An Important Financial Update From the SCUSD Board of Education

To the Students, Families, Staff, and Community Members of our District, 
 
We are writing to update you on the effort to close our budget deficit, stabilize the District’s finances, and deliver on our responsibility to provide students with the high-quality education they deserve. 
 
Since learning of this budget crisis last fall, the District has taken aggressive action to control costs, increase available cash, and right-size our administrative staffing levels. While we have made remarkable strides - slashing our deficit in half in a short period of time - it is obvious that more must be done to avoid taking a loan from the state and surrendering community control over the District.
 
Last Thursday, the SCUSD Board of Education received a cash flow report from the Fiscal Crisis Management Assistance Team (FCMAT), an independent state agency that provides support to school districts that are in financial distress. The report suggests that, without additional measures, the District risks running out of money by February 2027. 
 
While the Board appreciates the support and expertise of FCMAT, we have questions about the accuracy of the numbers upon which the report is based. For example, the report doesn’t account for the expectation of an additional $51 million in one-time funding in the 2026-27 state budget or include items on our Fiscal Solvency Plan that are in progress and not part of the budget yet. Further, there are internal borrowing options that may provide more runway for us to course correct.
 
While asking the state for a loan would provide financial support, state receivership also includes the loss of local input on the cuts that we have to make regardless. The Board has an obligation to our students, our community, and our democratic process to examine every viable strategy. Superintendent McArn and her staff are working tirelessly to identify additional ways to help the District conserve cash and operate more efficiently. It’s clear that time is not our ally. We will make the hard decisions now and act swiftly and decisively in whatever action is taken.
 
We know there is fear and uncertainty for our families, community, and valued staff. This process is difficult and painful and necessary. The Board and District will strive to provide timely and accurate information throughout every step of the process. Nothing will stand in the way of our commitment to providing every SCUSD student with a high-quality education in a school environment that is safe, welcoming, and inclusive.
 
In partnership,
 
Tara Jeane
President, SCUSD Board of Education