The San Francisco Unified School District (SFUSD) is facing a significant financial challenge as declining enrollment and expiring funding sources lead to a projected budget shortfall. This comes at a time when the teachers union, the United Educators of San Francisco, is threatening a strike if their pay demands aren't met. The union, representing over 6,500 district employees, held a strike readiness meeting in May and has publicly stated its intention to strike in the fall if a satisfactory agreement isn't reached. The district's current offer of a 5% raise is deemed insufficient by the union, which argues that higher salaries are necessary to attract and retain educators in the expensive San Francisco housing market.
The projected budget deficit is particularly concerning given the district's recent approval of a $1.28 billion operating budget. While the district has relied on state surpluses and pandemic relief funds in recent years, these resources are no longer available. California is now facing its own $32 billion budget deficit, and COVID-19 relief funds have been exhausted. Compounding the financial strain, student enrollment has dropped by 5,000 over the past five years, attributed in part to the pandemic and a declining birth rate in the city.
District officials are exploring various options to address the budget shortfall, including potential staff layoffs, program cuts, and even school mergers as a last resort. SFUSD Superintendent Matt Wayne emphasized that any school mergers would involve extensive community engagement. School board President Kevine Boggess acknowledged the challenging road ahead but reassured the public that no immediate changes are expected for the next school year.
Adding to the district's difficulties, San Francisco's ongoing struggles with crime and homelessness pose further challenges in attracting students and teachers. The police department is currently understaffed by over 500 officers, further exacerbating the city's public safety concerns.

San Francisco Mayor London Breed speaks during a meeting.

San Francisco Unified School District board meeting.

Homeless tents in San Francisco's Tenderloin District.