Strikes in Twin Rivers and Natomas spotlight high-stakes budget decisions as districts face rising costs, declining enrollment and risk of cuts.
SACRAMENTO, Calif — A state school finance expert says teacher strikes in two Sacramento-area districts highlight difficult budget decisions with potential long-term consequences.
Educators in Twin Rivers Unified have been on strike since March 5, while Natomas Unified teachers walked out March 10. Union leaders say they are seeking higher pay, better health benefits and more classroom support.
Both districts said Monday they are continuing negotiations.
Natomas Unified said it presented an updated offer that increases district contributions toward health care.
“The District’s updated offer increases the District’s contribution toward health care coverage … while remaining mindful of the fiscal realities facing our district,” the district said in a statement.
Twin Rivers Unified, in a separate statement, pointed to rising health care costs as a major challenge.
“Rising health care costs remain one of the most significant financial challenges facing school districts across California,” the district said, adding its proposal aims to support teachers while maintaining financial stability.
Union leaders say the offers fall short.
Twin Rivers United Educators say the district has the resources to meet their demands, while Natomas teachers say compensation has not kept pace with the cost of living and classrooms need more support.
To assess the financial stakes, ABC10 spoke with Michael Fine, chief executive officer of the Fiscal Crisis and Management Assistance Team, an independent state agency created by the Legislature that analyzes school district finances and helps identify and prevent fiscal distress.
Fine said neither district is currently in financial trouble.
“Neither of these districts are close to that point,” he said. “Sacramento City may be close to that point, but Natomas and Twin Rivers are not exhibiting — yet — cash flow difficulty.”
But he said the pressures behind the strikes reflect broader statewide trends, including declining enrollment and rising costs.
California has lost about 500,000 students since the mid-2000s and is projected to lose another 500,000 in the next decade, reducing funding tied to attendance, Fine said.
At the same time, districts face increasing costs for health benefits, special education, utilities and insurance.
With about 85% of school budgets spent on staffing, districts have limited flexibility.
“You can’t balance the budget on the other 15%,” Fine said.
If the districts agree to costs they cannot sustain, they may face deficit spending and future cuts.
“When you spend more than you bring in, that’s deficit spending,” Fine said.
Those decisions can lead to layoffs or program reductions months or years later.
“What traditionally goes wrong is we settle … and then months later we deal with the consequences,” Fine said.
Fine also said prolonged strikes can affect students and funding. Schools rely on attendance for revenue, and significant drops mean fewer dollars and disrupted instruction.
Negotiations are ongoing in both districts, and there is no clear timeline for when either strike will end.
Watch more from ABC10: Could teacher pay increases lead to layoffs in California schools?