SFUSD Fact-Finding Report — Explained

The plain language explanation of the SFUSD fact-finding report for parents.

Last updated: Feb 4, 2026Read the full source document here.

Part 1

Factfinding panel (who wrote this)

This report is written by a three-person panel: a neutral chair plus one representative selected by each side.

Source text

CHERYL A. STEVENS, IMPARTIAL CHAIRPERSON

ELIZABETH MORI

ANGELA SU

GrowSF explainer

Plain English: One person is neutral (the chair). Each side also has a panel member (SFUSD and UESF).

When you read the recommendation, keep in mind: the chair’s view tends to be the “middle” that’s meant to be defensible to the State and to the public. The union member’s dissent at the end explains where UESF thinks the chair was too conservative.

Part 2

Procedural background (how we got here)

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The parties began negotiating their successor agreement in March 2025 and bargained until impasse after ten bargaining sessions.

The classified and certificated unit members have been working without a contract since July 1, 2025.

The Factfinding hearing was held on January 23, 2026.

GrowSF explainer

Plain English: This isn’t a new disagreement — bargaining ran for months, then formally hit “impasse,” then mediation failed, and only then did it go to factfinding.

Working without a contract means pay/benefits generally stay at the prior agreement’s terms while bargaining continues — which is part of why both sides feel urgency.

Part 3

Statement of issues (what’s in dispute)

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The parties presented the following issues to the Factfinding Panel:

GrowSF explainer

Plain English: The report is structured around a list of disputed contract topics (“issues”).

You can think of each issue as a separate decision: wages, dependent healthcare, special education working conditions, sanctuary policies, contracting out, AI, health & safety processes, class size, and staffing levels.

Within: Statement of issues (what’s in dispute)

Issue 1 — Compensation (wages)

The core question: how large a wage increase SFUSD can afford in a contract that has to survive State scrutiny.

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The District proposes that all salary schedules be increased by 2% effective July 1, 2025, and another 2% increase on July 1, 2026, and another 2% increase in 2027

based upon savings accomplished by eliminating AP Prep (Article 7), Paid Sabbatical Leaves (Article 10), Department Head Preps and Stipends (Article 32), and Class Size Limits (Article 9).

GrowSF explainer

Plain English: SFUSD’s plan is “2% per year” and it says it needs to pay for that by cutting other contract provisions (like preps/sabbaticals) and avoiding new costs (like class-size caps).

This matters because it shows the District isn’t treating raises as “free” — it’s tying raises to offsets elsewhere.

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a 3% increase effective July1, 2025 and a 3% increase for July 1, 2026 seems more likely to pass State scrutiny

A 3% increase would keep the District on par with expected COLA and CPI changes over the next two years.

GrowSF explainer

Plain English: The neutral chair lands on a compromise: bigger than SFUSD’s 2% ask, but smaller than UESF’s 9% ask.

The key rationale isn’t “what’s fair” in the abstract — it’s “what will the State approve,” given SFUSD’s oversight status.

Source text

While there is certainly merit to each side’s claims, the proposed ongoing 9% increase exceeds the COLA and CPI and places UESF members well above the average.

GrowSF explainer

Plain English: The chair is saying the union’s wage demand is not just expensive — it’s also above what the chair sees as “typical” when compared to inflation metrics and other districts.

This doesn’t mean educators aren’t under pressure from Bay Area costs — it means the chair thinks this particular number is too far above the inflation benchmarks to justify under State oversight.

Within: Statement of issues (what’s in dispute)

Issue 2 — Dependent health insurance

Should SFUSD provide fully-paid dependent health coverage (Kaiser family plan), and if so, how can it be funded under oversight?

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Whether Certificated Article 12 and Classified Article 13 remain status quo as proposed by the District OR whether the District implement UESF’s $14 million dollar per year proposal

to offer fully paid health coverage at the Kaiser family plan?

GrowSF explainer

Plain English: This is about dependent coverage (spouses/kids), not just the employee’s own plan.

The headline is cost: the report frames the union proposal as roughly $14M/year.

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the District identified a solution that would provide the coverage requested and act as an incentive to make this benefit a permanent component of a future CBA

if the parties are able to agree on a MOU that secures the funds from the existing parcel tax

drawing on the funds on balance in the parcel tax is not only an appropriate temporary solution but provides the framework for an ongoing ask of the community.

GrowSF explainer

Plain English: The chair’s “path” for dependent healthcare is: use a parcel tax funding mechanism now, via a separate agreement (MOU), to get to 100% coverage without baking a new permanent expense into the core contract under oversight.

Whether you like this depends on your view of risk: the chair is optimizing for “State-approvable” in the short term; the union prefers locking the benefit into the CBA as ongoing.

Within: Statement of issues (what’s in dispute)

Issue 3 — Special education (caseload vs workload)

Should SFUSD keep a caseload model, or move to a workload model (which typically implies more staffing and cost)?

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Whether to maintain the current special education caseload model in Article 29 as status quo

OR to implement UESF's special education workload model requiring additional hiring of teachers and an additional cost of $22 million dollars per year?

GrowSF explainer

Plain English: Caseload counts students; workload tries to capture the real time demands (meetings, documentation, intensity of services).

The report frames the workload model as significantly more expensive (it cites $22M/year).

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the Panel believed that creating a pilot program at this time that included a few elementary schools, a middle school and a a high school

to develop an approach to address the demands and constraints Special Education teachers face.

GrowSF explainer

Plain English: The chair doesn’t recommend immediately switching the whole district to a workload model, but does recommend a pilot to pressure-test solutions.

This is a common “bridge” recommendation: acknowledge a real problem, but avoid a districtwide cost increase during oversight.

Within: Statement of issues (what’s in dispute)

Issue 4 — Community schools / sanctuary language

Can (and should) sanctuary and family-support commitments be written into the labor contract?

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Whether to allow the District to reject

“immigrant and refugee students and families,” “designation of the district as a sanctuary employer,”

as non-mandatory subjects of bargaining OR to implement UESF's proposal

GrowSF explainer

Plain English: This isn’t about whether SFUSD should support immigrant families — it’s about whether this belongs inside a labor contract as a mandatory bargaining topic.

The chair’s framing suggests the legal question (“mandatory subject”) is a gating factor.

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UESF’s proposal is not a mandatory subject of bargaining and therefore it is not appropriate to include in the CBA.

GrowSF explainer

Plain English: The chair is saying: even if the goal is admirable, the specific proposal doesn’t fit the legal category required to put it into a binding labor contract.

The chair recommends a joint resolution instead (a political/values statement), rather than enforceable contract language.

Within: Statement of issues (what’s in dispute)

Issue 5 — Contracting out

How much flexibility SFUSD should retain to hire contractors to deliver services when it can’t fill vacancies.

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Whether to keep said articles at status quo as proposed by the District so that it can continue to provide mandated services to students

OR whether to adopt UESF language regarding subcontracting that would make the ability to hire contractors if vacancies remain unfilled almost nonexistent.

GrowSF explainer

Plain English: This is a tension between continuity of services (district flexibility) and limiting privatization (union concern).

The chair later pushes SFUSD to reduce reliance on consultants, but doesn’t fully embrace all union restrictions in the core contract.

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the District must continue to reduce its reliance on outside consultants and thus reallocate the contracting out funds to programs that directly benefit their employees

GrowSF explainer

Plain English: Even if SFUSD keeps some ability to contract out, the chair is explicitly calling out consultant/contract spend as a place to find savings.

This becomes the chair’s “pay-for” to improve wages/conditions later, especially once oversight eases.

Within: Statement of issues (what’s in dispute)

Issue 6 — Artificial intelligence

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Whether to adopt the District's counter proposal to have a working group to collectively determine, study, and then bargain the scope and use of Artificial Intelligence in the District

OR to adopt UESF's proposed language?

GrowSF explainer

Plain English: SFUSD is proposing a “study/working group first, bargain later” approach. UESF is proposing immediate contract language.

In the chair’s conclusion, most of these non-wage issues end up as “status quo for now,” largely because the report says there wasn’t enough bargaining/evidence on them once dependent benefits became the sticking point.

Within: Statement of issues (what’s in dispute)

Issue 7 — Health and safety (incident reporting)

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Whether to maintain the District's current incident reporting system under Article 14 as status quo

OR to implement UESF's proposed new system and process that requires additional personnel and training issues, along with FERPA compliance concerns?

GrowSF explainer

Plain English: This dispute mixes operational burden (staffing/training) with legal compliance (student privacy under FERPA).

A typical “compromise space” here is process improvements without creating a large new administrative system — but the chair ultimately recommends maintaining status quo on this issue in the conclusion.

Within: Statement of issues (what’s in dispute)

Issue 8 — Class size (goals vs limits)

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Whether class size should be a goal or a limit.?

GrowSF explainer

Plain English: A “goal” is aspirational; a “limit” is enforceable and usually triggers costs (hiring more teachers or paying overage penalties).

The chair’s conclusion is status quo on this item, citing cost and lack of sufficient evidence in the record to justify the shift right now.

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There simply was not enough evidence presented at the Factfinding to justify a shift from class size goals to limits.

GrowSF explainer

Plain English: The chair isn’t saying class size doesn’t matter — the chair is saying the record presented didn’t justify changing the contract language given the budget/oversight constraints.

This is also a signal to UESF: if they want enforceable caps later, they’ll need stronger, specific evidence on impacts and costs.

Within: Statement of issues (what’s in dispute)

Issue 9 — Equitable staffing model

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Whether to maintain status quo in Article 15 as proposed by the District OR whether to implement UESF's $82.1 million dollars per year additional expense proposal

to having “fully staffed schools”

GrowSF explainer

Plain English: This is the biggest single-dollar non-wage proposal in the list: adding nurses, social workers, counselors/deans, and ratios.

Even people who like the idea have to grapple with the scale: $82.1M/year is a large recurring commitment during a period when the report repeatedly emphasizes oversight constraints.

Source text

The Panel agrees to maintain the status quo on issues 6, 7, 8, and 9

GrowSF explainer

Plain English: The chair recommends not changing AI, health/safety, class size, or equitable staffing language in this contract cycle.

The report links that outcome to limited negotiation/evidence once talks became dominated by dependent benefits and wages.

Part 4

Statutory criteria (what the panel must consider)

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California Government Code Section 3548.2 sets forth the criteria that factfinders must consider

The interests and welfare of the public and the financial ability of the public schools.

The Consumer Price Index for good and services, commonly known as the cost of living.

GrowSF explainer

Plain English: The chair isn’t free to pick any outcome. The law tells the panel what to weigh: ability to pay, comparables, CPI/COLA, and other relevant equities.

That’s why the recommendation repeatedly references inflation metrics and State oversight — they’re central to the legal framework, not side notes.

Part 5

Factual background (SFUSD + what’s unresolved)

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The San Francisco Unified School District (“SFUSD” or “District”) ... serves nearly 50,046 students and employs more than 8900 employees

Specifically, the parties were unable to reach agreement on compensation, health benefits for dependents, workload for Special Education specialists, ... class size, and equitable staffing.

GrowSF explainer

Plain English: The report situates this dispute in the scale of SFUSD: large workforce, many schools, and a broad list of unresolved contract topics.

It also flags the two “big rocks” that drive everything else: compensation and dependent benefits.

Within: Factual background (SFUSD + what’s unresolved)

Factual background A — Financial data (can SFUSD afford it?)

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The evidence presented by the parties is in dispute as to whether the District has the financial means to pay UESF’s proposed wage increase

Alternatively, the District explained that a 4.5% or even an 3% salary increase per year cannot be sustained

GrowSF explainer

Plain English: Both sides bring budget narratives. UESF argues SFUSD can redirect money (especially away from contracting out). SFUSD argues declining enrollment and oversight makes big new costs unsafe.

This section is important because later the chair’s recommendation turns on which side met the burden of showing where the money would come from.

Within: Factual background (SFUSD + what’s unresolved)

Factual background B — Comparables (who pays more?)

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UESF compared their wages with nineteen other unified school districts in the State.

The District’s wage and benefits comparison ... ranks SFUSD at or near the top of the list of twenty school districts.

GrowSF explainer

Plain English: Both sides use “comparables,” but they interpret the same landscape differently.

That’s why the chair later says the real task is reconciling differences in the data analysis, not debating whether educators deserve raises at all.

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by March 2026, the District’s status would be upgraded to “qualified certification” meaning the District “may or may not be able to meet its financial obligations for the current and next two school years.”

This shift in status is aspirational and will only occur when and if the State endorses the District’s self-certification.

GrowSF explainer

Plain English: Even if SFUSD expects to improve its certification, the report emphasizes it’s not guaranteed until the State signs off.

That uncertainty is a big part of why the chair recommends conservative commitments now.

Part 6

Discussion & recommendation (how the chair reasons)

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It is the role of the Panel to apply the relevant factors set forth in EERA, to the facts underlying the impasse presented, and render its best recommendation considering those factors.

GrowSF explainer

Plain English: The chair is explicitly grounding the recommendation in the legal framework (EERA criteria) and the record presented at the hearing.

So if the report says “not enough evidence,” it’s not just rhetoric — it’s the chair signaling the record didn’t support a change.

Within: Discussion & recommendation (how the chair reasons)

Discussion A — Public welfare + ability to pay (the main decision engine)

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even though the District expects to transition to a qualified financial certification by March 2026, the District will still be subject to limited State oversight.

Therefore, to ensure wage increases survive State scrutiny, a conservative approach would be in the best interest of the community at this time.

GrowSF explainer

Plain English: This is the chair’s central constraint. The recommendation is designed to be “approvable” under oversight, not just desirable for either party.

That’s why the chair repeatedly emphasizes conservative commitments until SFUSD is outside State scrutiny.

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the Union has not met its burden of proof that the District has more non-restricted resources at its disposal to fund the requested increases.

GrowSF explainer

Plain English: The chair is saying UESF didn’t convincingly show where the extra ongoing money would come from (beyond general claims about consultants/reserves).

In a factfinding setting, that matters: if you want a larger recurring commitment, you need a clear, credible funding path.

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a 3% increase effective July1, 2025 and a 3% increase for July 1, 2026 seems more likely to pass State scrutiny and secure the District’s stabilization efforts by the time this contract expires in 2027.

This annual 3% increase should positively position the District as a competitive employer and help their employees keep up with the rising costs of living in the Bay Area.

GrowSF explainer

Plain English: This is the chair’s wage recommendation in full: 3% + 3% on a two-year deal. The chair thinks it’s both more defensible to the State and better for recruitment/retention than 2%.

Note the framing: it’s aligned to COLA/CPI (inflation benchmarks), not to the union’s comparables argument alone.

Source text

drawing on the funds on balance in the parcel tax is not only an appropriate temporary solution but provides the framework for an ongoing ask of the community.

GrowSF explainer

Plain English: The chair is effectively saying: if you want dependent benefits now, the least risky path is to attach it to a specific revenue source the public has already approved (parcel tax).

This shifts the question from “can SFUSD afford it in the General Fund?” to “can the community fund it explicitly?”

Within: Discussion & recommendation (how the chair reasons)

Discussion B — Comparables (why not 9% and why not 4%?)

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Although the District insists it cannot sustain more than a 4 % increase over the course of two years, the recommended additional 1% wage increase proposed for each year of a successor contract

is borrowed from that third year with the belief that more will be forthcoming from the State in the future

GrowSF explainer

Plain English: The chair is acknowledging SFUSD had floated 6% over three years; since UESF wants two years, the chair “pulls” 1% from that third year into each of the first two years.

This is a bet that State funding improves and oversight eases, so SFUSD can handle more later — but it’s also why the chair doesn’t recommend jumping all the way to 9%.

Source text

While the Association’s demand for a total of a 9% wage increase over the course of two years ... is not completely supported by the evidence

the burden rests with the Association to provide adequate challenges to the District’s financial analysis yet, UESF failed to adequately meet that challenge.

GrowSF explainer

Plain English: The chair is saying UESF’s evidence didn’t successfully rebut SFUSD’s financial risk argument (negative/qualified certification, revenue constraints).

So the chair picks a middle-ground number that still adds “some demand on the budget,” but avoids a State-rejected package.

Within: Discussion & recommendation (how the chair reasons)

Discussion C — CPI / cost of living (inflation benchmarks)

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The data submitted by the District shows a CPI for the State of 2.40% for 2020-21, 6.60% for 2021-2022, 5.69% for 2022-2023, 3.41% for 2023-2024 and 2.6% for 2024-2025.

GrowSF explainer

Plain English: CPI is the report’s main “inflation yardstick.” The chair uses it to evaluate whether proposed raises keep pay steady in real terms.

This matters because the chair is trying to justify a number that looks reasonable beyond just local politics.

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the proposed 2% increase is slightly lower than the COLA of 2.30% for 2025-2026 compared to UESF’s 4.5% annual wage increase demand.

Since the 2% increase does not cover the 2.30% COLA ... it appears as though a wage increase slightly higher than 2% would ensure UESF members are keeping up with the cost of living increases in the Bay Area.

GrowSF explainer

Plain English: The chair is basically saying 2% is likely too low relative to inflation (COLA/CPI).

That’s another reason the chair lands at 3%: it’s only slightly above those inflation benchmarks, but it’s enough to avoid falling behind.

Within: Discussion & recommendation (how the chair reasons)

Discussion D — Other factors (strike vote + “precarious” finances)

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UESF has already voted in favor of striking ... instead of working with the District on alternative approaches to securing the best possible contract within the limits of the District’s financial position.

GrowSF explainer

Plain English: The chair is calling out bargaining posture — suggesting UESF’s strike posture reduced the room for iterative problem-solving on non-wage issues.

Whether you agree or not, this helps explain why the chair emphasizes compromise solutions that can be “fulfilled financially.”

Source text

There is no dispute, the District is still in a precarious financial position

GrowSF explainer

Plain English: This sentence is the chair’s thesis statement: the recommendation is built around financial fragility and State oversight risk.

It’s also why the chair repeatedly prefers temporary/targeted solutions (like parcel tax funding for dependent benefits) over large new ongoing General Fund commitments.

Part 7

Conclusion (the chair’s bottom line)

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the Panel recommends a 3% wage increase for each year of a two-year contract effective July 1, 2025.

the Panel encourages the parties to tap into the resources available in the existing parcel tax to provide this benefit to its members for at least the next three years

The Panel is aware UESF has secured a strike vote ... but the Panel believes a compromise that can actually be fulfilled financially is in the best interest of the community

GrowSF explainer

Plain English: The chair recommends 3% + 3% wages, maintains status quo on most non-wage issues this cycle, and tries to route dependent benefits through parcel-tax funding rather than the main contract under oversight.

The chair is explicitly prioritizing a deal that (1) can be approved by the State, and (2) can actually be paid without forcing cuts that undermine schools.