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SFUSD adopts qualified second-interim report and a fiscal-stabilization plan after staff lay out multi-year deficits
Summary
District staff presented a second-interim report showing improvement on the unrestricted side but growing restricted-side deficits projected to reach roughly $126 million by 2028–29; the board adopted a qualified certification and a two-page fiscal-stabilization plan including staff-alignment, central-office reductions and targeted special-ed contract conversions.
San Francisco Unified School District staff presented and the board approved the district’s second-interim fiscal report for 2025–26, certifying the district’s condition as "qualified" and laying out a fiscal stabilization plan (FSP) intended to bring multiyear budgets back into balance.
Deputy superintendent and finance staff told the board that the presentation’s key change since first interim was moving eligible expenses to restricted funds to relieve immediate pressure on the unrestricted general fund. Staff said that shift improved unrestricted projections but produced larger deficits on the restricted side: restricted deficits are projected at $44.5…
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