SFUSD reports $35 million unrestricted operating deficit in 2025-26 close

What happened

SFUSD’s 2025-26 year-end close showed a $35 million deficit in unrestricted operations, even though total fund balances remained positive. The district reported an ending fund balance of about $302 million, down from $429 million at the start of the year; the board approved the close packet unanimously.

Why it matters to families

The unrestricted shortfall and roughly $127 million decline in total fund balance underscore ongoing pressure on the district’s flexible resources, which support services across its schools.

The evidence

In the October 13, 2026 meeting transcript, the CFO said unrestricted operations had a $35 million deficit after transfers and other financing activities (02:15:09–02:15:24). Later, the board discussed beginning and ending fund balances of $429 million and $302 million, and unanimously approved the close report (02:40:05–02:42:56).

The source