Official Statement: Parents for Public Schools of San Francisco: On Budgets, Reserves, and Advocacy

We understand the San Francisco Unified School District can’t spend more than it has and is being closely watched by state fiscal advisors. On the other hand, we want our kids’ teachers to earn a living wage in San Francisco and have health insurance for their families. We hope teachers don’t have to go on strike to have their demands met. While a strike will be a hardship for many families, the district is responsible for instructional services from consistent and highly qualified educators. Our support of the people who work hard to take care of our kids every day is critical.  

Yesterday, February 2nd, an open letter was released identifying SFUSD and six other school districts, Open Letter from Superintendents — A Shared Call for Sustainable Funding for California's Public Schools. They argue that current cuts reflect a statewide funding problem, while encouraging educators and families to stand together and demand increased state support.

“The open position letter does not promise higher pay, restored staffing, or immediate relief. It does not propose concrete solutions districts will implement locally. It does not accept responsibility for fixing things at the district level. What’s missing is power. The letter has tone, unity, and concern—but not demands, deadlines, data, or pressure. It explains pain without converting it into advocacy and gaining policy force.” Dr. Vanessa D. Marrero, President

A lot of the discussion revolves around SFUSD’s budget which we have been following in our #boardwach program. Below are some budget-related issues we wanted to demystify.

The reserves are not a credit card, they are much more like a savings account.

What is the best way to think about SFUSD’s reserves?

In board meetings the Superintendent, staff and some Commissioners have compared the reserves to a credit card. In this scenario, a family is spending more than they earn so they put some expenses on a credit card. This is a bad move because the family will have to pay interest on those expenses to the credit card company. One big difference is clear: SFUSD does not pay interest on their reserves. The reserves are money in the bank that the district has built up and set aside over time, like a savings account.

How much does SFUSD have in reserves?

As of July 1st, 2025, the start of the 2025-26 Fiscal Year, SFUSD had a $429 million “starting balance”. This is the amount left over after last year’s expenses. According to the district’s First Interim Report, SFUSD is projected to end this Fiscal Year with a $326 million “ending balance” – without any budget cuts. These numbers combine SFUSD’s “unrestricted” and “restricted” budgets, just as SFUSD’s combined total revenue this year is $1.3 billion. With agreement from the Board, the District set aside $111 million of unrestricted “starting balance” dollars into a separate account (Fund 17). This account – plus $58 million additional dollars projected as “ending balance” are unrestricted – meaning they can be used for pretty much any kind of expense. The remaining $157 million of “ending balance” are restricted dollars for specific uses from a variety of programs. Some of these programs are long-term, like the Public Education Enrichment Fund (PEEF) which doesn’t expire until 2041.  

How much is SFUSD required to hold in reserves?

For a district its size SFUSD is legally required to hold only 2% of its $1.3 billion yearly budget in reserves which works out to about $28 million. The $111 million Fund 17 set aside is an additional 8% of the yearly budget. The total $326 Fiscal Year 2025-26 “ending balance” represents 26%. Reserves this size are for an apocalyptic scenario that doesn’t seem to be realistically in SFUSD’s future.

PPSSF budget analysis here

Underestimating SFUSD's Schools presentation here

Open Letter from Superintendents — A Shared Call for Sustainable Funding for California's Public Schools  here