Budget & finance

In a potentially final bid to whip up support for its budget, CPS officials said the desire to reimburse the city for a much-debated pension payment and taking out a $200 million loan would result in cuts to schools and a credit downgrade for the district.

Chicago Mayor Brandon Johnson and interim CPS CEO Macquline King rang the ceremonial first bell to mark the 2025-26 school year on the playground of Courtenay Language Arts Center.

The Chicago Board of Education is split on the district’s budget proposal for next school year. A group of mostly appointed members has asked CPS to alter its proposal that it includes a much-debated pension payment and loan.

Chalkbeat spoke to budget watchdogs, municipal finance experts, district officials, school board members, the teachers union, community groups, and civic organizations about possible solutions for Chicago Public Schools’ budget crunch.

Due to a drop in local tax revenue and a bump in English learner enrollment, Chicago Public Schools will receive an additional $76 million from the state. Earlier this year, district officials anticipated a $25 million increase from the state.

CPS will cut seven private custodial contracts, resulting in the loss of 480 full-time custodian jobs. The move is estimated to save $40 million.

Mayor Brandon Johnson, as well as CPS and Chicago Teachers Union officials, hailed the initiative’s expansion even as they acknowledged the fiscal pressures that could endanger it.

State lawmakers said they’re ready to collaborate with the Chicago school board to find funding solutions, but did not commit to a special session or additional education funding.

Board of Education President Sean Harden said borrowing money could be a short-term fix to avoid “draconian cuts” to schools.

More than 1,450 staff at schools were laid off Friday. Budget documents posted online indicate the school-based workforce could shrink by more than 450 positions.

CPS owes teachers retroactive raises for last school year and could be making more school-based cuts this month as it works to close a gaping deficit.

Congress approved the support for English learners and afterschool programs. But the dollars expected on July 1 are now on hold, creating ‘unnecessary uncertainty,’ Sanders says.

Reductions target crossing guards and central-office employees. Trimming a $734 million deficit would require bigger moves.

The district is putting together a budget for the 2025-26 school year with no cuts to schools, but the proposal may not come to fruition.

A presentation used to brief school board members and obtained by Chalkbeat outlined potential cuts, many of which include staff and programs supported by federal COVID relief money. District officials and school board members look to lobby City Hall and Illinois lawmakers for funding.

The union said Monday that 85% of members voted on the deal over the course of last Thursday and Friday. Of the ballots cast, 97% ratified the agreement.

The district is hosting a series of virtual and in-person hearings to get feedback from families and residents as it starts work on its 2025-26 capital budget.

The declaration from seven school board members means the city does not have enough support from the Board of Education to get the $175 million it is seeking from Chicago Public Schools.

The mayor and the school board president characterized the meeting as productive. Chicago Teachers Union leadership and CEO Pedro Martinez emerged frustrated.

Ald. Jason Ervin and Chicago’s Chief Financial Officer urged school board members to approve a $175 million pension reimbursement and consider refinancing debt in order to foot the bill.