SF’s school district says it finally figured out a budget to avoid bankruptcy

Because of staffing cuts and a wave of retirements, concerns have been raised about impacts on the quality of education. District officials said they will ensure that every school retains essential staff, including principals, teachers, and clerks.

Phil Kim, president of the school board, said the budget must reflect the district’s commitment to investing in education while addressing fiscal challenges, and he’s confident that it will have the state’s approval.

“Despite the difficult decisions we’ve had to make, we’re on a clear path toward positive fiscal certification,” Kim said.

However, the district needs to make more cuts, and school closures — a highly sensitive issue after the failed 2024 process — may still be on the table.

Su confirmed that SFUSD will need to make more cuts in 2026-27, citing lower-than-expected state funding and rising costs for special education.

Su said she plans to conduct a comprehensive review next year of underutilized classrooms and school buildings. Some may be repurposed for transitional kindergarten, which is a state-mandated program with rising demandsor for special education.

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