Lead: Union leaders and San Francisco Unified School District officials reached a tentative $183 million contract early Friday, Feb. 13, 2026, ending the city’s first teacher strike in nearly 50 years and clearing the way for classrooms to reopen next week. The two-year deal provides the equivalent of a 6% pay increase for certificated staff, a phased path to fully funded family health benefits and concessions from both sides. Officials cautioned the agreement must still be ratified by the school board and a majority of union voters, and they warned the settlement will intensify fiscal pressure on a district already facing a multi-million-dollar shortfall. Parents and educators celebrated the bargaining breakthrough even as leaders prepared for difficult budget decisions ahead.
- Deal size: The tentative package totals $183 million over two years, according to district and union officials.
- Salary terms: Teachers will receive a combined 6% gain over two years — a 2% raise each year plus the equivalent of another 1% annually tied to adding two professional learning days to the calendar.
- Health coverage: Family health benefits will be fully funded starting Jan. 1, 2027; the district will cover 50% of those costs beginning July 1, 2026, with the union pausing paid sabbaticals to help fund the initial phase.
- Paraeducators and security aides: Paraeducators and security aides get a 9% increase over two years; specialized paraeducators receive an additional 5%.
- Fiscal strain: The district faces a projected deficit of more than $30 million next year after already making $114 million in current-year cuts and will draw heavily on roughly $400 million in restricted reserves to cover early costs.
- State funding loss: Superintendent Maria Su estimated lost state revenue tied to lower attendance during the strike at roughly $7 million to $10 million per day.
- Approval and timing: The tentative pact requires school board approval and a union ratification vote; schools remained closed Friday and are scheduled to reopen Wednesday after the holiday weekend.
Background
San Francisco Unified School District (SFUSD) and the United Educators of San Francisco (UESF) have been bargaining amid long-running concerns about educator pay, health benefits and staffing levels in a city where housing costs and living expenses are high. The strike — the first of its kind in roughly half a century — unfolded against a backdrop of deep budget cuts this year, including $114 million in program and position reductions as leaders tried to bring expenses in line with revenues.
District finances have been strained for several years. SFUSD operates on an approximately $1.3 billion annual budget; officials say that budget faces a roughly 15% increase in obligations that the tentative agreement will further magnify. The district has accumulated about $400 million in fund balances, but much of that money is restricted by state or local rules, limiting flexibility for one-time or ongoing commitments.
State oversight has been a recent factor: fiscal experts appointed by the state monitor SFUSD’s finances and can veto board spending perceived to risk insolvency within the next couple of years. At the same time, local political tools that helped pay for educator compensation — including the 2008 Proposition A parcel tax — face expiration in 2028, making long-term revenue planning uncertain.
Main Event
Negotiations culminated in a tentative agreement announced in the early hours of Friday, Feb. 13, 2026. The contract’s headline numbers are a $183 million price tag and an effective 6% compensation gain for certificated staff over two years: a 2% across-the-board raise for this school year and the next, plus pay equivalence tied to two added professional learning days each year. Those additional days will include training on issues such as federal immigration enforcement.
Health-care changes were central to the talks. The deal establishes fully funded family health benefits starting Jan. 1, 2027, with the district covering 50% of those costs beginning July 1, 2026. To help fund the initial ramp-up, the union agreed to pause paid sabbatical leave. District leaders said they intend to seek a renewal of local parcel tax revenue and other measures to sustain the benefit funding long term.
The parties left several contentious items unresolved or scaled back. The agreement falls short of the 9% raise the union originally sought and does not include major new workload reductions for special education staff — proposals that union negotiators said would have added more than $50 million in costs. Paraeducators and security aides secured a 9% raise over two years, with specialized paraeducators receiving an extra 5%.
Following the announcement, principals who had joined picket lines and many teachers remained paid but not required to return in person the day the deal was announced; schools were closed for the day and then remained off for a long holiday weekend, with class resuming the following Wednesday. The tentative agreement now goes to the school board for review and to union members for ratification before it becomes final.
Analysis & Implications
The agreement resolves an intense but brief labor standoff that highlighted trade-offs between improving educator compensation and preserving district financial stability. In the short term, SFUSD will have to tap sizable reserves and potentially reallocate one-time funds to meet the contract’s early-year costs, a strategy that raises concerns about sustainability over the longer horizon. Officials warned that once restricted reserves are spent, fewer options remain in future downturns.
Even before this settlement, the district projected a structural shortfall: more than $30 million next year after steep cuts this year. The new contract will add recurring costs at a time when state funding formulas and local revenues may not keep pace. State-appointed fiscal advisers retain the authority to block board actions they judge to create insolvency risk; it was not yet clear whether those advisers had reviewed the tentative deal.
Operationally, the pact’s addition of two professional learning days each year aims to standardize training time and reduce uncompensated after-hours work, but it also shifts compensation mechanics away from pure salary increases toward calendar-based adjustments. The limited gains for special education workload adjustments mean pressure on special educators is likely to remain, and advocates may press for follow-up bargaining or programmatic investments.
Comparison & Data
| Category | Contract Offer | Timing |
|---|---|---|
| Certificated staff raise | 6% over two years (2% each year + 1% equivalent via added days) | FY 2025-26 and FY 2026-27 |
| Paraeducators & security aides | 9% over two years | FY 2025-26 and FY 2026-27 |
| Specialized paraeducators | Additional 5% | FY 2025-26 and FY 2026-27 |
| Family health care | 50% district contribution starting July 1, 2026; fully funded Jan. 1, 2027 | 2026–2027 phased |
| District reserves | ~$400 million (largely restricted) | Existing balances |
The table underscores how the package mixes immediate salary increases with phased benefit changes and calendar adjustments. District leaders told negotiators the settlement will consume much of the district’s flexible reserves in the near term; that will constrain spending on programs and staffing unless new revenues are secured, such as a renewed parcel tax or other local measures.
Reactions & Quotes
District and union leaders framed the outcome differently but acknowledged the need for compromise as parties weighed educator stability against fiscal reality.
“This is a monumental tentative agreement with the United Educators of San Francisco. This agreement enhances our efforts to recruit and attract talented educators to work in San Francisco public schools,”
Maria Su, SFUSD Superintendent
Union leadership emphasized solidarity and the gains secured for families and staff.
“This historic strike built an unbreakable solidarity across our city. We’ve made important progress towards the schools our students deserve,”
Cassondra Curiel, President, United Educators of San Francisco
School board leadership highlighted the balance sought between honoring educators and protecting long-term fiscal health.
“Our educators are the backbone of our school communities. As a district still in fiscal recovery, it is imperative that we find a solution that honors our educators while also ensuring long-term fiscal solvency,”
Phil Kim, President, SFUSD School Board
Unconfirmed
- The precise number of strike days counted toward state funding loss showed inconsistent references; district officials cited lost funding for five days while other notices described the action as a four-day strike.
- It was not yet verified whether state-appointed fiscal advisers had reviewed or approved the tentative agreement before its announcement.
- Specific layoff notices or program cuts tied directly to funding the contract have not been finalized; mid-March preliminary pink-slip deadlines remain a key milestone.
Bottom Line
The tentative agreement ends an historic labor action and secures measurable pay and benefit improvements for San Francisco educators, including a path to fully funded family health care. But the settlement forces difficult budgeting choices: it uses one-time reserves and limited flexible funds to meet short-term obligations while leaving open questions about sustainability, program impacts and staffing in future years.
Next steps to watch include school board review, the union ratification vote, any review by state fiscal monitors, and local efforts to shore up recurring revenue — notably a possible renewal of the Proposition A parcel tax before it expires in 2028. With preliminary layoff notices looming in mid-March, district leaders will have to balance honoring the agreement with avoiding deeper program cuts that could affect students across SFUSD.
Sources
- San Francisco Chronicle (local news report)
- San Francisco Unified School District (official district website)
- California Department of Education (state education agency)