Underfunding of Special Education by Feds & State Puts Strain on SD Unified Budget

Superintendent Fabi Bagula Releases Video Outlining Budget Challenges Ahead of Presentation Tuesday

Community Meeting December 17 at 5 p.m. to Learn About the 2025-26 First Interim Budget

SAN DIEGO (DECEMBER 4, 2025) - San Diego Unified School District Officials on Tuesday will present their 2025-26 First Interim Budget, which is expected to show a $47 million deficit between expenses and revenue for the following school year. The district's Chief Financial Officer will outline the causes for the deficit during the regularly scheduled meeting. Specific details for reducing the budget gap are expected in March 2026 when the Second Interim Budget is shared.

Today, the Superintendent released a video on San Diego Unified's YouTube pagefor employees, families and the broader San Diego community to learn more about the district's budget challenges and what's being done to address them.

In excerpts of the video, Superintendent Bagula says,

"Based on current projections, we are estimating a $47 million deficit between our expenses and expected revenue for the 2026-27 school year. There are several reasons for this…. [including] the chronic underfunding of Special Education."

"Supporting students with disabilities requires highly skilled educators, strong systems, rich data, and multiple layers of intervention and acceleration. These services cost us more than $400 million annually. Yet we receive only about $125 million from state, federal, and local sources. The remaining $275+ million must come from our general fund. This is not sustainable, and it is not fair to our children and families. This is why I have begun forming a coalition of community leaders committed to advocating for our fair share and addressing the systemic challenges facing special education."

"We have taken several important steps to begin addressing our ongoing budget gap…Temporary fixes, like one-time funds or retirement incentives, won't be enough this time…"

"...Our guiding principle is clear: students come first. We will continue to prioritize student wellbeing, math and literacy progress, and college- and career-readiness. Any proposal to reduce spending will be evaluated through that lens. In March, we will share these Budget Reduction Strategies in detail, along with a clear plan to ensure San Diego Unified remains strong-not just for today's students, but for future generations."

San Diego Unified on Wednesday, December 17, 2025 is hosting a meeting entitled Working Together: What Our Community Should Know About the 2025-26 First Interim Budget Report. It will be held at the Wilson Middle School Library, 3838 Orange Avenue, San Diego, CA, 92105. The meeting starts at 5 p.m. and will end by 6:30 p.m. The topics will include:

• Overview of the 2025-26 First Interim Budget
• Key financial priorities and challenges
• Opportunities for community input