PRESS RELEASE: SCUSD Welcomes State Recognition of MOU’s Fiscal Benefits, Calls for Continued CDE Partnership

Sacramento, CA – Sacramento City Unified School District (SCUSD) today welcomed the California Department of Education’s recognition that the District’s Memorandum of Understanding with the Sacramento City Teachers Association was designed to improve SCUSD’s fiscal position and strengthen its ability to meet its financial obligations.

In letters issued August 10, the State addressed both SCUSD’s appeal of the Sacramento County Office of Education’s rescission of approval of the MOU and the broader question of fiscal oversight of the District.

SCUSD respects the State’s decision not to uphold the District’s appeal. At the same time, the District welcomes CDE’s substantive assessment of the agreement itself.

CDE stated that the MOU “would have improved SCUSD’s current cash flow position” and that it “was not only consistent with but improved the school district’s ability to meet its financial obligations.” The State also expressed concern that SCOE’s decision to rescind approval of the agreement “is not effective in resolving SCUSD’s financial problems.”

“These findings are important because they confirm that the MOU was intended to be part of the solution to the District’s fiscal challenges,” said SCUSD Superintendent Cancy McArn. “We respect the State’s appeal decision, while also welcoming its clear assessment that the agreement itself provided meaningful fiscal benefits.”

CDE further called on SCUSD and SCOE to continue deliberations regarding the best path toward fiscal solvency, offered additional state support and meeting facilitation, and indicated that it will continue closely monitoring both the District’s financial condition and the effectiveness of county-level oversight.

SCUSD welcomes that continued involvement and is asking CDE to remain actively at the table as the District updates its budget outlook with the latest financial information and evaluates all available options for moving forward.

That work will include a review of cost-saving strategies, potential agreements and other measures that could improve the District’s short- and long-term financial position.

“The State’s letters give all of us an opportunity to focus on what matters most: identifying actions that actually improve the District’s financial condition,” said District Board President Tara Jeane. “As our budget outlook is updated, we want CDE, SCOE and our labor partners working from the same facts and focused on solutions that move SCUSD toward solvency while protecting students, employees and essential services.”

SCUSD remains committed to working cooperatively with SCOE, CDE and its labor partners to develop a sustainable path forward. The District believes continued state engagement will help ensure that future decisions are evaluated based on their actual fiscal impact and their contribution to long-term stability.