Governor Gavin Newsom's revised budget proposal, unveiled on Thursday, includes a significant allocation of $151.6 billion for TK-12 education programs, reflecting an increase in Proposition 98 funding due to higher-than-expected state tax revenues. However, this financial boost is unlikely to resolve the ongoing budget crisis faced by the Sacramento City Unified School District (SCUSD). According to the Fiscal Crisis and Management Assistance Team (FCMAT), SCUSD could run out of funds by March 2027, a timeline that may only be slightly delayed by the new funding. The district's Board of Education is actively exploring options to avoid state receivership, which would strip local control over budget decisions. Board President Tara Jeane emphasized the district's commitment to controlling costs and increasing cash flow, while also questioning the accuracy of FCMAT's financial projections. The district is working on a Fiscal Solvency Plan and hopes to secure an advance from the state before the end of the legislative session in August. If receivership occurs, the county superintendent would assume control, and the district's leadership would be replaced. FCMAT projects that SCUSD's funding gap could peak at $144.2 million by April 2027, prompting the district to implement cost-reduction measures.