SCTA Proposal to Address SCUSD Budget Fiasco

SCTA Proposal
To Address SCUSD Budget Fiasco
September 13, 2018

Despite increased revenues of 51% or nearly $200 million per year compared to 2012?13, the Sacramento City
Uni?ed School District has had its budget ?disapproved? by the Sacramento County Of?ce of Education
(SCOE). The District submitted a budget for 2018-19 that projects $24 million de?cit spending. The District
was aware of that de?cit when its budget was submitted in June 2018, demonstrating that the District?s
administration and School Board, led by its Budget Committee, have been derelict in their duties as stewards
of tax?payer dollars. The Superintendent and School President recently announced publicly that they
welcomed the involvement of SCOE and the State?s Fiscal Crisis Management Action Team (FCMAT),
implicitly admitting that the current District administration and board lacked the expertise to manage its own

affairs.

The District has been notoriously inaccurate in its budget projections, consistently underestimating revenues
while overestimating spending by tens of millions per year.

I. Immediate Savings

To address immediate concerns, and to ensure that the District resources remain focused on students and in
the classroom, the Sacramento City Teachers Association (SCTA) proposes the following, immediate,

changes:

1. Curbing Bureaucratic Bloat: In 2014-15, the District employed 190 administrative full-time
equivalent (FTES) positions. In 2018-19, that number has swelled to 271 FT Es, an increase of 43%
while the District?s ADA has remained relatively steady during the same period from 38,855 to
38,611.77 (estimated for 2018?19).

The District should reduce the number of administrators to 2014?15 levels which would produce a

 

 

 

 

savings of
of Salary Statutory Bene?ts Health Bene?ts Total Savings
Adminis trators (19.46%)
81 $149,342 $29,062 $20,000 $16,070,720

 

 

 

 

 

I 2. Reigning in Escalating Administrator Salaries: At $190,100, California Governor Jerry Brown is the
highest paid governor in the United States. SCUSD Superintendentjorge Aguilar is paid $305,950 in

2018?19, or 61% higher.

The District should compensate its administrators at levels that match other state and local
government entities, beginning with Superintendentjorge Aguilar, thereby achieving the following

savings:

SCTA Proposal to Address SCUSD Budget Fiasco

 

 

 

 

 

 

Position SCUSD State of California Savings to the
Salary Equivalent Position Dis trict
Superintendent Jorge Aguilar $305,950 $1 90,100 $1 1 5,850

 

 

We further propose that no other administrator receive more than $150,000 or roughly 2 times the
average certi?cated teacher salary.

That would produce the following savings:

 

 

 

 

 

 

 

 

 

 

 

 

 

Position SCUSD Salary Salary Over the
$150,000 Cap
Chief Operations $175,079 $25,079
Of?cer
Deputy Superintendent $205,817 $55,817
Chief Communications $175,079 $25,079
Of?cer
Chief Business Of?cer $202,351 $52,351
Chief Continuous $175,079 $25,079
Improvement Of?cer
Chief Human Resource $175,079 $25,079
Of?cer
Chief Academic $175,079 $25,079
Of?cer
Asst Supt Curriculum $156,043 $6,043
4 Asst Supt Instruction $156,043 $24,172
Asst Supt Labor $156,043 $6,043
Relations
Asst Supt Student $156,043 $6,043
Support Services
$281,907

 

 

 

 

 

Total Savings from Escalated Administrator Salary: $397,757

3. Questionable Af?liations: The District spends $37,868 to affiliate with the Council of Great City
Schools and $62,000 to affiliate with CORE District Collaborative, for a total of $99,868. The
District has demonstrated no bene?t to students from of these af?liations.

Total Proposed Saving

1. Elimination of Bureaucratic Bloat: $16,070,720
. Adjustment to Excessive Salaries $397,757
3. Questionable Af?liations $99,868

Grand Total $16,568,345

SCTA Proposal to Address SCUSD Budget Fiasco

II. Additional Potential Savings

With the cooperation of the Business Of?ce, to provide details behind various line items, we believe
additional reductions could be achieved without adversely impacting resources in the classroom.

Several items that warrant further exploration for additional savings, include, but are not limited to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Budget Item Actual expenditure, unless 2018?19 Notes
noted Budgeted
Amount

701 Board of Education $360,619 (2014?15) $616,234 71% increase

703 Superintendent $695,690 (2017-18) $895,966 29% increase

704 Employee Relations $39,897 What is it for?

717 Legal Counsel $1,784,490 Does it include
Labor relations?

712 Area Supt West $436,196 What is it for?

714 Area Assistant Supt. $272,351 What is it for?

716 Area Assistant Supt?Central $264,593 What is it for?

720 Area Assistant Supt?East $384,698 What is it for?

721 Chief Academic Officer $1,909,150 (2017?18) $2,421,026 27% increase

723 Deputy Superintendent $2,643,029 (2017?18) $4,979,754 88% increase

770 Human Resources $3,586,959 What?s included?
Directors duties can be
streamlined.

800 Business Services $1,818,979 (2017?18) $2,201,751 21% increase

840 Risk Management $1,830,512 (2017-18) $2,775,656 52% increase

850 Long Term Leave $12,033 (2017?18) $4,182,486 $4.2 million increase

859 Legal Settlement $371,514 (2017?18) $2,375,00 $2 million increase

860 Lottery $311,409 (2017?18) $5,879,722 $5.8 million increase

862 Direct Services $6,461 @7?1 8) $3,274,175 $3 million increase

 

 

Need for Budget Committee Change

In addition, in the best interest of students, parents and educators and the broader
Sacramento City Uni?ed School District community, we believe the Board of
Education?s Budget Committee members Jay Hansen, Michael Minnick, and Darrel
Woo should resign their budget committee positions as a recognition of their failure
to provide the appropriate oversight to the Superintendent and District staff to
protect the ?nancial interests of the District. SCTA also strongly recommends that
SCTA may appoint a representative to the Budget Committee, along with a
community representative appointed by the Community Priorities Coalition.

2015-16 Second interim

Sacramento City Uni?ed General Fund

Sacramento County

School District Criteria and Standards Review

34 67439 0000000

Form 

 

 

.580. Cost Analysis of District's Labor Agreements - Employees

?Status of Labor Agreem

in this section. r)

DATA ENTRY: Ciicit the appropriate Yes or No button for

Status of Labor Agreements as of the Previous Reportin Period

Were all managerial/con?dential labor negotiations settled as of ?rst interim projections?
if Yes or nla. Complete number of FT Es. then skip to SQ.
if No. continue with section SEC.

Salary and Benefit Negotiations

i

tsi Subsequent Year

2nd Subsequent Year

V.
is ago; the Previous Reporting Period." There are no extractions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior Year (2nd intetim) Current Year
(2014-15) (2015-16) (2016-17) (2017-18)
Number of management. supervisor, and I
con?dential TE positions 190.0 244.0 244.0 244.0
1a. Have any salary and bene?t negotiations been settled since ?rst interim projections?
if Yes. complete question 2. No
it No. complete questions 3 and 4.
1b. Are any salary and bene?t negotiations stilt unsettled? Yes
if Yes. complete questions 3 and 4.
Negotiations Settled Since First interim Projections
2. Salary settlement Current Year 151 Subsequent Year 2nd Subsequent Year
(2015-16) {2016-17) (2017-18)
is the cost of salary settlement included in the interim and I 
projections . - -
Total cost of salary settlement I I I
Change in salary schedule from prior year I I I
(may enter text. such as 'Reopener") I
Negotiations Not Settled
3. Cost of a one percent increase in salary and statutory bene?ts
Current Year 1st Subsequent Year 2nd Subsequant Year
(2015-16) (2016-17) (2017-10)

4. Amount included for any tentative salary schedule increases 857,915 I 606,332 I TI
Current Year is! Subsequent Year 2nd Subsequent Year
Health and Welfare Bene?ts (2015-16) (2016.17) (2017-18)

1. Are costs of How bene?t changes included in the interim and I Yes Yes Yes

2. Total cost of Haw bene?ts I 2.875.668 I 3,043,203 3,231,101

3. Percent of cost paid by employer I Varies Varies Varies

4. Percent projected change in Haw cost over prior year 6.0% I 6.0% 6.0% 1
Current Year ist Subsequent Year 2nd Subsequent Year
Step and Column Adjustments {2015-16) {2016-17) (2017-15)

1. Are step column adjustments included in the budget and I Yes Yes Yes

2. Cost ofstep a column adjustments I 152.412 153.175 1 153.9407

3. Percent change in step and column over prior year I 0.5% I 0.5% I 0.5% I
Current Year 1st Subsequent Year 2nd Subsequent Year
Other Benefits (mileage, bonuses. etc.) (2015-16) (2016-17) {2017-13)

1. Are costs of other bene?ts included in the interim and Yes Yes Yes

2. Total cost of other bene?ts. 43.2001 43,200 I 43,200

I 0.0% 0.0% 0.0%

 

3. Percent change in cost of other bene?ts over prior year

Page 103 of 105

aiifornia Dept oi Education
Financial Reporting Software - 2015.2.0

le: csi (Rev 1211512015) Page 24 of 26

(0

Printed: 3/10/2016 1:09 PM



Sacramento City Uni?ed
sacramento County

33:; Cost Analysis of District's Labor Agreements - Employees

2016-17 Second?lnterim
General Fund

School District Criteria and Standards Review

34 674

DATA ENTRY: Click the appropriate Yes or No button for ?Status of Labor Agreements as of the Previous Reporting Period.? There are no extractic

in this section.

Status of Labor Agreements as of the Previous Reporting Period
Were all managerial/con?dential labor negotiations settled as of ?rst interim projections? No

it Yes or n/a. complete number of FTEs. then skip to 89.
If No. continue with section SEC.

Salary and Bene?t Negotiations
Prior Year (2nd interim)
(201516)

Number of management. supervisor. and
con?dential FTE positions

1a. Have any salary and bene?t negotiations been settled since ?rst interim projections?

If Yes. complete question 2.
it No. complete questions 3 and 4.

1b. Are any salary and bene?t negotiations still unsettled?
If Yes. complete questions 3 and 4.

Negotiations SettledISince First interim Projections

2. Salary settlement:

is the cost of salary settlement included in the interim and muttiyear

projections 
Total cost of salary settlement

Change in salary schedule from prior year
(may enter text. such as 'Reopener')

Negotiations Not Settled

3. Cost of a one percent increase in salary and statutory bene?ts

4. Amount included for any tentative salary schedule increases


Health and Welfare (navy) Bene?ts

Are costs of st bene?t changes included in the interim and 

Total cost of bene?ts
Percent of cost paid by employer
Percent projected change in cost over prior year

P9535


Step and Column Adjustments

1. Are step column adjustments included in the budget and 

2. Cost of step 6 column adjustments
3. Percent change in step and column over prior year


Other Bene?ts (mileage. bonuses, etc.)

1. Are costs of other bene?ts included in the interim and 

2. Total cost of other bene?ts
3. Percent change in cost of other bene?ts over prior year

California Dept of Education
SACS Financial Reporting Software - 20162.0
File: mi (Rev 0610772016)


244.0 i

Current Year
(2016?17)

251.0j

No

Yes

Current Year
(2016-17)

401.525

Current Year
. (2016-17)

Current Year
(2016-17)

Yes
3.081.465
Varies
6.0%

Current Year
(2016-17)

Yes
287.409
0.5%

Current Year
(2016-17)

Yes

43.200
0.0%

Dana '32 n? ?50

1st Subsequent Year
(2017-18)

251.0

1st Subsequent Year
(2017-18)

15t Subsequent Year
(2017-18)

1st Subsequent Year
(2017-18)

Yes
3.266. 353
Varies
6.0%

1st Subsequent Year
(2017-18)

Yes
288.646
0.5%

Subsequent Year
(2017-18)

Yes
43.200
0.0%

Page 142 of 144

2nd Subsequent Year
(2013-19)

251

2nd Subsequent Year
(2018-19)

2nd Subsequent Year
(2018-19)

2nd Subsequent Year
(2018-19)

Yes
3,462,334
Varies
6.0%

2nd Subsequent Year
(2018-19)

Yes
290.290
0.5%

2nd Subsequent Year
(2018?19)

Yes
43.200
0.0%

2017-18 Second Interim
Sacramento City Uni?ed General Fund 34 67439 0000000
StiIErz-Jrrl?mt0 COUFW . School District Criteria and Standards Review . Form 

?80. Cost Analysis of District's Labor Agreements - Employees
- TD: I 

DATA ENTRY: Click the appropriate Yes or No button for "Status of Labor Agreements as of the Previous Reporting Period." There are no attractions
in this section.

Status of Labor Agreements as of the Previous Reporting Period
Were all manageriallcon?dential labor negotiations settled as of ?rst interim projections? No
If Yes or nla. complete number of FTEs. then skip to SS.
If No, continue with section SEC.

Salary and Bene?t Negotiations
Prior Year (2nd interim) Current Year 1st Subsequent Year 2nd Subsequent Year
(2016-17) (2017-13) ..- (2013-19) (2019-20)

Number of management, supervisor. and i
con?dential FTE positions 251.0 269.8 269.8 269.3

13. Have any salary and bene?t negotiations been settled since ?rst interim projections?
If Yes. complete question 2. Yes

If No. complete questions 3 and 4.

1b. Are any salary and bene?t negotiations stiil unsettled? No
If Yes. complete questions 3 and 4.

Negotiations Settled Since First Interim Projections

2. Salary settlement: Current Year 1st Subsequent Year 2nd Subsequent Year
(2017-1 3) (2018?19) (2019-20)
Is the cost of salary settlement included in the interim and multiyear
projections Yes Yes No

Total cost of salary settlement 402.924 1,033,337 0

Change in salary schedule ftom prior year
(may enter text. such as "Reopener") 2.5% 2.7% 0.0%

Negotiations Not Settled
3. Cost of a one percent increase in salary and statutory bene?ts

. Current Year 151 Subsequent Year 2nd Subsequent Year
(2017-18) (2018-19) (2019-20)
4. Amount included for any tentative salary scheduie increases

Current Year 151 SubSEquent Year 2nd Subsequent Year
Health and Welfare Bene?ts (2017-18) (2018-19) (2019-20)

1. Are costs of H&w bene?t changes included in the interim and 

2. Total cost of bene?ts

3. Percent of Haw cost paid by employer

4. Percent projected change in cost over prior year
Current Year 1st Subsequent Year 2nd Subsequent Year
Step and Column Adjustments (2017-18) (2018-19) (2019-20)

.1. Are step column adjustments included in the budget and 
2. Cost of step column adjustments
3. Percent change in step and column over prior year

I - Current Year 1st Subsequent Year 2nd Subsequent Year
Other Bene?ts (mileage, bonuses, etc.) (2017-18) (2018-19) (2019-20)

1. Are costs of other bene?ts included in the interim and 
2. Total cost of other bene?ts
3. Percent change in cost of other bene?ts over Prior year

California Dept of Education
SACS Financial Reporting Software - 201720
File: (Rev 0323:2017) . Page 24 of 26

Page 131 of 133

Printed: 3182013 3:57 PM

2010-19 July 1 Budget

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sacramento City Uni?ed General Fund 34 67439 0000000
Sacramento County School District Criteria and Standards Review Form 0165
58C. Cost Anal sis of District's LaborA reements - Mana emenUSupervisorICont'tdential Emgloyees
DATA ENTRY: Enter all applicable data items: there are no extractions in this section.
Prior Year (2nd Interim) Budget Year 151 Subsequent Year 2nd Subsequent Year
(2017-18) [2018-19) (2019-20) (2020-21)
Number of management. supervisor. and 
con?dential FTE positions 1 269.8 1 271.0 271.0 271.0

Salary and Bene?t Negotiations
1. Are salary and bene?t negotiations settled for the budget year? Yes
it Yes. complete question 2.
it No. identify the unsettled negotiations including any prior year unsettled negotiations and then complete questions 3 and 4.
If nla. skip the remainder of Section 38C.
Negotiations Settled
2. Salary settlement: Budget Year 1st Subsequent Year 2nd Subsequent Year
(2013-19) (2019-20) (2020-21)
Is the cost of salary settlement included in the budget and multiyear
projections Yes No No
Total cost of salary settlement 1,083.33? 0 0
change in salary schedule from prior year
(may enter text. such as 'Reopener') 2.7% 0.0% 0.0%
Negotiations Not Settled
3. Cost of a one percent increase in salary and statutory bene?ts 
Budget Year 15! Subsequent Year 2nd Subsequent Year
(2018-19) (2019-20) (2020-21)
4. Amount included for any tentative salary schedule increases I
Budget Year 1st Subsequent Year 2nd Subsequent Year

Health and Welfare (HEW) Benefits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1. Are costs of Haw bene?t changes included in the budget and 
2. Total cost of HIM bene?ts
3. Percent of st cost paid by employer
4. Percent projected change in cost over prior year
Budget Year 1st Subsequent Year 2nd Subsequent Year
Step and Column Adjustments (2018-19) 42019-20) (2020.21)
1- Are step column adjustments included in the budget and 
2. Cost ofstep and column adjustments .
3. Percent change in step 8. column over pnor year
Budget Year Subsequent Year 2nd Subsequent Year
Other Bene?ts (mileage. bonuses, etc.) (2015-19) (2019-20) (2020.21)
1. Are costs of other bene?ts included in the budget and MY Ps?
2. Total cost of other bene?ts
3. Percent change in cost of other bene?ts ever prior year
Caltfomla Dept of Education Page 164 Of 166

SACS Financial Reporting Software - 2015.10
File: cs?a (Rev 0411912010) Page 26 of 23

Printed: 51312013 10:19 AM

Second Interim
DISTRICT CERTIFICATION OF INTERIM REPORT 34 67439 0000000.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sacramento City Uni?ed
Sacramento County For the Fiscal Year 2017-18 Form CI
NOTICE OF CRITERIA AND STANDARDS REVIEW. This Interim report was based upon and reviewed using the
state-adopted Criteria and Standards. (Pursuant to Education Code (EC) sections 33129 and 42130)
Signed: Date:
District Superintendent or Designee
NOTICE OF REVIEW. All action shall be taken on this report during a regular or authorized special
meeting of the governing board.
To the, County Superintendent of Schools:
This interim report and certification of ?nancial condition are hereby filed by the governing board
of the school 
Meeting Date: March 15, 2018 Signed: 
President of the Governing Board A
if! CERTIFICATION OF FINANCIAL CONDITION 
POSITIVE CERTIFICATION 
As President of the Governing Board of this school district, I certify that based upon current projections this 
district will meet its ?nancial obligations for the current ?scal year and subsequent two fiscal years. 

QUAWIED CERTIFICATFONH 
As President of the Governing Board of this school district, certify that based upon current projections this
district may not meet its?nancial obligations for the current ?scal year or two subsequent ?scal years.
NEGATIVE CERTIFICATION
As President of the Governing Board of this school district, I certify that based upon current projections this
district will be unable to meet its ?nancial obligations for the remainder of the current ?scal year or for the
subsequent ?scal year.
Contact person for additional information on the interim report:
Name: Gloria Chung Telephone: j9_16) 643-9405
Title: Director, Budget E-mail: GIoria@scusd.edu
Criteria and Standards Review Summary
The following summary is automatically completed based on data provided in the Criteria and Standards Review
form (Form 01CSI). Criteria and standards that are "Not Met," and supplemental information and additional ?scal
indicators that are "Yes." may indicate areas of potential concern. which could affect the interim report certi?cation,
and should be carefully reviewed.
Not
CRITERIA AND STANDARDS Met Met
1 Average Daily Attendance Funded ADA for any of the current or two subsequent ?scal years has
not changed by more than two percent since ?rst interim- 

 

 

 

 

 

 

Page 6 of 133

fornia Dept of Education
IS Financial Reporting Software - 2017.2.0

10" (Rev 0410312017) Page 1 0:3 Printed: 3/8/2013 3:58 PM

 3 i MAILING: PO. Box 269003, Sacramentor CA 95826-9003
- . . PHYSICAL LOCATION: 10474 Mather Boulevard, Mather, CA

. (916) 228-2500 . 

David W. Gordon
Superintendent

April 16,2018
BOARD OF EDUCATION
Brian M. Rivas
President Jorge A. Aguilar, Superintendent
0_ Alfred Brown, Sr. Sacramento City Unified School District
UicePresldent 5735 47th Avenue

Sacramento, CA 95824

Joanne Ahola

HeatherDaViS SUBJECT: 26117-2018 Second Period interim Report

Harold Fong, M.S.W.
Dear Superintendent Aguilar:

Bina Lefkovitz

JaCCIuelynLevy After submission of the Second Period Interim Report, the County
Superintendent of Schools is required to review the report for adherence to
the State-adopted Criteria and Standards pursuant to Education Code
sections 42130-31 and 33127. The district filed a Second Interim Report
with a positive certification. Based on the multi?year projections and
assumptions provided by the district, it appears the district will meet its 2%
unrestricted reserve requirement for the current fiscal year and two
subsequent fiscal years. We concur with the district?s positive certification

with the following comments:

The multi?year projections submitted project that the unrestricted
General Fund balance will decrease by $13,919,229 in 2017-2018,
$4,829,415 in 2018?2019, and $21,856,204 in 2019-2020. Deficit
spending is reduced in 2018-2019 due to the $11.4 million in one-
time funds available to the district which partially masks the structural
deficit issue facing the district.

0 The district is projecting decreases of90 ADA for 2017?2018, 90 ADA
for 2018-2019, and 90 ADA for 2019-2020.

It is noted that the projected contribution from the General Fund to
the Child Development Fund has increased from $1.5 million at First
Interim to $1.7 million at Second Interim.

We request that the district provide the following:

In our letter dated January 16, 2018, we expressed oUr concern with
the district using 2018-2019 one-time funds to pay for on?going
expenses and we suggested the district consider on-going budget





Jorge A. Aguilar, Superintendent
April 16, 2018
Page 2

 

reductions to offset additional expenses with the goal of eliminating deficit
spending. The district still has an on-going structural deficit problem that will
require budget reductions with the goal of eliminating deficit spending and
maintaining fiscal solvency. Please submit, with the 2018-2019 Adopted Budget,
a board-approved budget reduction plan. The plan must be viable and reverse the
deficit spending trend. It should include supporting on?going expenditures from
on-going revenue sources, Any delay in resolving the structural deficit could
compromise the options available to the district to maintain fiscal solvency.

We continue our request that the district provide the following:

6

in our letter dated January 16, 2018, we also requested that the district submit a
viable long?term Other Post?Employment Benefits (OPEB) liability plan with the
Second Interim Budget Report. A plan was not submitted with the Second Interim
Report. We note that $3 million has been set aside in the California
Employer's Retiree Benefit Trust (CERBT) for funding the OPEB liability.

Since 2007, my office has repeatedly requested a workable long-term OPEB
funding plan, and we must again voice our concern regarding the lack of
measurable and implemented progress towards the funding of the OPEB
obligation, which now exceeds $621 million. The above mentioned $3 million
contribution falls woefully short of the annual amount needed to pay down the
current liability. The continued lack of urgency to address this obligation only
increases the encroachment into the General Fund which cannot be sustained
without further eroding educational programs. As always, the Sacramento County
Office of Education staff is available to assist the district in this endeavor.

Please submit a viable long?term OPEB liability plan with the 2018-2019 Adopted
Budget. The plan must include an actuarially?sound liability reduction plan allowing
the district to fund the promised retiree benefits. Continuing to transfer these
escalating costs to the General Fund drains resources which should be dedicated

to fund programs for students.
Notify us immediately, and provide for our review, any changes to the budget.

Continue to closely monitor future enrollment trends and inform us of budget
adjustments should enrollment trends fluctuate.

 

 

 

 

2018-2019
Proposed Budget for All Funds

Sacramento
City Unified
School Distriet 

Guiding Principle

All students graduate with the greatest number
of post?secondary choices from the widest array of options.

Board of Education
June 7, 2018

 

 

 

 in.
I

is

Sacramento City Unified July 1 Budget 34 67439 0000000
Sacramento County FINANCIAL REPORTS Form CB
2018-19 Budget
School District Certi?cation

 

ANNUAL BUDGET REPORT:
July 1, 2018 Budget Adoption

Insert in applicable boxes:

This budget was developed using the state-adopted Criteria and Standards. It includes the expenditures
necessary to implement the Local Control and Accountability Plan (LCAP) or annual update to the LCAP that
will be effective for the budget year. The budget was ?led and adopted subsequent to a public hearing by the
governing board of the school district pursuant to Education Code sections 33129. 42127, 52060, 52061, and

52062.

If the budget includes a combined assigned and unassigned ending fund balance above the minimum
recommended reserve for economic uncertainties, at its public hearing, the school district complied with
the requirements ofsubparagraphs (B) and (C) of paragraph (2) of subdivision of Education Code

Section 42127.

 

 

 

 

Budget available for inspection at: Public Hearing:
Place: Services Place: Board Meeting Room-Serna Center
Date: June 04. 2018/\ Date: . . .
Time: 06:00 PM
Adoption Date: June 21, 2018

 

Signedm g?f/
Wergim the Governing Board

(Original signature required)

 

Contact person for additional information on the budget reports:

Name: Gloria Chung Telephone: 916?643-9405

Title: Director of Fiscal Services E-mail: Gloria@scusd.edu

 

 

 

Criteria and Standards Review Summary

The following summary is automatically completed based on data provided in the Criteria and Standards Review
(Form 01CS). Criteria and standards that are "Not Met," and supplemental information and additional ?scal
indicators that are "Yes." may indicate areas of potential concern for ?scal solvency purposes and should be

carefully reviewed.

 

 

 

 

 

 

 

Not
CRITERIA AND STANDARDS Met Met
1 Average Daily Attendance Budgeted (funded) ADA has not been overestimated by more than the
standard for the prior fiscal year. or two or more of the previous three 
?scal years
California Dept of Education
SACS Financial Reporting Software 2013.10 Page 2 of 166

File: cb (Rev 04/04/2018) Page 1 of 4 Printed: 5131/2016 10:20 AM

 BUDGET ASS UMPTIONS: 2018-19 THROUGH 2020-21 (Continued)

BEGINNING BALA 

Beginning Balance

Reserves

Based on 20 7-18 estimated ending fund balance.

The 2018?19. 2019?20. and 2020-21 projections fund the 2%
General Fund Reserve for economic uncertainty as our Board and
Superintendent are assessing the viability ofa budgeting allocation
methodology that focuses greater attention on the use of metrics
that result in increased student achievement while eliminating the
structural de?cit.

Starting in 2017?18, expenses are greater than costs and reserves
are used to cover the overage.

Page 10 of166

Sacramento City Uni?ed July 1 Budget 34 67439 0000000
Sacramento County FINANCIAL REPORTS Form CB
2018-19 Budget
School District Certi?cation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Not
CRITERIA AND STANDARDS {continued} Met Met
2 Enrollment Enrollment has not been overestimated by more than the standard
for the prior ?scal year. or two or more of the previous three ?scal it
years.
3 ADA to Enrollment Projected second period (P-2) ADA to enrollment ratio is consistent with
historical ratios for the budget and two subsequent ?scal years. 
4 Local Control Funding Projected change in LCFF revenue is within the standard for the
Formula (LCFF) Revenue budget and two subsequent ?scal years. 
5 Salaries and Bene?ts Projected ratios of total unrestricted salaries and bene?ts to total
unrestricted general fund expenditures are consistent with historical 
ratios for the budget and two subsequent ?scal years.
6a Other Revenues Projected operating revenues federal. other state. and other
focal) are within the standard for the budget and two subsequent 
?scal years.
6b Other Expenditures Projected operating expenditures books and supplies. and
services and other operating) are within the standard for the budget 
and two subsequent ?scal years.
Ongoing and Major If applicable. required contribution to the ongoing and major 
Maintenance Account maintenance account restricted maintenance account) is 
included in the budget.
De?cit Spending Unrestricted de?cit spending-fit any. has not exc?Ededmth'ei standard
for two or more of the last three ?scal years. 
9 Fund Balance Unrestricted general fund beginning balance has not been
overestimated by more than the standard for two or more of the last 
three ?scal years.
10 Reserves Projected available reserves reserve for economic
uncertainties. unassigned/unappropriated amounts) meet minimum 
requirements for the budget and two subsequent ?scal years.
SUPPLEMENTAL No Yes
St Contingent Liabilities Are there known or contingent liabilities ?nanciai or program
audits. litigation. state compliance reviews) that may impact the 
budget?
52 Using One-time Revenues Are there ongoing general fund expenditures in excess of one
to Fund Ongoing percent of the total general fund expenditures that are funded with 
Expenditures one?time resources?
S3 Using Ongoing-Revenues E'Are ?ine'r??ia'rga rand? expenditures that-are? 
to Fund One?time funded with ongoing general fund revenues? 
Expenditures
S4 Contingent Revenues Are any projected revenues for the budget or two subsequent ?scal
years contingent on reauthorization by the local government. special
legislation. or other de?nitive act parcel taxes. forest reserves)? 
85 Contributions Have contributions from unrestricted to restricted resources. or
transfers to or from the general fund to cover Operating de?cits.
changed by more than the standard for the budget or two 
subsequent ?scal years?
California Dept of Education
SACS Financial Reporting Software 2018.1.0 Page 3 Of 166
File: cb (Rev 04/04/2018) Page 2 of 4 Printed: 5l31l2018 10:20 AM

Sacramento City Uni?ed

July 1 Budget 34 67439

0000000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sacramento County FINANCIAL REPORTS Form CB
2018-19 Budget
School District Certification
ADDITIONAL FISCAL INDICATORS (continuedUncapped Health Bene?ts Does the district provide uncapped (100% employer paid) health
bene?ts for current or retired employees? 
A7 independent Financial ls the district's ?nancial system independent from the county of?ce
System system? 
A8 Fiscal Distress 'F'z'epor't'e' ?Does the district have any reports that ?scal-distress? if yes.
provide copies to the COE. pursuant to EC 
A9 Change of CEO or Have there been personnel changes in the superintendent or chief
Superintendent business of?cial (C 80) positions within the last 12 months? 
California Dept of Education
SACS Financial Reporting Software - 2015.1 0 Page 5 of 166
Page 4 of 4 Printed: 5l31i2018 10:20 AM

File: cb (Rev 041042015)

 

 

 

2018-19 BUDGET OVERVIEW

BUDGET OVERVIEW

Sacramento City Uni?ed School District ?nancial goal is to maintain the required level of reserve,
maximize district revenues and ensure district revenues are used to achieve the educational goals of the
district. Based on the Govemor?s May Revise Budget, these documents re?ect the budget for 2018?19

and multi-year projections for 2019?20 and 2020-21.

Sacramento City Uni?ed School District Budget is comprised of three major components: (1) Fund
Balance (Ending and Beginning Balance); (2) Revenues; and (3) Expenditures.

Three conditions impact the Sacramento City Uni?ed School District Budget:




?La: Revenue State Budget/l"



b. Expe?di?asg?ig?gases in expenditures 
?Enrollment steady 








 

 

 

Page 1 of 166

 

July 1 Budget

General Fund 34 67439 0000000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

File: (Rev 0373072015)

Sacramento City Uni?ed
Sacramento County Multiyeer Projections Form MYP
Unrestricted
2018?19 
Budget Change 2019-20 Change 2030-21
Object (Form 01) (C015. Projection (Cots. Projection
Description Codes (A) (B) (C) (D) (E)
(Enter projections for subsequent years 1 and 2 in Columns and 
current yeir - Column A - is extracted)
A. REVENUES AND OTHER FINANCING SOURCES
l. Limit Source:- 8010-8099 395.472.932.00 2.45% 405.165.387.00 2.40% 414.170.675.00
2. Federal Revenues 8100-8299 0.00 0.00% 0.00%
3. Other State Revenues 8300-8599 20.649.631.00 63.35% 7,568,507.98 2.67% 7,770,587.15
4. Other Local Revenues 8600-8799 3,771,624.00 0.00% 3,771,624.00 0.00% 3,771,624.00
5. Other Financing Sources 
a. Transfers in 8900-8929 1,903,369.00 2.57% 1,952,285.58 2.67% 2,004.41 1.61
Other Sources 8930-8979 0.00 0.00% 0.00%
c. Contributions 11980-3999 (77.441.727.33) 2.21% (79.153.484.72) 5.20% (83.266.882.76)
6. Total (Sum lines A1 ASC) 344.355.828.67 4.47% 339.304.319.134 1.72% 345.150.415.00
B. EXPENDITURES AND OTHER FINANCING USES
l. Certi?cated Salaries
a. Base Salaries 167.178.458.57 166.637.410.82
b. Step 8: Column Adjustment 1,935,099.25 2,032,976.41
e. Cost-of-Living Adjustment
d. Other Adjustments (2.476347%
e. Total Certi?cated Salaries (Sum lines Bla tlu-u Bid) 1000-1999 167.178.458.57 47.32% 166.637.410.82 122% 160.670.387.23
2. Classi?ed Salaries
a. Base Salaries 43.5411 15.99 43.908.453.59
b. Step Column Adjustment 484.174.60 658,626.80
c. Cost-oE-Living Adjustment
d. Other Adjustments (122,837.00
c. Total Classi?ed Salaries (Sum lines 32:: thru 32d) 2000-2999 43,547,  15.99 0.83% 43.908.453.59 1.50% 44.567.030.39
3. Employee Bene?ts 3000-3999 118.630.157.65 5.13% 124.716.632.28 5.61% 131.707.946.69
4. Books and Supplies 4000-4999 10.494.424.58 4.56% 10.120.934.58 0.00% 10.120.934.58
5. Services and Other Operating Expenditures 5000-5999 27.759.009.12 1.62% 28.209.009.12 1.60% 28.659.009.12
6. Capital Outlay 6000-6999 166,698.14 0.00% 166,698.14 0.00% 166,698.14
7. Other Outgo (excluding Transfers of indirect Costs) 7100-7299. 7400-7499 5,005,046.00 9.23% 5,467,014.00 -0.03% 5,465,334.00
3. Other Outgo-Transfers oflndirecl. Costs 7300-7399 (4,353,225.33) 0.00% (4.353.2sz 0.00% (4.01.2213)
9. Other Financing Uses
a. Transfers Out 7600-7629 2.875.207.00 48.71% 612,170.00 0.00% 612,778.00
Other Uses 7630?7699 0.00 0.00% 0.00 0.00%
10. Other Adjustments (Explain in Section below) 22.068.043.71) (40.455.927.82)
11. Total (Sum lines Bl titru BIO) 371.292.891.72 4.82% 353.407.061.49 -2.34% 345.00.415.00
C. NET (DECREASE) IN FUND BALANCE
(Ene A6 minus line Bl I) (26.937.063.05) ?4,102,741.65 0.00
D. FUND BALANCE
1. Not Beginning Fund Balance (Form 01, line Fle) 61.597.937.70 34.660.874.65 20.558.133.00
2. Ending Fund Balance (Sum lines and DI) 34.660.874.65 20.558.133.00 20.558.133.00
3. Components of Ending Fund Balance
a. Nonspendable 9710-9719 545,000.00 545,000.00 545,000.00
b. Restricted 9740
c. Committed
1. Stabilization Arrangements 9750 0.00
2. Other Commitments 9760 0.00
d. Assigned 9780 14.102.741.65
e. UnassignedlUnappi-opriated
1. Reserve for Economic Uncertainties 9789 20.013.133.00 20.013.133.00 20.013.133.00
2. Unassigned/{Inappropriated 9790 0.00 0.00 0.00
E. Total Components of Ending Fund Balance {Hm-l 
(Line D3fmust agree with line D2) 34.660.874.65 t' 20.558.133.00 . i: 20.558.133.00 . 
[KM-wa?f/
Calilomia Dept of Education Page 12 of 166
SACS Financial Reporting Software - 2018.10
Page 1 Printed: 573072010 4:43 PM

 MAILING: 259003.5acramenm.CA 95826-9003
10474 Mather Boulevard, Mather, CA

'AO?ffi-zce of Education I.

(916) 228-2500 - 

David W. Gordon
Superintendent 
BOARD OF EDUCATION August 22? 2018 24 le'ltl


0. Alfred Brown, Sr. 
President Jorge A. Aguilar, Superintendent OFFICE OF THE 
JoanneAhola Sacramento City Unified School District 
chPresident 5735 47th Avenue
Heatheroavis Sacramento, CA 95824
SUBJECT: 2018-2019 Adopted Budget Report

Paul A. Keere'r, MBA, 

Ema Lemovitz Dear Superintendent Agurlar:

KarinaTalamantes in accordance with the provisions in Education Code sections 42127(c)(1)(2)
and 33127, we have examined the district's 2018?2019 Adopted Budget to
determine whether it complies with the Criteria and Standards adopted by the
State Board of Education. Based on our review of the district assumptions and
multi?year projections, it appears that the district will meet its 2018-2019
minimum reserve requirement, but will fall short in the two subsequent fiscal
years by approximately $22.1 million in 2019?2020, and $40 million in 20204

2021. The 2019-2020 shortfall leaves the district with a negative fund balance.
Therefore, the district's Adopted Budget is disapproved.

in letters from this office dated December 7, 2017', January 16, 2018, and April
16, 2018, we discussed our concerns with the district's o'n-going structural
deficit problem, and the need for the district to submit a board?approved budget
reduction plan to reverse the deficit spending trend. To date, no such plan has

been received by this office.

Since our review of the district's second interim budget, the district?s fiscal
situation has worsened. While revenues have remained relatively stable,
unrestricted expenditures in 2018-2019 and 2019-2020 have increased
significantly even though the district has been asked to solve its structural
deficit problem. Since the district?s submission of the second interim report,
unrestricted expenditures increased from approximately $348 million to $371
million in 2018?2019; and from approximately $359 million to $375 million in

2019?2020.

ved budget, and as provided in Education Code
at advisor to

On or before

in response to this disappro
section 42127(d), the County Superintendent may assign a. 

assist the district in developing a budget that can be approved.



(mun-um!? i-uu

Jorge A. Aguilar, Superintendent
August 22, 2018
Page 2

October 8, 2018, the governing board of the district shall revise the adopted budget to
include any response to the recommendations of the County Superintendent, adopt
the revised budget, and file the revised budget with the County. Superintendent. Before
revising the budget, the governing board of the district shaii hold a public hearing
regarding the proposed revisions. if the County Superintendent is unable to approve the
revised budget, the County Superintendent snail invoke his duties under Education Code

sections 42127.1 through 42127.3.

By October 8., 2018, the district shall submit a viable board?approved budget plan that will
reverse the deficit spending trend. The plan should include support of on?going
expenditures from on-going revenue sources, along with a timeline showing when and
how each line item adjustment will be implemented. This office will assign a fiscal advisor
to assist the district during this process. While the district must reverse its deficit spending
in- time to meet minimum reserve levels in 2019?2020 through 2020?2021, this office
recommends that the district begin making cuts immediately, as any delay in resolving
the structural deficit could compromise the options available to the district to maintain
fiscal solvency.

We continue our request that the district provide the following:
a Notify us immediately, and provide for our review, any changes to the budget.

9 Continue to closely monitor future enrollment trends and inform us of budget
adjustments should enrollment trends fluctuate.

Attached fOr your reference are copies of the letters noted above. if you have any
questidns or concerns regarding this review, piease feel free to sail Tamara Sanchez at

916-228?2551 .

Sincerely, 
. . 
I ?ew/w

David W. Gordon
Sacramento County Superintendent of Schools



cc: Jessie Ryan, Board President, SCUSD
Tamara Sanchez, Assistant Superintendent, SCOE
Debra Wilkins, District Fiscal Services Director, SCOE
Crowe Horvvath, LLP, Auditor