Fiscal Solvency Update

Dear Sacramento City Unified Families,

We are reaching out to provide you with an update on the District’s financial challenge.

At yesterday’s Special Meeting of the Board of Education, the Board received and approved the 2025-26 Year-End Unaudited Actuals Financial Report and also reviewed Multi-Year Projections for years 2026-27 to 2028-29. 

The revisions increase 2026-27 revenues and other financing sources while significantly reducing our expected spending. The result is a $208.3 million improvement in our projected spending this fiscal year. This forecast puts the district on an achievable path to a balanced budget in 2026-27 and 2027-28.

Although the revised Multi-Year Projection substantially reduces the deficit, the District remains below the minimum reserve requirement and must continue implementing sustainable fiscal solutions to achieve long-term financial stability.

Our budget, like all spending projections, is based on a series of assumptions. However, we are confident that the assumptions we have made are reasonable and supported by recent funding trends. We will continue to examine and review our assumptions and make adjustments as necessary. 

To be clear, our work is not done. We continue to work diligently to implement every revenue and cost saving measure outlined in our Fiscal Sustainability Plan.

Additionally, the Board approved a Memorandum of Understanding (MOU) with the Sacramento City Teachers Association to Aid SCUSD Fiscal Recovery. This agreement reflects a shared commitment to preserve local control by identifying opportunities to increase revenue and achieve health plan savings.

Click here for the video of the presentations from this meeting.