SFUSD Labor Fact-Finding Report Reaffirms District’s Commitment to Fair, Responsible Agreement

San Francisco (February 4, 2026) - Today, the San Francisco Unified School District (SFUSD) and United Educators of San Francisco (UESF) received an independent fact-finding report issued as part of the collective bargaining process. The report provides neutral, expert recommendations intended to help both parties work toward a fair and financially responsible agreement.

SFUSD and United Educators of San Francisco (UESF) have been engaged in negotiations since March 2025. While SFUSD deeply values its educators, the district is also grappling with a dire fiscal reality. After months of bargaining, SFUSD and UESF declared an impasse and entered in fact-finding. Fact-finding took place on Jan. 23, in which independent experts reviewed information and compiled recommendations to help both sides work toward a fair and financially responsible agreement.

The Fact-Finding Report echoed the district’s long-standing position that SFUSD remains in a dire fiscal situation. While the district has recently reported progress toward a qualified financial certification, it remains under state oversight and subject to strict scrutiny of any budgetary decisions.

“This is a credible, fair report that offers transparency and affirms the District’s financial position,” said SFUSD Superintendent Dr. Maria Su. “We do not want a strike. Our goal continues to be to keep our children in classrooms. I remain hopeful that our labor partners will return to the bargaining table so that we can review this report and avoid any disruption to student learning.”

Key Findings from the Fact-Finding Report

The Panel found that:

• A 9% wage increase combined with full dependent health benefits, which UESF has requested, is not budget-neutral and would likely be rejected by the state. 
   
• UESF did not meet its burden of proof to demonstrate that the district has sufficient unrestricted resources to pay for the requested increases.
   
• Despite progress toward improved certification, SFUSD remains under state oversight, making a conservative fiscal approach necessary.
   

Based on the financial data presented, the Panel recommends a 3% wage increase effective July 1, 2025, followed by an additional 3% increase on July 1, 2026. 

Special Education and Workload Reform

The Panel also recommended that the district develop a pilot program involving three elementary schools, one middle school, and one high school to transition Special Education teachers from a caseload-based model to a workload-based model. The Panel emphasized the need to better support this group of educators, and encouraged reallocating funds currently spent on consultants and contracting out to support this effort.

Dependent Health Benefits

The Panel recognized UESF’s commitment to securing full dependent health benefits, but concluded that such benefits are not feasible at this time due to the district’s financial status. However, the Panel encouraged the parties to use existing parcel tax funds as a temporary solution, with the potential for extension, creating a pathway to making the benefit long-term once the district is no longer under state scrutiny. During fact-finding, SFUSD proposed funded family healthcare to UESF members and remains committed to discussing healthcare as a priority with UESF.

Sanctuary and Immigration-Related Issues

The Panel agreed with the shared values of both parties regarding support for immigrant and unhoused students and families, particularly in light of recent events that have heightened fear within communities. However, it found that UESF’s proposed language is not a mandatory subject of bargaining and would expose the district to significant liability. Instead, the Panel recommended that the district and UESF jointly memorialize their commitment to being a Sanctuary District through a separate resolution outside of the collective bargaining agreement.

What This Means

The Panel underscored that SFUSD remains in a precarious financial position and that any budgetary changes must continue to receive state approval until a positive certification is achieved. It also noted that while UESF has already voted to authorize a strike—an action not taken in this district in more than 50 years—the fact-finding process presents an opportunity to reach a compromise that is fiscally achievable and in the best interest of students, educators, and the broader community.

Next Steps

While SFUSD’s goal continues to be to avoid a strike and is ready to sit down at the table with UESF, on Tuesday night the San Francisco Board of Education approved a resolution granting Superintendent Dr. Maria Su limited emergency authority in the event of a strike. The resolution approved is a preparedness measure designed to ensure the district can respond quickly to protect students and maintain safe, orderly school operations if needed.

Access the report here.

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