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Natomas USD Averts Fiscal Crisis, Must Make Further Budget Cuts

County Office Cancels Request for Emergency Loan, Removes “Negative” Budget Status


Due to improvement in the Natomas Unified School District's financial position, the Sacramento County Office of Education (SCOE) is canceling its request for an emergency loan for the district located in the north Sacramento-area. In addition, due to the improvement in the district's cash position, SCOE is asking the Fiscal Crisis and Management Assistance Team to stop its process to declare Natomas Unified a fiscal emergency. This will remove the district from "negative" budget status.

"We are greatly encouraged by the turnaround at Natomas Unified and commend the School Board, the administration and the employees," said David W. Gordon, Sacramento County Superintendent of Schools. "However, while we are canceling our request for an emergency loan, I am still greatly concerned with Natomas' budget situation."

The latest cash flow projections submitted by Natomas Unified show improvement. However, the district's most recent budget submission continues to show significant deficit spending in 2012-13 and 2013-14 and that cash flow forecast remains a concern without further adjustments.

"Due to the continued volatility in both the State and the district budgets, it is imperative that the district act now with additional spending cuts and stop deficit spending," said Superintendent Gordon. "Unless spending is curtailed through employee concessions and other reductions, Natomas could find itself facing a potential State takeover again."

As far back as January 2007, the County Superintendent repeatedly warned the Natomas Unified School District about the need to balance its budget. In September 2009, the County Superintendent appointed a fiscal advisor and in December 2010 started the process to secure an emergency loan from the State.

  • Download a copy of a letter from Superintendent Gordon to Natomas Unified School District Interim Superintendent Walt L. Hanline, Ed.D. regarding the district's budget status.