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District lays out two budget scenarios as state proposals evolve
Summary
Deputy Superintendent Myung Lee briefed the board on the governor’s budget proposal and two district planning scenarios: a ‘Scenario A’ assuming tax‑extension passage and flat K–12 funding, and a ‘Scenario B’ that would trigger deeper cuts; staff described potential per‑student shortfalls, the timing for layoff notices and the need for schools to prepare site‑based budgets.
Deputy Superintendent Myung Lee gave the board an overview of the governor’s proposed state budget and what it could mean for SFUSD.
Lee said the governor’s package attempts to close a roughly $26.7 billion state shortfall with a mix of program cuts, service shifts, one‑time actions and proposed extensions of temporary tax increases. For the district the two planning scenarios mean different next steps: Scenario A assumes the taxes are extended and K–12 funding remains flat (but without statutory COLA), leaving the district to plan for a modest per‑ADA reduction; Scenario B assumes the package fails and would require an additional estimated $330 per ADA on top of other shortfalls.
Lee quantified the district impact in headline figures: under a more optimistic projection the district would face an approximate $65 million gap relative to full COLA expectations; the alternative scenario could raise the shortfall to roughly $83 million based on current estimates. He reminded the board that if legislative and voter actions do not occur the district could be required to issue certificated layoff notices (March 15 preliminary notices) and to prepare two versions of site budgets for submission by March 24.
"If those two things do not come to pass, then it's estimated that an additional $9,000,000,000 in expenditure cuts would be needed," Lee said, explaining the statewide context and the potential local consequences. He also summarized longer‑term context showing that K–12 has taken a disproportionate share of cuts in recent years and that the district faces structural funding pressure even under the governor’s proposal.
Board members asked about the timeline for legislative action and how the district would communicate options and tradeoffs with schools; Lee said decisions about a June special election and legislative actions will become clearer in March and that the district must proceed with planning while preserving flexibility.
Next steps: schools will prepare two site budgets (one for Scenario A, one for Scenario B); staff will issue preliminary layoff notices as required by law if fiscal indicators do not improve and will return to the board with revised recommendations after the governor’s May revise.
