Budget FAQs - Budget Development for 2026-27

SFUSD has to send its approved budget to the state by July 1, 2026.

This fall, we are having multiple town halls to talk with the community. There will be more chances to give ideas in the winter and spring, when schools get their budgets.

Because we are still spending more money than we're bringing in, we expect to cut our budget by another $103 million for the 2026-27 school year. We are handling this carefully and transparently, making sure we balance immediate needs with long-term stability.

One reason is that costs are going up, especially for staff and benefits, which make up 85% of our budget. The district also has long-term budget challenges made worse by having fewer students and temporary COVID relief funds that are now gone. These challenges happen in many school districts, not just SFUSD.

While SFUSD is still under state oversight, we have made important progress to improve our finances. Our goal is to reach positive certification by July 1, 2026. To do this, we must show that we can spend within our budget.

Our budget shows what we care about most. SFUSD has set goals, based on data, for reading and math, as well as for more students to be ready for college and careers. Therefore, we're not just talking about what to cut—we’re deciding how to give our schools what they need to help students succeed and meet our goals.

Our goal is to lower costs by not replacing some staff who leave, such as by retiring, and by making changes to how we operate. If layoffs are needed, we will follow all state rules and give notices in the spring. We know this uncertainty can be stressful for employees, and we promise to handle the process with care, transparency and honesty.

SFUSD is working to come out of state oversight, with a goal of earning a positive certification by July 1, 2026. Balancing the budget for next year is a core step in this process The district has made big budget changes, including $114 million in cuts for the 2025-26 school year and a plan to keep finances stable.