SACRAMENTO, Calif. — The Sacramento City Unified School District is running out of money, and a crucial deadline for requesting an emergency loan from the state is days away.
A state bailout is a last resort for school districts facing insolvency. Since California established the process in the 1990s, 10 districts have requested (and subsequently received) one. The SCUSD Board of Education does not want to become number 11, but with time and money running out, fiscal experts overseeing the district say it may be the only realistic option.
Nobody is disputing the district is months away from going insolvent—running out of cash—if nothing changes. What is in question is what to do about it…