Chicago Public Schools Face Budget Crisis with Calls to Reject New Proposal

Chicago Board of Education faces significant financial challenges as it works to close a $732.5 million budget deficit. The board has proposed a new budget of $9.88 billion. This proposal includes an all-staff furlough, staff cuts, and a spending freeze in the middle of the upcoming school year. During recent budget hearings, teachers, staff, and representatives from the Chicago Teachers Union (CTU) urged board members to reject the proposal, claiming it would impact educators, students, and the operation of Chicago Public Schools (CPS) if approved.

The proposed budget includes district-wide furloughs and a mid-year spending freeze. According to the CTU, the furloughs are to take place on professional development days, resulting in a 2.3% pay cut. Union leaders have called for additional revenue to be allocated to schools and encouraged CPS board members to pursue legal action against Cook County over delayed property tax collections that have contributed to the district’s financial struggles. CPS estimates it is owed at least $250 million from late tax collections, while county officials have disputed that amount. As a result of these delays, CPS has relied on short-term borrowing to fund daily operations, costing the district $40 million in interest over the previous year.

Educators at previous hearings also expressed concerns about how past budget cuts have affected the educational environment. A teacher from Chicago’s Austin neighborhood said that multiple layoffs could result in limited teachers per grade level to even one teacher, resulting in class sizes of up to 47 students larger than a typical class size. An educator from Funston Elementary School reported ongoing maintenance issues, claiming a lack of custodial and pest-control services while dealing with a rodent infestation. Another concern raised by educators is that the proposed budget would limit resources available to students.

CPS leadership has acknowledged concerns surrounding the proposed budget. CPS’s CEO Macquline King described the budget proposal as “very painful” and said the district proposed furloughs only because of its financial circumstances. Emily Zoko, acting CPS budget director, said furloughs and a spending freeze are an “option of last resort.” Board members have discussed several possible solutions during these hearings regarding how additional revenue should be secured. Some members advocated for increased Tax Increment Financing (TIF) Surplus funding from the City of Chicago, while others advocated greater financial support from the State of Illinois. The Board of Education has until the end of August to approve the budget; however, district leaders are expected to adopt a proposal by July 30 to allow sufficient time to secure financing before the beginning of the academic year.

As the budget discussion continues, the Board of Education’s decision will determine whether furloughs, spending freezes, and staff reductions are implemented, depending on whether additional revenue is secured. The final vote will take place on July 30.