Sacramento City Unified Approves Revised Budget Plan to Avoid State Takeover

The Sacramento City Unified School Board voted unanimously this week to approve a revised multi-year budget plan, a move designed to keep the district out of state hands after the county rejected its first proposal. The plan converts a nearly $229 million deficit into a surplus of just over $160,000 by the 2026-27 fiscal year, and it now heads to the Sacramento County Office of Education, which has 10 days to review it.

The math leans heavily on funding that will not repeat. Roughly $31 million comes from one-time state block grants, more than $22 million from Proposition 98 revenue, and two agreements with the teachers association add $97.6 million plus another $37 million in fiscal relief through June 2030. Board President Tara Jeane compared the process to a teacher adjusting a lesson plan when things do not go as expected: you pivot and keep moving forward. Union president Nikki Davis Mievsky pointed to the combined fiscal relief as a major piece of the puzzle.

What remains unresolved is the long game. The district still faces a reserve shortfall of about $25 million annually through 2029, which means the structural gap has not disappeared. It has just been pushed past the current deadline. With the county’s review window now open, the next 10 days will decide whether Sacramento City Unified keeps local control or faces a state takeover.

What do you think is the right long-term fix for Sacramento’s school budget? Let us know in the comments.