Sacramento City Unified hires consultant to tackle financial crisis

SACRAMENTO, Calif. — Sacramento City Unified School District leaders are bringing in outside help as they work to close a budget shortfall of more than $100 million and avoid running out of money.

The school board approved a contract to hire HYA Corporation, a three-person consulting team tasked with reviewing the district’s finances, identifying savings and helping build a path forward.

“It is so important to make the right decision, and that we have the right information to make the best decision. That means it is all-hands-on-deck through this team,” Tara Jeane, president of the Sacramento City Unified Board of Trustees, said.

Under the contract, the consultant will cost up to $400,000 through September.

The move comes as district leaders warn of a looming financial crisis and say state receivership is not an option. Officials are working to prevent a worst-case scenario in which the district could run out of cash next school year, as early as this fall.

“They say the definition of insanity is doing the same thing again and expecting different results. We are moving differently,” Jeane said.

District leaders say hiring the consultant is just one part of a broader effort to stabilize finances. The district is also bringing in Sacramento County Office of Education-backed financial experts, restructuring central offices and restarting the search for a permanent budget chief.

“We also want to value our employees who are working hard and who are going through a very difficult time right now. So we need to move as quickly as we can, as thoughtfully as we can, while recognizing there is lots at stake,” Interim Superintendent Cancy McArn said.

District officials say Sacramento City Unified will remain solvent through the end of the current school year, but acknowledge difficult decisions remain ahead as they work to stabilize the budget.

The consulting group is expected to begin work immediately.