SAN FRANCISCO UNIFIED SCHOOL DISTRICT

ZERO BASED BUDGETINGUpdate on Family & Community Engagement Efforts

Review of the District’s Budget HistoryPreview of the FY 2022-23 Budget Balancing Plan Template & Timeline

October 26, 2021

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The District team is partnering with Parents for Public Schools and the Parent Advisory Council (PAC) to engage a broad range of family and community participants.

Students & Families Site Leaders Labor All Parties

School Site Councils

PTA/ PTA “411”

SFUSD Parent Advisory Groups

Community Based Organizations (CBOs)

Professional Development Events

“Lunch & Learn”

LEAD Cohort meetings

Focus Group(s)

Budget Presentations

Bargaining

BBS Committee / Board of Education Meetings

LCAP Task Force

Other Partners & CBOs

Invest in an education model and services that are most critical to students and their families

Determine staffing and budget models that are manageable, transparent, and attuned to sites’ and students’ needs

Enter into fair and fiscally prudent labor agreements that allow the District to recruit and retain a high quality, valued workforce

Develop a balanced and sustainable FY 2022-23 budget that meets the needs of the SFUSD community

Zero Based BudgetingFamily & Community Engagement

● Site Leader Meetings○ 1 Assistant Superintendents & Instructional Chiefs ○ 2 “Lunch-and-Learn” sessions with Elementary &

Secondary school site principals○ 5+ Principal cohort meetings with 60+ site leaders○ 2+ Focus group meetings will be scheduled soon to

invite all principals to take deeper-dives into the budget and weigh in on core site budget needs

● Labor○ 1 Meeting scheduled for this week

Family and Community Engagement:

Site Leaders & Labor Partners

Various Dates, Sept - Nov

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● 40 + participants○ District advisory members○ Community partners/CBOs○ Parent/family advocacy groups○ Teachers and administrators

● Presentation on Budget ● Discussion and learnings:

○ What is the most important information to share○ Additional information about our community needs○ How to engage community in budget discussions

effectively and equitably○ Who else can help us think through the issues and

be part of the discussion.

● Next Steps: Continue to synthesize information and

develop/ implement actions

Family and Community Engagement:

Kickoff Meeting

October 13, 2021

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● 25+ Task Force participants● Mike Fine, CEO of FCMAT attended

○ Spoke to the need for connections between the current budget balancing process, LCAP development, and site planning process

○ Q&A about role of LCAP task force

● Shared feedback from October 13th community meeting

Family and Community Engagement:

LCAP Task Force

October 18, 2021Regular Meeting

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❖ Community partners shared that it would help to look back at the District’s budget history before we move forward with hard decisions.

❖ Looking back at prior budget presentations, it is clear that:

○ A budget shortfall was looming due to ongoing deficit spending

○ No formal action was taken to address the deficit outlook until midway through FY 2019-20, when reserves were depleted

○ Budget cuts to Central Services allowed for expansion in priority areas

Family & Community Input“Review our Budget History”

SAN FRANCISCO UNIFIED SCHOOL DISTRICT

Family & Community Input“Review our Budget History”

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FY 2018-19 Budget Message: “Ongoing cost

increases will outpace revenue growth”

● Limit Impact to Students and School Sites

● Board/Superintendent Priority Alignment:

○ African American students / PITCH

○ Improve systems & customer service

● LCAP Stakeholder Recommendations

● “Lights-on” / Compliance

● Alignment to available funding sources (i.e., restricted funding, grants, etc.)

FY 2018-19 Budget Prioritization:

Missing: Budget Stabilization

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Fiscal Year (FY) Presentations:

FY 2018-19 FY 2019-20 FY 2020-21 andAugust Revision

FY 2021-22

Site Funding Increased for salary and benefits growth

Increased for salary and benefits growth

Increased for salary and benefits growth

Increased for salary and benefits growth

Central Funding 5.25% cuts (~$10M), offset by $20M new priority programs

2.0% cuts (-$2.5M), offset by $2M new priorities

6.0% (-$16M) cuts, no offsets; shift of $3M onto PEEF-OGU

NA

Net Operating Surplus/ Deficit

-$10.3M -$30.3M $10.5M $20.6M

Available Fund Balance, +2 FYs

$26.6M-$5.4M / -$36.5M

$8.4M-$13.4M/ -$26.9M

$10.5M-$75.4M/ -$94.3M

$15.0M-$97.0M/ -$112.0M

Budget Rationale

- Protect school funding- LCAP Stakeholder input- Use fund balance to support priorities

- Centralized supports- LCAP Stakeholder input- Board resolutions

Initial belt-tightening paired with use of one-time stimulus funds

Use of one-time stimulus funds to stabilize students

Family & Community Input“Review our Budget History”

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❖ District expenditure growth will continue to outpace revenue growth, further deepening our deficit outlook

❖ Multi-year projections (MYPs) estimate deficits of at least $125M for FY 2022-23, after accounting for lost enrollment

❖ Per CDE, the Board of Education must adopt and submit a budget balancing plan by December 15, 2021

❖ Staff will roll out an initial balancing proposal on November 2nd to ensure adequate time for Board and community input

Budget BalancingLooking Ahead

Lens 2: Zero Based Budgeting

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Lens 1: Proximity to the Student

Budget BalancingLenses for Prioritizing Investments

Category CurrentBudget

% of Total FTE Notes

Site Based Budgets $404m 32% 3,431 WSF, Grants, & (some) MTSS

Central Budgets

Program: Direct Service

$384m 30% 2,579 Central allocations; (some) MTSS; SPED allocations; QTEA

Program: Indirect Service

$107m 8% 265 Supports for Direct Service programs, including TSAs

Operations$238m 19% 638 Transportation, Nutrition, Technology, and

Custodial services at sites

Administration$144m 11% 771 Clerks and managerial positions; Business

Services; HR; Legal

Central Total $872m 68% 4,254

Total Expenditures $1,277m 100% 7,685

Budget Shortfall -$125m -10% FTE

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62% Site Budgets & Direct Service

38% Indirect and Other Services

Budget BalancingBudget by Major Category

Category 2022-23Current

2022-23 Proposed

Proposed Measures

Explanation of Change, General Overview

Site Based Budgets $404m [$ TBD] [$ TBD]

Central Budgets

Direct Service $384m [$ TBD] [$ TBD]

Operations $238m [$ TBD] [$ TBD]

Indirect Service $107m [$ TBD] [$ TBD]

Administration $144m [$ TBD] [$ TBD]

Central Total $873m [$ TBD] [$ TBD]

Total Expenditures $1,277m [$ TBD] [$ TBD]

Budget Shortfall -$125m [$ TBD] [$ TBD]

12Budget Balancing (High Level)

Template: Major Categories + Lenses

❖ Lens 1: Proposed reductions will be rolled up into these major budget categories

❖ Lens 2: Details of reductions within the major categories will be further broken down to describe alignment with the ZBB Lens

❖ Details will be provided on a different table that describes the rationale for reductions

Detailed Items Current Proposed Change FTEs One-time/ Ongoing

Explanation of Change, Detailed alignment with ZBB Lens

MAJOR CATEGORY

[Proposed reduction description]

[$ TBD] [$ TBD] [$ TBD]

[Proposed reduction description]

[$ TBD] [$ TBD] [$ TBD]

Total Expenditures [$ TBD] [$ TBD] [$ TBD]

13Budget BalancingTemplate: Detailed Reduction Proposals

❖ The intent is to drill down to a deeper level to articulate impacts to students and provide the rationale for the change, e.g. efficiency measure, reduced enrollment, service enhancement

❖ Identifies changes to funding and staffing, as well as the ongoing vs. one-time nature of a reduction

❖ This information will roll up to the major categories in the overall Budget Balancing Plan

Today BOE Regular Meeting: Engagement update/ Budget balancing template & timeline

November 2 COW: Initial Budget Balancing Plan proposal/ Overview of Schools Site and Central Allocations proposal

November 3 BBS Committee, NA (focus on other business)

November 9 BOE Regular Meeting: Overview of Indirect Services, Operations, and Administration proposal

December 1 BBS Committee: Review Budget Balancing Plan/ Dive deeper in specific areas of December 7 interest, concern and consideration/ Evaluate alternatives and tradeoffs

December 14 BOE Regular Meeting: 1st Interim Report + Budget Balancing Decisions

14Budget BalancingInformation & Decisions Timeline

● Objectives of today’s presentation:○ Update on Family & Community Engagement efforts○ Respond to community request for an overview of the District’s budget history○ Preview of the FY 2022-23 Budget Balancing Plan template & timeline

● No Decisions are being made until December 14th

● Questions for Board and Public consideration:○ Do the Budget Balancing templates look helpful? ○ Are there any other details that you would like to see?

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Thank you & Request for Input

Thank you

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