The majority (77%) of funds spent on outside vendors is restricted in use by law and cannot be used to address the district’s budget deficit. This includes services such as Special Education and federally mandated tutoring for students in Program Improvement schools.

For example, in 2010-11, all SCUSD contracted services totaled $36.9 million. Of this, the following funds went to mandated or restricted programs, meaning they could not under any circumstances be used to balance our budget:

• $17.9 million to non-public schools (for the placement of students with special needs as required by law)
• $8 million to programs paid for by categorical (restricted) funds, such as Title I, Title III and Economic Impact Aid
• $2.4 million to federally mandated after-school Supplemental Educational Support (SES) tutoring
• $259,000 to schools directly

Of the remaining $8.3 million in unrestricted funds:

• $3.7 million went to fund an incentive for former employees (mostly certificated staff) who retired early to save the District money
• $1.5 million went to Sacramento Police Department for school resource officers in high schools and middle schools
• $660,000 went to legal fees, including litigation defense
• $139,890 went to insurance costs, including liability insurance for all district schools and employees
• $129,000 was used for the district’s automated telephone parent notification system
• $100,000 went to the Department of Justice for fingerprinting of potential employees and volunteers

For 2012-13, SCUSD is aggressively reducing costs associated with contracts to vendors in areas that can affect the deficit. Nineteen contracts will be reduced and/or eliminated entirely in 2012-13. Click here for a complete breakdown on contracted services for the last five years and to learn which contracts are being reduced and/or eliminated next year.

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