California school district on brink of collapse as plan to save it is slapped down impacting thousands of kids
One of California’s largest school districts is scrambling to avoid a state takeover after county education officials rejected its financial rescue plan, leaving the future of thousands of students, families and staff hanging in the balance.The Sacramento City Unified School District Board is set to hold a special meeting Tuesday evening to decide whether to appeal the rejection of its $158 million solvency plan to California’s state superintendent of public instruction, KCRA reported.The emergency meeting comes just days after the Sacramento County Office of Education rescinded the district’s board action approving the plan, arguing it failed to provide a sustainable path out of the district’s financial crisis.Last week, the school board unanimously signed off on the sweeping proposal, which paired a districtwide hiring freeze and spending reductions with a new labor agreement reached with the Sacramento City Teachers Association through June 2030.District officials argued the agreement would free up roughly $97 million by drawing on retiree health benefit funds, Medi-Cal reimbursements and money budgeted for vacant positions, helping close a massive budget gap while allowing the district to retain local control.But county financial officials rejected the proposal the following day, concluding it relied on funding sources that would create bigger financial problems down the road.The plan shifted money between existing accounts rather than generating new revenue, would increase long-term costs by tapping retiree health trust assets and would reduce the district’s financial flexibility in future years, according to the Sacramento County Office of Education.
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