San Francisco Teachers Strike Leaves Trail of Fiscal Confusion

Union and district trade claims about $1.4B budget, with arguments based on complicated calculations and misinformation.

Published on Feb. 10, 2026

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The San Francisco teachers strike has left a trail of fiscal confusion as the union and district negotiate the terms of the labor contract. They have traded claims about the district's $1.4 billion budget, with arguments based on complicated calculations, misinformation, and confusing explanations about the district's finances and what it can afford to pay teachers.

Why it matters

Understanding the district's budget and finances is crucial to resolving the teachers strike, as both sides make competing claims about how much money is available for teacher pay and benefits. The complicated nature of school district budgets, with funding from various sources and rules on how money can be spent, has led to a lack of clarity and transparency around the district's financial situation.

The details

The district's total budget is about $1.4 billion for its 48,000 students, but a lot of that is already spent on mandatory items like pensions, special education services, and base salaries and health benefits. For years, the district has been spending more than it receives in annual revenue, using one-time money to pay for ongoing expenses, leading to a structural deficit. The district recently had to make $114 million in cuts and a state adviser was appointed to help avoid fiscal insolvency. There is also about $400 million in leftover funds at the end of each year, but most of that is reserved for specific purposes and can't be used freely for teacher raises or other costs.

  • The district's budget is an ongoing issue that has been a point of contention during the current teachers strike.
  • The district recently had to make $114 million in cuts and a state adviser was appointed in the past year to help avoid fiscal insolvency.

The players

San Francisco Unified School District

The public school district serving the city of San Francisco, with a total budget of about $1.4 billion for its 48,000 students.

San Francisco teachers union

The labor union representing the nearly 6,000 teachers, counselors, social workers, nurses, paraeducators, and other staff in the San Francisco school district.

Maria Su

The superintendent of the San Francisco Unified School District.

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What they’re saying

“We must be prepared to respond to a range of scenarios including earthquakes, federal budget decisions or any number of unexpected events that would require the district to cover payroll and other needs for a period of time.”

— Maria Su, Superintendent, San Francisco Unified School District (San Francisco Chronicle)

What’s next

The district and union are continuing to negotiate the terms of the teachers' labor contract, with the district's budget and finances being a key point of contention. The judge overseeing the case will decide on Tuesday whether to allow the district to move forward with its proposed $117 million rainy day fund.

The takeaway

The complicated nature of school district budgets, with funding from various sources and rules on how money can be spent, has led to a lack of clarity and transparency around the San Francisco district's financial situation. This has fueled competing claims from the district and union about how much money is available for teacher pay and benefits, making it difficult to resolve the ongoing teachers strike.