A new report from the California Department of Education highlighted the financial strain, saying SFUSD may run out of cash by the next school year.
At the meeting, SFUSD superintendent Matt Wayne, introduced a presentation by state advisors on what steps they think the district needs to take.
"It exemplifies what you're saying is both the progress that we've made, but how far we need to go," Wayne said.
Last week, the state gave new powers to some of their representations that have been assigned to monitor SFUSD.
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Those representatives now able to overturn or stop financial decisions made by the superintendent or the school board.
"It's been developing over past superintendents, past school boards. It's now on us and there's no way out," said SFUSD alumnus John Trasvina.
In order to save money, some of the actions being considered include things like laying off staff and school closures.
Moves that concerned many parents present at Tuesday's meeting.
"This is not going to make more third graders and more eight graders able to pass a math test. This is going to make that worse," said Bridget Dyer.
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Dyer says she has two kids in the district - including a son with autism.
She tells us she worries her son's class size could increase as a result of some of the proposals - taking away much need attention from her son.
"He's brilliant. And I don't want him in a special day class when he can succeed," Dyer said.
With state pressure and financial realities kicking in though, the district says it will do everything it can to put the students first.
"I am grateful to the state's support and assistance as we work to do right by our kids, by our educators, and make sure our schools are functioning the way they should," said school board president, Lainie Motamedi.