SFUSD previews 2012–13 budget, proposes flexing $16.5 million in Tier 3 funds amid deep state funding uncertainty

San Francisco Unified School District officials presented a recommended 2012–13 budget and held the statutorily required public hearing on the proposed flexible use of state Tier 3 categorical funds, warning that ongoing state budget uncertainty leaves the district exposed to midyear cuts.

Superintendent Carlos Garcia opened with a blunt assessment of the fiscal outlook, saying the district faces a difficult two-year stretch and that "it's gonna be a real tough year the next 2 years" as state revenues remain uncertain. Budget director Rita Madhavan read the resolution language required by Assembly Bill 189 and Education Code Section 42,605, noting minor corrections to exhibits being distributed.

Deputy Superintendent Myung Lee summarized the staff recommendation and timeline and said staff "recommend that 16 and a half million of the, 62,000,000, that we receive in total Tier 3 funds be flexed, and 41.6 would remain spent or invested in the programmatic areas" outlined in the budget book. Staff said the flexing is intended to give the district flexibility to offset cuts in the unrestricted general fund while preserving investments in priority programs.

Public commenters, including organizers from Coleman Advocates and union representatives, pressed staff for clearer, line‑by‑line crosswalks showing which resource codes would be reduced and by how much. Coleman Advocates’ speaker read multiple resource codes from the agenda and said the available materials did not show how much of each program would be flexed. United Educators likewise asked for clarification about calculations for furlough savings, sabbaticals and other salary offsets in Exhibit 6.

Several board members said the packet was difficult to interpret and requested the more detailed exhibits be published in advance of any decision. Deputy superintendent staff agreed to post a combined exhibit that lists each Tier 3 source, the total amount available, the proposed flexed amount, and the proposed retained amount and to present those items at a special, agendized board meeting next week. Staff also reiterated community engagement plans: two budget community meetings (June 18 at Thurgood Marshall High School and June 21 at Everett Middle School) and budget office hours by appointment.

No final vote on the budget or Tier 3 flexing was taken at this meeting; the board moved the item to a special board meeting and the augmented budget committee for further review before second reading and action on June 26. Staff said they will analyze the enacted state budget after it is finalized and revise site budgets in the fall if needed.