SFUSD delays vote on second interim budget after public calls for transparency; CFO forecasts $22.6 million shortfall

Meghan Wallace, the San Francisco Unified School District chief financial officer, told the board on March 10 that the district is forecasting a $22,600,000 shortfall for fiscal year 2019–20 and anticipates larger multi‑year deficits ahead.

Wallace presented the district's second interim report, saying it reflects improved revenue assumptions — including a $3.4 million boost to the local control funding formula (LCFF) and an estimated $3.8 million uptick in sales tax — but continued expenditure growth, especially in special education and leave costs. "Now we're forecasting a $22,600,000 shortfall this fiscal year," Wallace said in the presentation.

The report compared earlier worst‑case estimates (as high as $31.8 million) with the current forecast and outlined options the district is pursuing: one‑time funding shifts, reprioritizing restricted funds, targeted non‑personnel savings and identifying new revenue sources for future years. Wallace said the district has $11.4 million of unidentified district‑wide solutions still to find for fiscal year 2020–21 and that longer‑term gaps of roughly $57.2 million and $95.2 million could appear in subsequent years.

Union leaders, teachers and parent representatives urged the board not to approve the certification without more detailed budget documents. "I don't understand how the board can vote tonight on this," said Susan Solomon, president of United Educators of San Francisco, noting unions had not received full budget reports necessary for contract bargaining and review. A SEIU representative told the board: "Please postpone this vote because there is not the transparency that is needed in the public arena."

Board members sought clarity about timelines and legal obligations. Deputy Superintendent Lee and Wallace explained that the second interim report is submitted to the California Department of Education and that the formal deadline is March 17, though staff said there can be some leeway. Wallace said a draft of the report would be posted online and hard copies made available so the public and unions could review the numbers.

Given the requests for additional review and the remaining questions about potential penalties for a delayed submission, the board agreed to postpone a vote on the fiscal certification and to confirm with the California Department of Education whether a short delay would carry consequences or require a special meeting.

What's next: staff said school sites will continue budget development (site budgets due March 27; central office aiming for March 20) and the board's Budget and Business Services committee will examine details in coming weeks. The board did not take a final vote on certification at the March 10 meeting.