SF Board of Education Adopts Three-Year Balanced Budget for 2026-27 School Year

San Francisco (June 25, 2026) - The San Francisco Board of Education approved a balanced budget in a 4 - 3 vote for the upcoming school year that meets its financial obligations in the current and next two fiscal years. This budget will support student learning while continuing to ensure the district stays on its fiscally responsible track. 

On Tuesday, June 23, the Board of Education adopted its 2024-27 Local Control and Accountability Plan (LCAP) and $1.36 billion total operating budget for the San Francisco Unified School District (SFUSD) for the 2026-27 school year. With the adoption of this budget, SFUSD will self-certify a positive budget to submit to the California Department of Education (CDE), demonstrating that the district can meet its financial obligations in the current and following two fiscal years.

County offices of education, school districts and charter schools are required to adopt a three-year LCAP and update this plan annually. In addition, SFUSD must send its approved budget to the state by July 1.

“Adopting a balanced budget and being able to self certify a positive budget marks an important milestone in SFUSD's fiscal stabilization efforts,” SFUSD Superintendent Dr. Maria Su said. “This budget reflects our commitment to responsible stewardship of public resources while continuing to invest in the strategies and supports that help our students thrive. We remain focused on building a strong, sustainable future for our schools and the communities we serve.”

The budget delivers on three key values:

• Fiscal Operational Improvements: The District has implemented significant fiscal operational improvements that have reduced projected expenditures and increased its unrestricted and unassigned ending balance. Through more accurate budgeting practices, including improved projections of compensation costs for filled positions, SFUSD has identified savings and efficiencies that strengthen its financial position.
• Commitments to uphold new requirements and protect students and staff against federal uncertainties: Staff recommend committing $33.3 million to address emerging needs and protect students and staff. This includes $8.6 million to fund a new mandate providing up to 14 weeks of paid pregnancy leave for employees beginning in the 2026-27 school year, $12.2 million to protect against potential federal funding risks and grant freezes, and $12.5 million to support student success strategies, including reducing chronic absenteeism, improving outcomes for focal student populations, professional development for educators and administrators, educator recruitment and retention, and implementing career pathways for future Special Education and Multilingual teachers.
• Transparency of resources to improve student outcomes with Key Initiatives and Budget Alignment: The District has developed a Strategic Actions Companion document to accompany the 2026-27 LCAP update and budget, providing the public with a transparent view of how resources are aligned to the district's Vision, Values, Goals, and Guardrails and the strategies designed to improve student outcomes.

The district’s structural deficit in the Unrestricted General Fund is projected to be eliminated in the 2027-28 school year. SFUSD remains committed to proactively managing its resources while ensuring that schools, educators, staff, and students have the support they need to maintain the high-quality educational programs valued by the community. The District will continue working with stakeholders to identify efficiencies and pursue opportunities that strengthen its financial sustainability while advancing student success.

“This budget demonstrates that we can make the tough decisions that put us back on track,” said SF Board of Education President Phil Kim. “We have put SFUSD on a stronger financial footing to reach this balanced budget. The Board remains committed to transparency and accountability, ensuring that every dollar is aligned with improving outcomes for students.”

Local Control Funding Formula and LCAP

California’s LCFF, enacted in 2013-14, replaced the previous kindergarten through 12th grade (K–12) revenue limit funding methodology, and gave school districts serving high-needs students more funds in the form of supplemental and concentration grants, based on the number and percentages of high-needs students they serve. School districts are also required to adopt Local Control and Accountability Plans (LCAPs), which are plans to show how districts will spend the supplemental funds to support their high-needs students. Each year, parents, students, labor partners, and community members are given the opportunity to provide feedback and help shape SFUSD’s LCAP. 

Budget Stabilization Background 

In 2021, the CDE appointed two state fiscal experts to support the district in fiscal stabilization. In May 2024, SFUSD received notice from the CDE that it revised the certification of SFUSD’s budget report from “Qualified” to “Negative.” In March 2026, SFUSD and the California Department of Education certified its First Interim projection with a “Qualified” certification. A “Qualified” certification indicated that while the District had made steady progress toward responsible financial management and greater transparency, additional work remained to ensure long-term fiscal health. SFUSD has now continued to demonstrate diligence in addressing fiscal challenges to avoid further state oversight and is excited to move from a “Qualified” to “Positive” certification.

Learn more about the SFUSD Budget and LCAP.

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