Frequently Asked Questions about the Budget

• Preguntas más frecuentes (FAQs) sobre el presupuesto

How is the SFUSD budget determined?

Each year the superintendent seeks feedback from schools, district departments, the unions and the community. Using this input the district develops a budget proposal based on the amount of funding we can expect from the State and other sources. The Board of Education reviews the proposal, and, ultimately, the Board decides whether or not to approve or amend it. This is true for all California school districts.

Are some schools within the district funded differently than others? Why? How is this determined?

Schools get most of their funding through a budget system called the Weighted Student Formula. With this system, a school receives funding based on the specific characteristics of the students who attend that school. This is done because we know that some students have circumstances that pose unique challenges for their academic success, so we send extra funding to their schools to better support them. For example, a student from a low-income household who qualifies for free lunch or a student who is an English Language Learner would carry extra funding to a school site. From there, the school community develops its own budget to best serve the needs of its specific students.

What happens to the money that doesn’t go directly to school site budgets?

Some of the money supports the basic operations of the district like human resources or accounting services. But a significant portion of the central budget supports staff that work at schools. For example, the cost of custodians is budgeted centrally, but custodians work at school sites and are a part of school communities. The same is true for student nutrition workers, after-school coordinators and school nurses. Some of these staff members serve multiple schools, so it makes more sense for them to be paid by a central budget rather than across multiple school budgets.

In the event of budget cuts, why might a teacher from my child’s school be laid off and replaced by a more senior teacher from another school?

Under California law, school districts must determine all certificated layoffs based on employees’ seniority and credentials, not by their performance. This layoff process is the same for all staff positions that require a credential, such as teachers, nurses and counselors. When the district is faced with significant budget cuts, and must reduce particular kinds of services, it can set into motion a "bumping" process where a teacher with more seniority in the school district bumps a less senior teacher at a different school site. The more senior teacher would still be required to have the credential necessary for their new position.

How much money must SFUSD hold in reserve?

By state law, SFUSD must maintain a minimum undesignated reserve in the Unrestricted General Fund equal to 2% of our total General Fund (Unrestricted plus Restricted General Fund) budget. In addition, we must set aside funds for certain required designated reserves, the largest of which is for prepayment of health care premiums to the City’s Health Service System. While our budget for the 2012-2013 school year is not finalized, we project a need for at least $16.9 million in total reserves.

How much money is SFUSD planning to hold in reserve at the end of FY 2011-12, FY 2012-2013 and FY 2013-2014?

Our baseline projections (i.e., the fund balance that would result if no steps were taken to address the budget shortfalls) are that our Unrestricted General Fund (UGF) balance would be $35.3 million, negative $18.6 million, and negative $66.3 million at the end of the three respective years if the Governor’s budget proposal and his tax proposals both pass. At the end of FY 2011-12, we would have $18.7 million in fund balance, which is more than the $16.6 million required. However, we would fall short of our required fund balance in the following two years with a negative balance of $35.5 million and $83.3 million in each respective year.

What is the rationale for holding money in reserve?

As indicated in the table above, SFUSD will quickly draw down all available reserves in the next two years as a result of expenditures that exceed revenues by tens of millions of dollars.

It is especially important now when the State is deferring more and more revenue to pay attention to reserves and cash flow. Low reserves lead to significant pressure in cash flow, and running out of cash is the most immediate path to invite state control.

What constitutes a consultant?

Generally, a consultant is a contracted individual or firm that may be contracted by more than one organization for a specified period of time to provide a specialized service for the organization.

What are the major consultant expenditures in SFUSD?

The largest categories of SFUSD consultant contracts are directed to:

• Transportation (First Student)
• Services for special education students provided by nonpublic schools
• Private providers of Supplemental Educational Services (SES) tutoring required by NCLB for Program Improvement schools
• After-school programs funded by the state After-School Education and Safety (ASES) funds and federal 21st Century Community Learning Centers dollars
• Professional Development
• Technology
• Legal services
• Visual and performing arts (e.g., artists in residence)

Where does the money for consultants come from?

78% of General Fund money spent on consultants comes from specific restricted grant program funding. Most of the remaining 22% goes to pay for legal consultation, audits and other necessary services.

Any additional comments, questions, or suggestions can be emailed to:

budget@sfusd.edu