Chicago Public Schools Faces Budget Challenges Amid Rising Costs

Chicago Public Schools (CPS) officials expressed urgency on Monday for passing the district’s $9.88 billion budget. Without approval, CPS risks missing payroll for 45,000 employees in September. CPS CEO Macquline King emphasized that missing payroll could disrupt services for students. The Board of Education is set to vote on the 2026-27 budget on July 30, ahead of the state-mandated deadline.

As part of its new spending plan, CPS announced over 700 teacher layoffs and a planned spending freeze starting January. If additional funding is unavailable from state or city sources, CPS may convert five paid professional development days into furloughs. The Chicago Teachers Union (CTU) urged the board to reject the proposal at a budget hearing, but CPS leaders insist on the need for an approved budget to secure short-term borrowing.

CPS uses tax anticipation notes (TANs) to manage cash flow from property tax payments. Delays in Cook County property tax payments have increased this reliance. Outside CPS headquarters, CTU members protested before a Board of Education meeting on the 2027 budget, advocating for more state or external revenue. The district’s funding stands at just 73% of the adequacy target according to the state’s Evidence-Based Funding formula.

Board member Jitu Brown, representing District 5A, expressed feeling pressured to decide. He highlighted concerns about the budget’s impact on classrooms, despite claims of equity and minimal effect. Teachers and staff, many wearing red CTU shirts, urged reversing campus cuts during public comments. Board member Debby Pope questioned the consistency of cutting teachers with a student-focused budget.

CPS leaders defend the cuts as necessary to address a $732 million deficit. King noted that furloughs are a last resort, chosen to limit student disruption by falling on non-instructional days. Each furlough day saves $17 million, but cuts 2% of teacher pay, halving their contractual raises. CPS aims to avoid these cuts by securing additional funds.

The district seeks other revenue options, including from tax increment financing districts and Cook County’s interest-free loan program. This program could mitigate late tax revenue costs and reduce reliance on TANs, although county officials have yet to decide on CPS’s participation. Last year, CPS paid $43 million in interest on short-term loans for delayed tax payments, funds that could have supported classrooms or reduced furloughs.

CTU held a rally before the meeting, with members raising signs and chanting for no cuts and no furloughs. CTU recording secretary Vicki Kurzydlo stated that students, educators, and communities should not bear costs of an issue they did not create.