Parents for Public Schools of San Francisco

F2. 263-10Sp2 - Tentative Agreement Between San Francisco Unified School District and Common Crafts, IBEW Local 6

Board approved both 263-10Sp1 - Tentative Agreements Between San Francisco Unified School District and United Educators of San Francisco.

Weissman-Ward: I would then move to amend the companion resolution to AB12 certification to strike out the second to strike out the word negative in the second where as clause and replace it with qualified.

The presenter clarified that declining enrollment has been ongoing for some time, and this factor needs to be considered separately when discussing budget certification.

They asked about the SFUSD budget, noting that the companion resolution mentioned a “negative certification,” but from a recent Youth Commission presentation, they understood the district was in “qualified certification.”

The student delegate thanked Superintendent Su, UESF, and everyone involved for collaborating to get students back into classrooms, acknowledging that the process has been unexpected.

Commissioner Alexander clarified that public statements framing the 17% as a recommended minimum were inaccurate; it is intended as a maximum.

However, districts can still set aside funds for liabilities; optional costs may be deferred to comply with caps. SFUSD, like other districts, often defers certain costs but maintains reserves for fiscal stability.

Elementary school districts: 16–18%
Union high school districts: 28–30% (typically wealthier districts)
State caps: In certain years, reserves are capped at 10% during fiscal “test one” periods.

District Reserves
State guidance: California Department of Education (CDE) recommends that local school districts not exceed 17–17.5% of reserves. This is a maximum, not a minimum.
Reserve recommendations vary by district type:

Some UE members are funded outside the general fund (e.g., child development or county programs), and those costs are not included in the agreement.

Special Education NPA contract work also contributes to differences in total costs.

1. Cost of the Agreement

The agreement covers three years at a total of $156 million, with the final year costing about $76 million.
Variances from prior estimates arise because:

Currently, SFUSD uses a pay-as-you-go approach, paying the bill monthly for retirees, totaling $35–$40 million per year. About 6% of this contract’s cost is currently not funded, highlighting ongoing financial obligations.

3. Unfunded Liability / Other Post-Employment Benefits (OPEB)
SFUSD has $654 million in underfunded OPEB liability.
Contributes approximately $38 million per year to district costs. OPEB represents lifetime retiree health benefits; districts can choose to pre-fund CalPERS up to maximum liability.

Strategy: Increase initial parcel tax per parcel beyond CPI to keep pace with rising health care expenses.

so initial renewal amount may need to exceed CPI to fully cover projected costs.

Modeling: Fiscal staff models over 20 years using 5–7 year averages to ensure the parcel tax covers the projected costs.

2. Parcel Tax (QTEA) Considerations
Current parcel tax expires in 2028; renewal would aim to cover future health care costs. Standard CPI increase for parcel taxes: 2.4–2.7% per year. Actual health care costs may rise faster (~10% per year),

Second year: $43.3 million (increase due to phased coverage, 10% health care cost increase, and 10% migration).
Health care costs fluctuate year to year; typically rise 6–7%, but projected at 10% to account for escalation.

1. Annual Health Benefits Cost
2026–27 school year (first year of new agreement): $20.7 million (coverage phased in starting January 1; partial payments begin July 1).

Deputy Supt: Yes it's a conditional clause if that funding source seizes we have to go back to table and subject to bargaining.

COMMISSIONER RAY:  Could you be more specific or clarify.  Is the district actually committed to paying for the health care costs if the parcel tax -- voters do not pass the parcel tax?  Entirely up to the negotiation up to that point?

There is trigger language that if it is not passed it will be subject to bargaining.  There's trigger language that we need to go back to the table in the event that occur.  What the result of that bargaining is determined at the table.

Deputy Supt:  So the specific parcel is QTEA for certified and other educators specifically members of the UENUA.  There's a source called for the funding you are describing.

If that parcel tax is not reuped, what will the impact be on our school district and will school district be bound to coffer the ongoing cost of health care even if the parcel tax is not reuped?

COMMISSIONER RAY:  I want to like one question to start.  I may have more later on.  It relates to how if the par sal tax -- parcel tax that is currently plan to be used to fund the health care for teachers?

G1. 263-10Sp1 - Tentative Agreements Between San Francisco Unified School District and United Educators of San Francisco. Kim Motioned. Fisher Seconded. Read into the record.

She also shared a memorandum honoring the passing of esteemed educator Ms. Taylor, acknowledging her contributions as previously mentioned by Ms. Marshall.

Dr. Sue announced that all SFUSD schools serving TK–12 will be closed during Spring Break, though early education and year-round TK programs will remain open, except on March 31.

Dr. Su: SFUSD had the wonderful opportunity to host CABE the California association for bilingual education this past week had several thousand educators and administrators and advocates and leaders here in San Francisco.

She noted that engaging with students, educators, and site leaders helps contextualize the work of the Board and staff, providing a firsthand view of how the district’s efforts are impacting young people.