SACRAMENTO (CBS13) — The Sacramento City Unified School District has rejected a budget proposal from the Sacramento City Teachers Association.

The Teachers Association submitted their proposal at a meeting Thursday night with the district. The association discussed a proposal with district leaders to save $60 million, cutting health care spending and keeping benefits.

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That proposal was rejected by the district Friday, according to the teachers association.

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This comes after the district acknowledged that they are in danger of going bankrupt by next November.

The state Fiscal Crisis Management Assistance Team (FCMAT) was present at the meeting Thursday and warned that the district has no time to waste in finding budget solutions.

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They must take immediate action to implement cost-saving measures into multiple areas of the district.