Press Release Details
Press Release Message
San Francisco (March 12, 2026) - San Francisco Unified School District (SFUSD) Superintendent Dr. Maria Su shared several key financial updates and strategic plans to the Board of Education at its regular meeting Tuesday, highlighting both progress in financial oversight and the continued work needed to ensure the district’s long-term fiscal stability.
District leaders presented the Second Interim Budget Report, a financial update required of all California school districts that outlines changes to funding, expenditures, and overall financial outlook. The report includes projections for the current school year and the following two fiscal years.
The Second Interim Report showed that SFUSD continued to face an ongoing gap between the funding the district receives and the cost of operating its schools. Without continued action to address this gap, the district’s financial reserves will decline over time.
At the same time, the report reflected improvements in the district’s budget practices and financial oversight. SFUSD and the California Department of Education certified its First Interim budget with a qualified certification, one of three possible ratings used by the state to assess district financial conditions—negative, qualified, or positive. A qualified certification indicates that while the district had made steady progress toward responsible financial management and greater transparency, additional work remained to ensure long-term fiscal health.
“As we look ahead, our team is continuing to explore strategies that could better align district resources with our student outcome goals and the number of students we serve,” SFUSD Superintendent Dr. Maria Su said. “We are committed to working closely with our students, families, staff, and the broader community to ensure that our district is financially stable and stays laser focused on student success.”
Several key updates since the First Interim Report was presented in December 2025 were included in the latest report, including:
- Updated funding projections based on the Governor’s proposed state budget
- Reductions in Central Office spending, including some contracts
- Changes in student enrollment and attendance
- Costs associated with new agreements with labor partners, including the United Educators of San Francisco (UESF), Common Crafts, and Local 6
- Savings resulting from positions that remained vacant for the year
- The shifting of eligible expenses to restricted funding sources in the 2026-27 and 2027-28 school years
Approval of Tentative Agreements
Also on Tuesday, the Board of Education unanimously approved tentative agreements with the United Educators of San Francisco (UESF) and the Common Crafts labor units. District leaders said the agreements reflected SFUSD’s continued commitment to supporting the educators and staff who serve students and schools each day.
Updated Fiscal Stabilization Plan
In addition, the district presented an updated Fiscal Stabilization Plan. The plan outlined the steps SFUSD is taking to strengthen its financial foundation while maintaining a focus on improving student outcomes. The goal of the plan is to better align district resources with academic priorities and educational supports students need to succeed.
Several cost-saving steps outlined in the plan were already underway, including:
- Reductions in Central Office spending
- Aligning staffing levels with projected student enrollment
- Shifting eligible expenses to restricted programs
The district is also working toward several program updates for the upcoming school year. SFUSD plans to increase instructional minutes so students spend more time in the classroom and will maintain a seven-period day for middle grades to ensure students continue to have access to a broad range of courses and offerings.
Staffing allocations and school budgets for the 2026-27 school year are also nearing completion. District officials noted that these decisions are complex and are guided by a commitment to equity, stability, and strong academic programs across all schools.
SFUSD leaders emphasized their continued commitment to transparency and community engagement as the district works to strengthen its financial outlook while supporting students, educators, and families across San Francisco.
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