Sacramento grand jury issues dire financial warning to school districts
Sacramento County school officials may be ignoring mounting debt that could bankrupt districts or leave retirees without health benefits, according to a grand jury report released today.
Twelve of the 13 districts in the county don't have enough money to pay the health benefits promised future retirees and are not setting aside any money to pay them, said the report.
Collectively, the county's school districts owe about $1 billion for retiree health benefits.
"Who is going to tell retired teachers that they have lost their health benefits or tell students and their families that there is no money for school programs?" stated Rosemary Kelley, jury foreperson in a letter accompanying the report.
Even more striking is that some school board members and administrators are unaware of the shortfalls, according to the report. Four districts reported there had been no discussions with their school boards about the unfunded liabilities within the last three years.
"These obligations are not going away, however, because they are ignored," warns the report.
Instead, these liabilities continue to grow, fueled by skyrocketing healthcare costs.
Only two districts - the County Office of Education and Elk Grove Unified - have interest-yielding funds that are used to pay retiree health benefits. But, despite the account, Elk Grove Unified is still underfunded by $244
Twelve of the 13 districts in the county don't have enough money to pay the health benefits promised future retirees and are not setting aside any money to pay them, said the report.
Collectively, the county's school districts owe about $1 billion for retiree health benefits.
"Who is going to tell retired teachers that they have lost their health benefits or tell students and their families that there is no money for school programs?" stated Rosemary Kelley, jury foreperson in a letter accompanying the report.
Even more striking is that some school board members and administrators are unaware of the shortfalls, according to the report. Four districts reported there had been no discussions with their school boards about the unfunded liabilities within the last three years.
"These obligations are not going away, however, because they are ignored," warns the report.
Instead, these liabilities continue to grow, fueled by skyrocketing healthcare costs.
Only two districts - the County Office of Education and Elk Grove Unified - have interest-yielding funds that are used to pay retiree health benefits. But, despite the account, Elk Grove Unified is still underfunded by $244
