Property owners inside Sacramento City Unified School District boundaries will decide next month whether to add $95 a year to their tax bills to help cover the district's special education costs. Measure M, which requires a two-thirds supermajority to pass, is expected to generate roughly $10 million annually for special education and early support services across the district.
The measure would take effect July 1, 2027 if voters approve it, and the SCUSD Board of Education approved placing it on the ballot in July 2026. As reported by the Sacramento Bee, the tax starts at $95 per parcel, and starting in its second fiscal year, it includes an annual inflation adjustment that caps rate increases at either the Consumer Price Index change or a maximum of 3% per year, according to Sacramento County Voter Registration & Elections. The district covers much of Sacramento south of the American River and extends east toward Rancho Cordova, per the same account.
Measure M includes exemptions for some seniors and people receiving disability benefits. County Counsel's impartial analysis specifies that property owners qualify for the exemption if they are 65 or older, receive Supplemental Security Income, or receive Social Security Disability Insurance — provided their annual income does not exceed 250% of the 2012 federal poverty guidelines, with qualified owners required to apply and occupy the property as their primary residence.
Why Special Education Costs Keep Climbing
The parcel tax arrives as California special education costs rise rapidly and now rank among the fastest-growing expenses for school districts statewide, the Sacramento Bee's reporting notes. Federal funding covers only about 12% of special education costs in California, even though the Individuals with Disabilities Education Act establishes a 40% federal funding share target. Supporters of Measure M argue early intervention could reduce per-student costs over time, while opponents counter that property owners already face rising costs and that the district should use existing resources instead.
That funding gap is central to the district's broader crisis. As of August 15, 2026, the Sacramento County Office of Education estimated SCUSD faced a $227 million budget deficit, putting the district under threat of state takeover if financial targets are missed, according to CapRadio. California Department of Education data cited by the Sacramento Observer shows SCUSD enrolled 5,970 students with disabilities during the 2022–2023 school year, roughly 14% of total enrollment.
A Financial Recovery Plan Already in Motion
Measure M is one piece of a larger financial recovery effort. On July 30, 2026, the SCUSD Board of Education approved a $158.6 million fiscal solvency plan, incorporating $78 million in operational cuts alongside $48 million drawn from a retiree health benefit trust, according to Formative Spaces. County education officials had initially blocked a $98 million budget deal between SCUSD and its teachers union in August 2026 over financial risk concerns, forcing district leaders to appeal to California State Superintendent Tony Thurmond to negotiate a revised agreement, ABC10 reported.
That history of financial strain traces back further. A district financial review found SCUSD accumulated $62 million in unbudgeted spending during the 2024–2025 school year, with 98% of those unauthorized contract purchases occurring within the special education department, according to the California Globe. Hoodline previously reported on the fallout from that unbudgeted consultant spending and the whistleblower investigation it triggered.
Money Flowing on Both Sides of the Campaign
The campaign has drawn significant outside money. The California Teachers Association has contributed more than $470,800 to the committee supporting Measure M, while the Sacramento City Teachers Association has put in at least $60,000 for the same effort. On the opposing side, the California Association of Realtors Issues Mobilization Political Action Committee has contributed at least $200,000 to the committee fighting the measure.
The National Education Association, which represents 3 million members nationwide, endorsed Measure M. NEA President Princess Moss endorsed the measure in September 2026, saying of the federal funding shortfall for special education, “that gap doesn't disappear.”
No Contested School Board Races This Fall
Measure M will be essentially the only mechanism Sacramento voters have this fall to weigh in on SCUSD's financial stewardship. Three SCUSD board trustees — Tara Jeane, Jasjit Singh, and Taylor Kayatta — are returning to office unopposed in November 2026 under California Education Code Section 5326, which allows uncontested candidates to be appointed without appearing on the ballot, per CapRadio's reporting.
The district also remains under state scrutiny on a separate front. In January 2026, the California Department of Justice and Attorney General Rob Bonta announced a settlement with SCUSD following an investigation that found district enrollment and transfer practices unfairly disadvantaged students with disabilities and minority students, according to the California Department of Justice. Under the state constitution, Measure M still needs that two-thirds supermajority of voters under Article XIII C, Section 2(d), a threshold added by Proposition 218 to limit local tax increases.
