SFUSD outlines 0‑based budgeting plan and timeline as district faces multi‑year structural deficit

San Francisco Unified School District finance staff told the board on Oct. 26 that the district faces a multi‑year structural deficit driven by rising personnel costs and declining enrollment. Megan Wallace, the district’s chief financial officer, outlined a 0‑based budgeting process intended to prioritize essential services and produce a formal balancing plan for submission to the California Department of Education by February.

Key elements of the plan

- Stakeholder engagement: staff committed to expanded outreach with families, principals, labor and community partners (Parents for Public Schools, Parent Advisory Council, LCAP Task Force) and scheduled committee sessions in November and December to refine proposals.

- Timeline: staff said they will present an initial balancing plan in the Nov. 2 Committee of the Whole, drill into site and central proposals in subsequent November and December meetings, and seek formal board action in mid‑December and file required materials to the state in February.

- Fiscal picture: presentations reviewed prior years’ decisions and noted reserves were drawn down in 2018–20; staff reported deficit projections driven by personnel costs and projected enrollment losses (staff estimated about $25M of the deficit attributable to enrollment decline) and stressed the need for structural decisions.

Board and public response

Public commenters urged the board to make the budget a top priority at future meetings and to use concrete, site‑level examples to show the impact of possible reductions. Commissioners asked for multi‑year projections and clarity on which funding streams support specific programs; several urged that community input be reflected in the final proposals and that LCAP and budget processes be better aligned.

Next steps

Staff will return with a draft balancing plan and more granular options for site and central reductions, including estimates of FTE impact and whether proposals are one‑time or ongoing. The district also announced steps to make public materials and meetings more accessible (translations, engagement sessions) and said FCMAT and a state fiscal expert will support forecasting and process reviews.

Why it matters

The district’s budget outlook will likely influence service levels, staffing and program investments for the coming school year. Commissioners and community members face decisions that will affect classrooms, student supports and central services.

Provenance

Budget presentations and the discussion appear in the transcript between SEG 4360–SEG 4860; public comment on engagement and process appears throughout SEG 4880–SEG 5250.