Sacramento City Unified superintendent steps down as district faces $113 million deficit
The Sacramento City Unified School District is looking at a multi-million-dollar budget deficit and is now facing a major shakeup after the superintendent stepped down on Thursday.
The timing of that move has raised questions about what's next. That news broke at the start of a regularly scheduled board meeting, and within minutes, an interim superintendent was already in position. The board also announced it was actively moving forward with finding a replacement.
Lisa Allen has been with the district for three decades and was superintendent for less than three years. The timing of the move was not a budget-saving measure but a mutual decision.
Allen didn't say the district's money problems are why she chose to resign. The board president told CBS News Sacramento that this move was made to open up new opportunities to tackle the complex issues facing the district.
Allen thanked the community for supporting the students and educators in Sacramento. The voluntary separation agreement gives Allen a six-figure payout between her salary and vacation.
"It took courage for me to accept the role of being the superintendent, and it's now taking courage for me to let go after 30 years of dedication and service," Allen said.
The interim superintendent who slid into the seat had served as chief human resources officer and head negotiator for the district.
Anyone in the superintendent seat is going to have to navigate the budget, proposed layoffs, hiring freeze, and the threat of state intervention. That's in the words of the board president, Tara Jeane, who said they will be looking for someone who likes a challenge.
The numbers tell that story. The standout information from the financial solvency plan update shows that the projected budget deficit is a little over $113 million for the 2025-2026 school year. But the district also announced that it's found ways to save $42 million in what it's calling budget-balancing solutions and ended 2025 with $3 million in cash, which slows down the path they were on of running out of money by the summer.
Jeane's message is that progress is happening.
"I was excited when I began to hear what was coming," he said. "Do we have everything solved? No. Are we committed to doing that? Yes."
Jeane sent a letter to families in the district, saying they're going to make the hard decisions to keep control local. The conversations and cuts are far from over.
