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CDE fiscal experts and SFUSD staff press urgency on $71M structural deficit, demand verified seniority lists and hiring freeze
Summary
CDE fiscal experts warned that SFUSD faces a structural deficit and urged strict hiring controls, a defensible position-control/seniority list and targeted program pruning. District staff outlined $103M in balancing actions for 2024–25 and additional reductions planned for 2025–26 and 2026–27, while acknowledging risk if promised revenue does not materialize.
CDE fiscal advisors and San Francisco Unified School District leaders told the Board of Education on June 11 that the district faces a structural deficit and must provide detailed, verifiable staffing and seniority information to secure the state's approval of its fiscal stabilization plan.
At the start of the evening, the district's fiscal experts said the summary picture is straightforward but urgent: "It is not being brought to you by the CDE. It is simply a measure of the state of your budget," a CDE presenter stated, describing the negative-certification criteria and warning that without clear, deliberate action the district could face receivership. (Transcript: CDE fiscal expert.)
District financial staff described the year's balancing actions: the district identified $103 million in budget-balancing solutions for 2024–25 through vacancy savings and staffing reductions ($25 million), cuts to consulting and materials ($23 million) and shifting costs to restricted grants (about $40 million), with additional measures including a $10 million reallocation from PEAF to special education assistance. CFO Jackie Chen presented the figures and the multi-year projections that show the unrestricted fund balance drawing down in 2024–25 and beyond.
Superintendent Wayne and fiscal advisors emphasized that the 2024–25 budget submission is contingent on the district's ability to document position control and produce a defensible certificated seniority list. Associate Superintendent Amy Baer told the board the district published a certificated seniority list for verification, corrected more than 500 errors and will continue to update it; outside counsel will review the process to ensure it's defensible in the event of a reduction-in-force challenge.
Board members repeatedly pressed for clearer strategic priorities and a tighter crosswalk between the LCAP, PEAF and the budget. Commissioner Fisher asked how large line items (for example a $17 million pot for coordinated care and chronic absenteeism supports) translate to school-by-school spending and measurable outcomes; staff said additional appendices and dashboards will be provided to show how funds are used and monitored.
CDE and FCMAT representatives urged the board to make decisions about core priorities now and to prepare for deeper reductions in 2025–26 if promised city or state funds do not materialize. "This is one step in a long and very difficult process," one fiscal expert said, calling for discipline, an implementation timeline and direct board oversight of the district's stabilization plan.
The board scheduled further review of the fiscal stabilization plan at the ad hoc committee and committed to additional reporting to the CDE by the June 30 submission deadline for required materials.
