It's facing a $421 million shortfall in the next few years and the superintendent is calling for cutting 927 jobs.
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The school superintendent says those positions are already vacant and cutting those positions will save $103 million annually.
Those vacant positions include teachers, custodians, central office staff and administrators.
San Francisco Unified School District is tackling a major budget deficit. At the same time, teachers are expected to get a big pay raise.
MORE: SFUSD looking at cost-cutting measures as enrollment continues to decline
SFUSD looking at cost-cutting measures as enrollment continues to decline
On Tuesday night, the Board of Education is expected to approve an interim budget to make it all work.
According to projections, the SFUSD budget deficit will be $421 million by 2025.
"That's just an illustration of what would happen if the board did not take action. In fact, by the board taking action, we will show we have a balance budget by the end of 2025-2026," said Superintendent Matt Wayne.
That action to be taken at Tuesday night's board meeting includes cutting already vacant positions.
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"One of the reasons we can eliminate vacant positions is because we have declining enrollment," said Wayne.
MORE: SF teachers, parents claim school district involved in years of 'financial mismanagement'
SF teachers, parents claim school district involved in years of 'financial mismanagement'
The superintendent will look at other areas to help balance the budget.
"We have a few other areas that we are looking at, like where we spend money on consultants, on the district office, how we are staffing our schools, we will be looking at that through our budget planning process," said Wayne.
ABC7 News asked the Superintendent if he planned to close schools or lay off staff. He said no.
He says at Tuesday's meeting, the first action is to approve the elimination of those vacant jobs.
Then, the school board can approve the salary increase.
In October, San Francisco Unified School District agreed to pay teachers and staff more.
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We asked the Superintendent about the distressed payroll system---if it will be scrapped or if a decision will be made. He said people are getting paid.
"We are in a much better place now than a year ago when I declared a payroll state of emergency. We are looking at moving forward, what is the system that will best meet our needs. We are not making any decisions right now," said Wayne. "There are still issues that we are reconciling but it has gone down 10-fold since a year ago."
MORE: SF school district starts new year with massive teacher shortage
SF school district starts new year with massive teacher shortage
"We will continue to advocate for the fully-staffed schools our students deserve and fight any cuts that attempt to balance budget deficits on the backs of our students and schools," said Cassondra Curiel, president of UESF, the teachers union.
Curiel said the school district has a history of financial mismanagement.
"By stopping unnecessary expenditures, increasing revenue of certain properties, the district could save millions by stopping certain borrowing practices, leasing unused properties and raising the market rent on entities like PGE," said Curiel.
The Superintendent says the Board of Education will vote to approve the pay increases for teachers and staff.
Then the budgeting process for the 2024 to 2025 school year starts in January and goes through June.
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