What is going on at SFUSD?

By Patrick Wolff

There has been a lot of dramatic news about San Francisco’s public schools (SFUSD) over the last two weeks. Let’s break down what happened:

• September 17: A salacious news article described SFUSD in complete dysfunction.
• September 20: Former school board president Lainie Motamedi blasted Superintendent Matt Wayne and called for his ouster.
• September 22: The school board held an “emergency meeting” to evaluate Wayne’s performance and decide whether to retain him. Wayne was not terminated.
• September 22: That afternoon, in conjunction with a joint announcement by Superintendent Wayne and Board of Education President Matt Alexander regarding how to “get SFUSD back on track,” Mayor Breed announced the creation of a School Stabilization Team to “help the School Board and District leadership navigate the coming months.”

There is a lot here to process. This Q&A explainer gives you the context to understand what is happening at SFUSD and what it means for deciding how to vote this November.

Remind me who runs SFUSD?

Voters elect the seven members of the Board of Education, each of whom serve a four-year term. (There are no term limits.) Terms are staggered: four are up for election this year, and the other three in two years. The main job of the Board of Education is to hire and oversee the Superintendent, who runs the school system. Think of SFUSD as being like a company or a nonprofit: the Superintendent is the CEO, and the Board of Education is the board.

Matt Wayne is the Superintendent. He was hired in spring of 2022 by the Board of Education, shortly after the successful recall of three school board members, to replace Vince Matthews, who was retiring. Wayne officially became Superintendent on July 1, 2022.

When did the fiscal crisis facing SFUSD start?

To quote Hemingway: gradually, and then suddenly. SFUSD has been fiscally mismanaged for decades, but always got enough money to paper over its problems. The pandemic put downward pressure on enrollment and upward pressure on costs during a period when the Board of Education was particularly irresponsible.

Three years ago, on September 15, 2021, the California Department of Education (CDE) issued a letter indicating a “qualified” approval of SFUSD’s interim budget. In plain language, the CDE was saying SFUSD might run out of money within the next two years. If that were to happen, the state would take control of SFUSD away from the Board of Education. This “qualified” status started a process of providing extra consulting by the state to SFUSD to help them address their budget problems.

Why was SFUSD in danger of running out of money? Do we not fund SFUSD enough?

SFUSD is one of the best funded school districts in California, thanks to generous local support by San Francisco taxpayers of over $100 million per year. The fiscal crisis is not because SFUSD does not have enough money; it’s because SFUSD spends too much money.

Has the fiscal crisis gotten better under Wayne?

No, it has gotten worse. At first, budget pressures eased thanks to one-time federal and state funding. But that funding rolled off, and spending has not been cut fast enough. In May, 2024, the CDE issued another letter to SFUSD, which downgraded SFUSD’s status from “qualified” to “negative.” In plain language, the CDE was saying that SFUSD would definitely run out of money within the next year unless drastic corrective action was taken. This “negative” status started a process where the state-appointed fiscal advisors who had previously been assigned to SFUSD were given the power to directly cancel any spending they deem necessary.

If SFUSD is unable to get out of this “negative” status, the next step would be a state takeover.

Yikes! What has to happen to prevent a state takeover in the short run?

Two things. First, SFUSD has to faithfully implement the 2024-2025 budget. (SFUSD’s budget year runs from July 1 - June 30.) This budget got $100 million in savings (out of about $1.2 billion in total spending), and it was blessed by the fiscal advisors assigned to SFUSD.

Second, SFUSD has to develop a 2025-2026 budget that saves another $100 million that the fiscal advisors believe is credible - and then it needs to implement that budget faithfully.

Implementing the 2024-2025 budget will already be pretty painful, but by using some budget tricks SFUSD was able to soften the blow. The 2025-2026 budget will be brutal, and current estimates are that SFUSD will need to lay off some 500 people to make the numbers work.

Are school closures part of SFUSD’s plan to save money?

Yes and no. Let’s unpack this. It’s important to understand the rationale behind potential school closures, which is part of a larger process SFUSD calls its Resource Alignment Initiative.

First of all, why does SFUSD want to close and consolidate schools? It’s because SFUSD has by far the most small, under-enrolled schools compared to all other California public school systems, and this leads to severe inefficiencies in its cost structure and delivery of education.

(Don’t confuse small schools with small classes. Small class sizes can be an effective strategy in certain cases when used intentionally. That is not the same thing as having small schools. There is plenty of evidence that schools that are too small lack sufficient scale.)

SFUSD’s resources are already spread too thin for its schools. And remember, SFUSD is being forced to cut spending even further, which will require substantial reductions in staff. Once that staff is let go, SFUSD’s schools, which are already spread too thin, will be even more starved for resources. This is why SFUSD needs to align its resources – or in plain language, consolidate some schools.

Okay, so just to recap: SFUSD needs to implement its current year (2024-2025) budget, and it needs to put together and pass its next year (2025-2026) budget, in order to avoid state takeover, right?

Yes. What the state is looking for is a credible path out of deficit spending, so that SFUSD is on a sustainable spending path.

Does SFUSD need to close schools to avoid state takeover?

No. Whether or not the state takes over SFUSD is entirely and only about fiscal solvency.

The Resource Alignment initiative (which includes school closures/consolidations) is about using resources more efficiently and effectively. Closing and consolidating schools, if done well, would use resources better and improve student outcomes. But it would probably not do much to reduce the actual level of spending, which is what the state is focused on.

How is the budget process going?

Pretty rough. The Board of Education formed an Ad Hoc Committee on Fiscal and Operational Health to oversee/micromanage Superintendent Wayne and his staff on the budget. They only managed to pass a 2024-2025 budget that the CDE accepted by having the state-appointed fiscal advisors directly intervene to cut additional spending. And there have been significant issues faithfully implementing this year’s budget.

As painful as this year’s budget is, next year’s budget will require even deeper cuts. And SFUSD only has ninety days before the deadline to submit its first draft of next year’s budget.

And how is the school closure process going?

Also pretty rough! Parents are scared and angry. The teacher’s union is taking the position that school closures harm students. School closures are always painful, and given all the turmoil SFUSD is going through, it has been very hard to convince people that closing schools is ultimately in the best interests of students and families.

Why did the Board of Education call its emergency meeting on Sunday?

As noted at the top, the immediate impetus were some news stories, and especially having former Board of Education president Lainie Motamedi publicly say that Wayne should be fired.

The key catalyst for these news stories was Wayne’s announcement on September 15 that the publication of the list of schools to be closed would be delayed by a month. Given all the anticipation around the originally announced publication date of September 18, delaying it by one more month was a huge psychological blow for the entire SFUSD community.

What is the gist of Mayor Breed’s “SFUSD rescue team” announcement?

The team consists of five people, who between them have expertise in finance, payroll, staffing, communications, and human services. It is unclear whether they will be dedicated full time.

The team will be led by Maria Su (Director of the Department of Children, Youth and their Families) and Phil Ginsburg (General Manager of Parks and Rec). Mari and Phil are well respected, and have previous experience with SFUSD.

There will be a special advisor to this team: Dr. Carl Cohn. Dr. Cohn is a former Superintendent of both Long Beach and San Diego school districts, and he is widely considered one of the best California superintendents of the last several decades.

Mayor Breed is also releasing $8.4 million of unallocated Student Success Fund money to SFUSD. Since Student Success Fund money is supposed to be dedicated to SFUSD anyway, it is unclear why this money had not previously been allocated.

What will this “rescue team” do?

That remains to be seen. What seems clear is that SFUSD can use all the help it can get. A big question will be whether this team can add value without getting in the way.

Will Matt Wayne remain Superintendent?

For now, yes. Right now the plan is for Wayne to focus on four priorities:

• Balance its budget and eliminate the structural deficit
• Rehabilitate its fiscal and operation systems
• Extend the longevity of the school bond program
• Rightsize SFUSD’s school portfolio with fewer but better schools

They will revisit Wayne’s performance in December.

What does this mean for my vote for the Board of Education?

The next Board of Education will need to decide whether Matt Wayne should remain Superintendent, and they may very possibly be choosing his replacement.

GrowSF believes it is more important than ever to choose Parag Gupta, Supryia Ray, John Jersin and Jaime Huling. The single most important job of the Board of Education is to recruit, hire and oversee the Superintendent. Each of them has the experience, temperament and judgment to do this job successfully.

The Board of Education needs an upgrade. Vote for the GrowSF endorsed candidates.

What does this mean for my vote for Mayor?

Typically, San Francisco voters don’t think much about the public schools when they vote for Mayor. We are all learning that this was probably a mistake. SFUSD needs reform, and it needs the partnership and leadership of a mayor who is willing and able to commit real political capital.

GrowSF is urging that you vote for all three of the following mayoral candidates in whatever order you choose:

• Daniel Lurie
• Mark Farrell
• London Breed

We think each of these candidates brings different strengths to the public schools, and each of them is head and shoulders above the alternatives. Daniel Lurie has nonprofit experience that intersects with SFUSD, although his website lacks a public school policy. Mark Farrell has financial expertise that SFUSD needs, and his website has a detailed public school policy. London Breed is the only candidate who is a product of SFUSD, and she has the experience of having been mayor and dealing extensively with SFUSD (even though her website lacks a public school policy).

Why doesn’t San Francisco have a better public school system?

San Francisco’s politics have been dysfunctional for way too long, and our public schools have suffered because of it. We can do better. If you have read this far, then you are part of the solution. Be informed, get involved, and tell others to do the same. Let’s grow SF and make it better.

Addendum (added October 19)

The crisis has culminated (for now) in the abrupt resignation/firing of Superintendent Wayne. Below is an additional Q&A explainer to break down what has happened and what it means.

What happened to Superintendent Wayne?

Wayne appears to have been pushed out by the Board of Education. Instead of firing him, the Board negotiated the terms of his resignation. 

Who is now running SFUSD?

Maria Su will serve as interim Superintendent until June 30, 2026. Su is the executive director of the Department of Children, Youth and their Families (DCYF), and she has been the co-lead of the Stabilization Team from the mayor’s office. She will remain an employee of the City of San Francisco (not SFUSD), and will serve as interim Superintendent under a Memorandum of Understanding. 

Why was Maria Su chosen as interim superintendent? 

Su is highly regarded as a leader, and her experience at DCYF gives her some familiarity with SFUSD. The Board of Education appears to have asked several senior SFUSD executives to serve as interim superintendent, but all of them declined. 

What will Interim Superintendent Su focus on?

SFUSD’s official statement lists three priorities:

1. Maintain local control by implementing a budget stabilization plan, which includes a plan to staff schools and deliver educational services and programs critical to student success
2. Restore trust and public confidence in SF public schools through accurate, timely, and accessible communications, robust community and school outreach, and cultivating strategic partnerships

Restore, remediate, and develop healthy operations systems with improved oversight and accountability

Basically, she will focus on implementing the current (fiscal year 24-25) budget, passing a fiscal year 25-26 budget, and getting basic operations and communications in shape.

What about school closures?

For now, school closures are being shelved. However, the SFUSD statement explicitly says, “Moving forward, SFUSD must consider school mergers or closures as a potential strategy to mitigate the effect of declining enrollment.” Sooner or later, SFUSD will need to tackle this issue.

How does the California Department of Education feel about this?

Based on public statements, this appears to have been done with the blessing of the state appointed fiscal advisors, and ultimately the state superintendent of education Tony Thurmond. 

Who is to blame for this mess?

The Board of Education. 

The single most important responsibility of the Board of Education is to recruit, hire and oversee the Superintendent. If the Superintendent flames out in less than two and a half years, it reflects a failure of the Board of Education.

What does this mean for my vote for the Board of Education?

The next Board of Education will need to recruit, hire and oversee the next Superintendent. 

GrowSF believes it is more important than ever to choose Parag Gupta, Supryia Ray, John Jersin and Jaime Huling. Each of them has the experience, temperament and judgment to do this job successfully. 

The only incumbent running for Board of Education is Matt Alexander. He should be fired along with outgoing Superintendent Matt Wayne. Both have failed in their roles. 

The Board of Education needs an upgrade. Vote for the GrowSF endorsed candidates.

Patrick Wolff is a parent of two former SFUSD students and has been active in SFUSD advocacy since the pandemic. He is on the board of the Westside Family Democratic Club, a cofounder of Families for San Francisco, and he currently serves as vice-chair of the Citizens Bond Oversight Committee.