Summary SFUSD Fiscal and Operational Health Update

#pubicschoollove

The San Francisco Unified School District (SFUSD) is facing a budget deficit of $57.9 million (unrestricted) for the 2025-2026 school year according to Fiscal and Operational Health Update. Although a deficit, 51.9 million (unrestricted) was reported at the January 28th Board of Education Meeting, a difference of 6 million.

This shortfall comes despite having $669.3 million in unrestricted general funds allocated for district-wide base expenses. The projected expenses, even after accounting for various funding sources like the PEEF (Proposition 30 Education Funding) and QTEA (Quality Teacher and Education Act), reach $727.2 million. This leaves a substantial gap that needs addressing.

Reasons for the Deficit:

The primary reason for the projected deficit is a mismatch between projected expenditures and available revenue. The presentation included graphs illustrating a steady increase in expenditures over several years, exceeding the growth in revenue.

SFUSD's Budget Balancing Strategies:

To address the deficit, SFUSD is implementing a multi-pronged approach:

1. Central Office Reductions: A significant portion of the budget-balancing plan involves reducing costs within the central office. This includes a planned $20 million reduction in unrestricted general funds and additional cuts to restricted funds. Specific staff roles may see reductions of 20% to 100% of their positions.

2. Supplemental Employee Retirement Plan (SERP): SFUSD is proactively pursuing a SERP to help reduce the potential for widespread layoffs. This plan offers employees an incentive to retire early, helping to reduce personnel costs. This is a key strategy to minimize the impact on teaching and support staff. Sustainable Staffing and Budget Allocation: SFUSD is developing a new model for staffing and budget allocation that aims to be sustainable, ensuring the continuation of essential services while managing resources effectively. This involves careful review and allocation of funds across various departments and programs.

3. Prioritization of Essential Services: The district intends to focus resources on maintaining essential services for students. This includes prioritizing personnel in key roles such as principals, teachers, and support staff directly involved in student instruction and well-being. Items like substitutes and leaves, transportation, student nutrition, facilities maintenance, and other vital services are being carefully considered.

Potential Impacts and Uncertainties:

While the SERP is intended to mitigate the need for layoffs, the possibility remains. The presentation highlighted several "unknown variables" that could influence the final budget, including the state budget and the ultimate success of the SERP. The final budget will be heavily influenced by these factors.

Timeline and Next Steps:

The presentation included a timeline outlining key dates for budget development and approval. This includes deadlines for various reports, the Governor’s May Revise budget proposal, and the final adoption of the 2025-2026 SFUSD budget in June.

For Parents for Public Schools of San Francisco:

This situation underscores the importance of engaging with SFUSD to understand the implications for our children's schools. Staying informed about the budget process and its potential consequences will be vital in the coming months. Attending school board meetings and contacting school officials to voice your cares is encouraged.

References:

SFUSD Fiscal and Operations Update 2/11/25 here

SFUSD Staffing Model 1/28/25 here