Where Does the
Money Go?
A clear, data-driven look at SFUSD's $1.2 billion budget, explained for parents.
Total Budget
$1.2B
FY 2025-26 operating
Students
48K
Down from 53K in 2019
Per Student
$25K
Per pupil spending
Staff Costs
80%
Of total budget
Cuts (This Year)
$114M
Cuts (Next Year)
$59M
COVID $ Left
$0
$330M+ spent
Peak Enrollment
93K
1967 — nearly 2× today
The core question
Was there a deficit? Is there still one?
From 2020 to 2025, SFUSD's ongoing spending exceeded its recurring revenue every year. Federal COVID money masked the gap. In 2025-26, the district cut $114M to balance the budget for the first time — but $59M more in cuts are needed for 2026-27.
Adopted Budget & Projected Deficit
Source: SFUSD Board of Education press releases and resolutions.
Budget totals from SFUSD Board-adopted budgets (planned spending, not audited actuals). Deficit amounts from Board resolutions and interim financial reports.
Deficit timeline
Projected deficit — Board passes resolution
ESSER funds ($140M) mask the problem
$49M cuts + $76M new revenue sources
Board adopts $103M reduction plan
CDE "Negative" certification, 535 positions cut
$113.8M in cuts → first balanced budget
*Balanced after $114M in cuts. An additional $59M in reductions is planned for 2026-27.
Following the money
For every $1 SFUSD spends
About 80¢ goes to staff compensation (salaries + benefits). Here's the approximate breakdown.
The hidden cost: lifetime retiree healthcare
SFUSD is one of the few districts in California that offers this
Most school districts offer pensions. SFUSD goes further — it provides medical benefits to retirees for life. Only a fraction of California districts offer any retiree healthcare; most that do terminate it at a certain age. San Francisco is one of the few with lifetime coverage.
For decades, the district promised this benefit without setting money aside to pay for it. The result: an unfunded liability of $649 million as of June 2024 (down from $1.04 billion in 2022, largely due to accounting rate changes). This is larger than SFUSD's unfunded pension liability.
Today, the district pays ~$34 million/year in healthcare premiums for current retirees, plus recently started setting aside money into a trust fund (~$50M in FY 2023-24). That's roughly $84 million per year going to retiree obligations — money that isn't reaching current students.
As one analyst put it: "Yesterday's students didn't set aside enough money to pay for their teachers' retirement healthcare, so today's students have to pay for both today's teachers and yesterday's." This will continue for decades until the liability is fully funded.
$649M
Unfunded liability
$84M
Annual cost
~7%
Of total budget
Source: SFEDup analysis of SFUSD 2023-24 Audited Financial Report
The hidden story
The COVID money cliff
$330M+ in federal relief papered over the deficit. It ran out in 2024. That's why cuts are happening now.
Federal COVID Relief (ESSER) by Year
Peak: $140M in 2021-22. Now: $0.
Other financial hits
$35M
Lost to a flawed payroll system
$20M
Cost to replace that system
$30M
Unbudgeted special ed teachers (2024-25)
The demographic shift
Fewer students, same fixed costs
Enrollment is down 7.6% since 2019. But buildings, admin, and infrastructure don't shrink with the student count.
Enrollment vs. Per-Pupil Spending
Per-pupil rises as enrollment falls — but that doesn't mean kids get more.
The human side
The teacher pay question
Teachers can't afford San Francisco. The district can't afford raises. Both things are true.
What the union says
- →Starting salary: ~$79K in a city where 1BR rent is $38K/yr
- →49% of pre-tax income goes to rent alone
- →District's 6% offer over 3 years comes with concessions
- →Asked to give up prep periods and sabbaticals
What the district says
- →80% of budget already goes to staff
- →Just cut $114M to balance the budget
- →Another $59M in cuts coming for 2026-27
- →A 3% annual raise costs ~$20-25M/year
Looking ahead
What comes next
The district has made real progress — upgraded to 'Qualified' certification in Dec 2025. But hard tradeoffs remain.
📉
$59M more in cuts
Fiscal stabilization requires additional reductions in 2026-27 to end deficit spending permanently.
🏫
School consolidations
48K students in ~115 schools. Many are under-enrolled. Consolidation saves money but is politically painful.
🗳️
Local revenue measures
Parcel taxes provide ~$100M/year. Future ballot measures could increase funding — but need voter approval.
🏛️
Funding uncertainty
LCFF depends on state budget health. Federal education funding faces potential cuts. Both are risks.
What parents can do
Informed parents make better advocates.
Read the actual budget documents
They're public. Links below. Don't rely on secondhand summaries.
Attend Board of Education meetings
Budget discussions happen at public meetings. Your voice matters.
Join your school's Site Council or PTA
School-level budgets use the Weighted Student Formula. Your council decides.
Share this report
The more parents who understand the numbers, the better the conversation.
Methodology & caveats
This report uses publicly available data from SFUSD official budget documents, press releases, and board meeting materials.
Estimated: Some FY 2020-21 figures and the spending breakdown are approximated. The dollar breakdown uses SFUSD's stated ~80% staff ratio and typical CA district patterns.
Not included yet: Peer district comparison, school-by-school spending, bond funds, detailed special ed breakdown.
Corrections welcome. If you spot an error or have additional data, please reach out.
Sources
Every number links to an official public document.
FY 2025-26 Adopted Budget
https://www.sfusd.edu/about-sfusd/sfusd-news/press-releases/2025-06-24-sf-board-education-adopts-budget-2025-26-school-year
FY 2024-25 Adopted Budget
https://www.sfusd.edu/about-sfusd/sfusd-news/press-releases/2024-06-27-sf-board-education-adopts-plan-and-budget-2024-25-school-year
FY 2023-24 Adopted Budget
https://www.sfusd.edu/about-sfusd/sfusd-news/press-releases/2023-06-22-sf-board-education-adopts-plan-and-budget-2023-24-school-year
FY 2022-23 Adopted Budget
https://www.sfusd.edu/about-sfusd/sfusd-news/press-releases/2022-06-29-sf-board-education-adopts-plan-and-budget-2022-23-school-year
FY 2021-22 Adopted Budget
https://www.sfusd.edu/about-sfusd/sfusd-news/press-releases/2021-06-23-sf-board-education-approves-budget-2021-22-school-year
FY 2024-25 First Interim Report
https://go.boarddocs.com/ca/sfusd/Board.nsf/files/DBU7D7191213/$file/%5BUpdated-12.10.24-final%5DSFUSD-1st_Interim-24-25.pdf
Budget & LCAP Archives
https://www.sfusd.edu/about-sfusd/budget-and-lcap/budget-and-lcaps-previous-fiscal-years
Budget FAQ (2025-26)
https://www.sfusd.edu/about-sfusd/budget-and-lcap/budget-faqs/budget-faqs-budget-development-2025-26
Dec 2025 Fiscal Milestone
https://www.sfusd.edu/about-sfusd/sfusd-news/press-releases/2025-12-05-sfusd-reaches-major-milestone-restore-local-control
KQED: Teachers Union Strike
https://www.kqed.org/news/12071181/san-francisco-teachers-union-moves-closer-to-a-historic-strike-first-in-more-than-50-years
SFEDup: SFUSD's Biggest Liability (OPEB Analysis)
https://sfeducation.substack.com/p/sfusds-biggest-liability
CDE Current Expense of Education (Audited Expenditures)
https://www.cde.ca.gov/ds/fd/ec/currentexpense.asp
Brookings: Declining Public School Enrollment (Aug 2025)
https://www.brookings.edu/articles/declining-public-school-enrollment/