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Shortly after the Chicago Board of Education heard a budget proposal by Chicago schools interim CEO Macquline King that did not include a loan or pension reimbursement to the city, a majority of members sent her a letter with a demand: Include the loan and pension payment.
Eleven of the 20 current board members signed the letter sent to King Wednesday during a board meeting where Chief Budget Officer Mike Sitkowski presented the district’s proposed $10.2 billion budget, said Norma Rios-Sierra, an appointed member of the school board who signed the letter obtained by Chalkbeat. The letter was sent after Sitkowski’s presentation, she said.
The proposal, which covers the 2025-26 school year, avoids beginning and midyear cuts to schools, but includes other cuts, including to custodians, hot meals, and central office. It does not commit to reimbursing the city with a $175 million pension payment for non-teaching CPS staff unless the district receives more money than expected from a city pool of taxpayer dollars meant to spur economic development — known as TIF — or from the state. The proposal also excludes any plans for a short-term, high-interest loan to cover costs.
District officials, who were charged with closing a $734 million deficit, said including the pension reimbursement would result in cuts to schools. They have argued that short-term borrowing could lead to a downgrade in the district’s already junk bond-rating status and lead to debt with high interest rates.
Board members were split on the proposal during the Wednesday board meeting, with some elected members expressing support while largely mayoral-appointed members said the city is foregoing its responsibilities by passing up the payment, which would help the city close its budget as it faces its own financial challenges. Earlier this week, Mayor Brandon Johnson said he was expecting CPS to fulfill the pension reimbursement.
In addition to Rios-Sierra, the letter was signed by appointed board members Olga Bautista — the board vice president — Michilla Blaise, Karen Zaccor, Debby Pope, Emma Lozano, Edward Bannon, Anusha Thotakura, and Cydney Sylvan Wallace. Elected board members Jitu Brown and Ebony DeBerry also signed. Johnson appointed 11 members, but former member Frank Thomas stepped down and has not been replaced.
The letter, first reported by the Chicago Sun-Times and WBEZ, insisted on changes to the budget proposal before it had to be published online by Wednesday in order for the board to vote on the budget Aug. 28, one of the last days the board can legally adopt a budget for this fiscal year. The members’ requested changes don’t appear to be in the proposal posted online, but the letter signals that King’s proposal has for now lost a majority of support needed on the board to pass.
CPS spokesperson Mary Ann Fergus confirmed King received the letter Wednesday evening but did not provide further comment on the board members’ request.
“There are other components we believe could potentially work as presented, but this loan provision, along with the [Municipal Employees’, Officers’ and Officials’ Annuity and Benefit Fund] disentanglement, is critical to keep in place today to preserve our ability to act on them,” the letter said. “It would be difficult for us to support a budget without these two changes.”
The letter does not specify a loan amount or interest rate to be included. The Chicago Tribune reported Tuesday that City Hall had pitched to CPS to take out a $200 million loan. Last year, City Hall asked CPS to take out a $300 million loan to cover the pension payment and labor contract costs. The letter says the loan “should be included as an option to be utilized only in the event it is necessary to avoid further cuts to the classroom.”
“Leaving it out at this stage would unnecessarily limit our flexibility as we continue discussions and refine the proposal,” the letter said.
Board members also wrote that they support the district “continuing the disentanglement” of a pension payment to the city for non-teaching CPS staff — a reference to reimbursing the city with the $175 million payment.
CPS is not legally required to reimburse the city for that payment, which contributes to a $1.3 billion municipal pension fund. The district has previously paid it, starting under former Mayor Lori Lightfoot. Former CPS CEO Pedro Martinez’s refusal to reimburse the city with that payment as CPS faced budget challenges last year helped lead to his firing.
Reema Amin is a reporter covering Chicago Public Schools. Contact Reema at ramin@chalkbeat.org.
