San Francisco Unified School District Avoids State Takeover with $113 Million in Budget Cuts

San Francisco is experiencing a series of significant governance achievements, including the reaffirmation of City College of San Francisco's (CCSF) accreditation, the San Francisco Unified School District (SFUSD) averting state control, and the city initiating substantial job reductions. These developments signal a shift towards fiscal stability and operational efficiency in the city.

City College of San Francisco's accreditation was recently reaffirmed by the Accrediting Commission for Community and Junior Colleges (ACCJC) as of June 27, 2025. This decision followed the college's successful efforts to address prior deficiencies related to financial decision-making and board governance, securing its ability to offer federal financial aid and transfer credits.

The San Francisco Unified School District has successfully navigated a severe financial crisis, avoiding a state takeover and charting a path to solvency. Superintendent Maria Su announced the district has balanced its 2025-26 budget, implementing $113 million in cuts, primarily through staffing reductions. The district aims for a revised fiscal rating by December 2025 to fully remove state oversight, following a period of strict state supervision that began in May 2024. Despite provisional layoff notices issued to staff, many were ultimately rescinded, and a Supplemental Early Retirement Plan was adopted to manage staff reductions.

Concurrently, San Francisco Mayor Daniel Lurie has initiated a plan to trim city expenditures, including the elimination of approximately 1,400 City Hall jobs, most of which are currently vacant. This move is part of a broader strategy to address a projected budget deficit. While the tweet attributed job cuts to "Mayor" without specifying, the current administration under Mayor Lurie is responsible for these fiscal measures. A recent deal with the Board of Supervisors prevented 56 filled positions from being laid off.

These collective outcomes are highlighted by Trevor Chandler, a member of the San Francisco Democratic County Central Committee, who stated in a tweet, "Competency is back in SF! Just this week: ✅ CCSF accreditation saved ✅ SFUSD avoids state control, starts financial recovery ✅ Mayor trims 1,300 City Hall jobs." He further emphasized, "Thanks to the new @SFDemocrats, common sense majorities are delivering results. This is what governing looks like!" Chandler is part of the "Democrats for Change" slate, a moderate faction within the local party advocating for pragmatic and competent governance to address the city's challenges.