New $1.3B SFUSD budget cuts 205 office jobs, but keeps all teachers employed

SFUSD has released a balanced $1.3 billion budget that preserves classroom teaching jobs, while executing some of the deepest cuts in district history to prevent a state takeover of the district’s finances.

The Facts

Superintendent Maria Su’s proposed budget for the 2025–26 school year slashes $114 million in spending — one of the largest single-year reductions ever for SFUSD. No teachers were laid off, though 345 teachers did opt for early retirement. The bulk of the reductions were in the back office, dropping the administrative budget from 25% of spending to just 16%. This means that 84% of SFUSD spending is now spent directly on schools, a big shift from last year's 75%.

The budget will be presented to the Board of Education this week and must be finalized and sent to the state by July 1.

The Context

After years of mismanagement and technical failures (including a payroll fiasco costing $10 million to fix), the district received a negative certification last summer, triggering state oversight through December 2025. If SFUSD fails to meet its fiscal benchmarks, the California Department of Education could take control of the district’s finances. This would be something that has never happened in San Francisco history.

In contrast to former superintendent Matt Wayne’s plan to close 13 schools, Superintendent Su has so far been able to avoid closing and consolidating schools, however these changes may still be necessary next year. The district plans to hire nearly 240 new teachers, in large part to replace the overall loss of more than 400 positions, including retirees and voluntary departures. Su signaled that another round of reductions is coming in 2026, more than the previously predicted $13 million.

The GrowSF take

San Francisco’s children deserve stable, well-run schools. We’re relieved to see Superintendent Su stabilize SFUSD without gutting classrooms — and we hope this budget marks the start of a new era of accountability and student-first priorities.