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Behind the Numbers: How SFUSD Is Navigating a $114 Million Deficit Without Teacher Layoffs

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DNPL Services

May 13, 2025 12 Minutes Read

Behind the Numbers: How SFUSD Is Navigating a $114 Million Deficit Without Teacher Layoffs Cover

I still remember the chaotic energy that comes with the last bell of the school year — but this spring, the air is thick with anxiety for San Francisco’s educators and families. When I bumped into a teacher friend at the local library, her smile cracked as she whispered, "We're all just waiting for the other shoe to drop." This year, 'budget season' is more than spreadsheets — it's real people, real programs, and real kids at stake. Let’s dig into how SFUSD is wrestling with a $114 million deficit — and what it means for your neighborhood school.

The Anatomy of a $114 Million Deficit

San Francisco's school district is facing a financial crisis of historic proportions. The $114 million deficit looming over SFUSD has forced administrators into a corner, demanding painful budget decisions that affect thousands of students and staff.

Breaking Down the Budget Crisis

How does a school district dig itself out of a $114 million hole? That's the question keeping SFUSD leadership up at night. The district's annual budget of $1.2 billion sounds substantial until you realize where it's all going.

Here's the uncomfortable math: 85% of that budget is locked into staffing costs. Salaries and benefits. That leaves precious little flexibility for adjustments without affecting people's livelihoods.

The financial squeeze comes from a perfect storm of challenges:

  • Shrinking enrollment (fewer students = less state funding)
  • Rising operational costs across the board
  • Previous fiscal missteps that invited state scrutiny

The Human Impact of Budget Cuts

By May 15, final layoff notices will reach district employees. The surprising twist? Classroom teachers have been spared the ax.

"We have over 280 educators on temporary contracts who have been released," reports Frank Lara, Executive Vice President of United Educators of San Francisco. The pain doesn't stop there - counselors and support staff face uncertain futures.

Superintendent Maria Su has made the difficult call to protect teacher positions while cutting elsewhere. It's a calculated gamble to maintain educational continuity for students.

State Oversight Tightens

When your financial house isn't in order, expect visitors. The California Department of Education has placed SFUSD under elevated oversight, requiring regular budget updates and approvals for major decisions.

This increased supervision follows years of financial struggles. Only recently did the state lift a hiring freeze on teachers after reviewing the district's budget remediation plans.

What does this mean for you? If you're a parent with children in San Francisco schools, expect:

  • Potential reductions in special programs
  • Fewer counselors and support staff
  • Possible consolidation of services

The silver lining? Your child's classroom teacher should remain in place, providing some stability amid the turbulence.

The Path Forward

Superintendent Su acknowledges the road ahead remains challenging: "While we are making progress, we are not out of the woods yet. We will have to reduce, pause and in some cases eliminate entire programs."

Parents understandably want assurances about next year. As difficult as these cuts are, they represent necessary steps toward financial sustainability for a district that has struggled to balance its books.

The May 15 deadline looms large. For many district employees, it marks the difference between continued employment and an uncertain future.


Superintendent Maria Su's No-Teacher-Layoff Gambit

In the midst of SFUSD's daunting $114 million deficit, newly appointed Superintendent Maria Su has drawn a bold line in the sand: classroom teachers will not face layoffs, even as other positions face the chopping block.

"I'm adamant that we will not and should not lay off any of our teachers," Su declared firmly, emphasizing her commitment to keeping educators in classrooms where students need them most.

The Balancing Act

How exactly is Su managing this seemingly impossible feat? It's a calculated gambit that relies on several moving parts:

  • Early retirement incentives created natural vacancies without forcing layoffs
  • Strategic reallocation of resources from central office to classrooms
  • Selective rehiring based on immediate classroom needs

But this strategy comes with significant tradeoffs. While teachers remain in classrooms, other vital support roles face uncertainty.

By the Numbers: Who's Affected?

The impact of Su's approach is clearly visible in the staffing changes:

  • 280 educators on temporary contracts released
  • 34 counselors rehired (but many still waiting)
  • 129 paraeducators not yet rehired
  • 162 vacant classrooms currently being filled
  • 150 additional vacancies still open

Frank Lara, Executive Vice President of United Educators of San Francisco, expressed concern: "We have over 280 educators on temporary contracts who have been released... There are 129 paraeducators that haven't been hired."

The Long Game

Su's strategy isn't just about avoiding teacher layoffs now—it's about positioning the district for recovery. With California recently lifting the hiring freeze on teachers after reviewing SFUSD's budget progress, the superintendent sees an opportunity.

Her plan? Many of those same staff members who received layoff notices might soon be invited back to fill the 162 vacant classrooms currently being staffed and potentially the 150 additional openings.

It's a risky maneuver, but one Su feels is necessary.

"While we are making progress, we are not out of the woods yet," Su acknowledged during her budget presentation. "We will have to reduce, pause and in some cases eliminate entire programs and services throughout the district."

Parents Caught in the Middle

For families, the staffing uncertainty creates anxiety about next year.

"While we understand that the district needs to get its finances in place, it is also really hard when you hear that your teacher's job may be at stake, or a special program at a school may be at stake," explained Meredith Dodson with SF Parent Coalition.

Parents simply want stability—teachers present and accounted for, without principals scrambling for substitutes or staff stretched between multiple classrooms.

As the May 15 deadline for final layoff notices approaches, Su's gambit will face its ultimate test: can SFUSD truly protect its classrooms while navigating the choppy waters of fiscal crisis?


Unintended Consequences — What's Lost When Support Staff Go

While teachers' jobs appear safe in SFUSD's budget crisis, the ripple effects of cutbacks are already being felt throughout the district. The $114 million deficit solution comes with a painful trade-off: protecting classroom teachers means significant reductions elsewhere.

The Hidden Casualties

Teacher layoffs may have been avoided, but the news isn't so bright for other vital roles. Support staff — the backbone of daily school operations — are facing the brunt of the cuts:

  • 129 paraeducators are currently without positions
  • 34 counselors have been rehired, but many more remain in limbo
  • Over 280 educators on temporary contracts have been released

"It's really hard when you hear your teacher's job or a special program may be at stake, or reduce nursing hours," explains Meredith Dodson with SF Parent Coalition, highlighting the anxiety felt across the district.

First on the Chopping Block

Special programs, nursing hours, and essential student services are among the first casualties in budget crises. These cuts disproportionately affect the most vulnerable student populations.

School counselors and paraeducators often serve at-risk students who need specialized attention. When these positions disappear, so does crucial mental health support, special needs services, and after-school programming that keeps many students engaged.

Superintendent Maria Su acknowledged this difficult reality: "We are separating and laying off some of our counselors, paraeducators, and some of our central office employees, but all of that together will allow us to not lay off teachers as well as meet the budget reduction."

Scrambling for Next Year

The timing couldn't be worse for school principals. With support staff departures confirmed, administrators are now frantically trying to patch together plans for the coming school year.

How do you run a school when your counseling department is decimated? What happens when special programs disappear? These questions keep principals up at night.

Calls for Stability

Union leaders and parents alike are raising alarm bells about these "patchwork" solutions.

Frank Lara, Executive Vice President of United Educators of San Francisco, put it bluntly: "We have 34 counselors who have been rehired. There are 129 paraeducators that haven't been hired... our members are not sticking around."

Parents echo these concerns about stability. Yvette Edwards from SF Parent Coalition emphasized that staff need to "have the space to be able to do their jobs appropriately and they are not running around to different classrooms, principals aren't looking for subs. These are things that are essential."

While the district struggles to balance its books, these less visible cuts could have lasting impacts on student success and school climate for years to come.


Why Didn't We See This Coming?

The $114 million deficit facing San Francisco Unified School District didn't appear overnight. Instead, it's been brewing for years—a perfect storm of challenges that somehow flew under the radar until reaching crisis levels.

A Perfect Storm Years in the Making

If you're wondering how SFUSD landed in this precarious position, you're not alone. The truth is that this financial crisis has been slowly building through a combination of:

  • Declining enrollment that has steadily eroded per-student funding
  • Escalating labor costs despite diminishing resources
  • Warning signs that went unheeded or unnoticed for far too long

It's like watching storm clouds gather on the horizon but failing to prepare until the downpour begins.

Increased State Supervision

This isn't the first time SFUSD has struggled with its finances. Previous budgeting missteps prompted state officials to implement elevated oversight—a clear sign that financial troubles weren't new to the district.

Now, SFUSD must present regular budget updates to the school board as a requirement under this increased supervision. These checkpoints are designed to ensure the district stays on track with its financial recovery plan.

Communication Breakdown

Many stakeholders point to poor communication as a major contributor to the crisis. Union leaders feel particularly left in the dark about the district's plans and decisions.

"We hear the district is speaking to the public about something, but our members are not sticking around," said Frank Lara, Executive Vice President of United Educators of San Francisco.

This communication gap hasn't just affected staff—parents and community members have also struggled to understand the full picture of SFUSD's financial situation until it reached crisis levels.

A Thought Experiment

Here's something to consider: What if school district budgeting was as transparent and straightforward as your household finances?

Imagine if you could see exactly where every dollar went, with clear warnings when spending exceeded income. Would the district have reached this point? Probably not.

Instead, complex budgeting processes, structural deficits, and institutional inertia created an environment where problems could compound without sufficient public awareness or intervention.

The current crisis isn't just about numbers—it's about a system that failed to communicate clearly, address warning signs proactively, and adapt to changing demographic realities. Now everyone—teachers, students, parents, and administrators—must deal with the fallout together.


Parents and Principals: Bracing for the New Normal

The hallways may still look the same, but the atmosphere in San Francisco schools is anything but normal. As SFUSD grapples with its massive deficit, it's the families and school leaders who are now left wondering what daily life will actually look like when the bell rings next fall.

The Daily Struggle

Uncertainty looms large for families across the district. While teachers have been spared from layoffs, the support structure around them is crumbling. Principals are already scrambling for substitutes, and parents fear a patchwork coverage system that will leave their children's education fragmented.

What happens when a school loses its counselors? Or when special programs get cut? These aren't abstract budget lines—they're real services that children depend on.

"Have the space to be able to do their jobs appropriately...these are things that are essential," says Yvette Edwards, SF Parent Coalition co-founder. She's voicing what many parents feel: essential services shouldn't be considered optional.

Beyond Warm Bodies

Parents aren't just worried about empty classrooms. They're calling for stability, not bandaids, in their children's learning environments. Having someone in the classroom isn't the same as having proper staffing with qualified personnel who know the students and curriculum.

The daily disruptions are taking a toll—finding coverage for absent staff, maintaining quality programs with fewer resources, and trying to provide consistency for students already dealing with post-pandemic learning challenges.

Creative Solutions Under Pressure

With shrinking support teams, principals and teachers are now forced to wear even more hats. One teacher might cover multiple subjects. Administrators might step in to counsel students. Programs might be combined or alternated throughout the week.

These makeshift solutions showcase educator dedication but raise questions about sustainability. How long can schools operate in this perpetual state of adaptation before burnout sets in?

The Tech Sector Wild Card

An interesting possibility hovers on the horizon: What if tech companies step in to sponsor mental health aid or after-school programs? With San Francisco's unique position as a tech hub, could local industry partners offer a lifeline?

Some support staff may eventually be rehired, but the lingering instability is expected to continue. The tech sector's local influence could play a crucial role in future support, especially for programs that address student wellbeing and enrichment.

For now, parents and principals share the same urgent concern: finding long-term stability rather than temporary fixes. They're bracing for a "new normal" that nobody wanted but everyone must navigate—one where creativity and community support will be essential to fill the gaps left by budget cuts.

As one parent put it during a recent board meeting: "We're not asking for extras—we're asking for the basics our children need to learn."

TLDR

Despite a massive $114 million deficit, SFUSD is cutting costs without letting go of classroom teachers — but counselors, paraeducators, programs, and support staff all face tough realities in the year ahead.

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