Chicago Public Schools Board Faces Urgent Budget Decisions Amid Funding Concerns

Chicago Public Schools (CPS) leadership stressed the importance of passing the district’s $9.88 billion budget this month to avoid payroll issues. CPS CEO Macquline King highlighted in an interview that not approving the budget would prevent the district from paying its 45,000 employees, disrupting services for students.

The Board of Education plans to vote on the budget for the 2026-27 academic year by July 30, which marks a month before the state-mandated deadline. Recently, CPS laid off over 700 teachers and proposed potential spending cuts, including converting development days into furloughs if additional city or state funding is not secured.

Despite the Chicago Teachers Union’s call to reject the budget proposal, CPS leadership insisted that delaying the vote was not an option. The district needs an approved budget to manage short-term borrowing through tax anticipation notes (TANs), which help balance cash flow between property tax payments. Delays in property tax distributions from Cook County have accentuated the district’s borrowing needs.

Protests fueled by the Chicago Teachers Union took place outside CPS headquarters. Board members are pressing CPS leaders for a clear strategy to obtain more state and external revenue. According to the state’s Evidence-Based Funding formula, CPS receives only 73% of its adequacy target which has prompted CTU and its allies to urge lawmakers to approve increased funding.

During public commentary, teachers and staff expressed alarm over proposed cuts, particularly questioning the impact on special education. Board member Debby Pope noted discrepancies between reports from educators and the budget’s stated focus on student needs.

District leaders have argued that the layoffs and potential furloughs are necessary to address a $732 million deficit. If enacted, furloughs would occur on non-instructional days, intended to save $17 million per furlough day. These measures could reduce teachers’ pay by 2%, affecting their contractual raises.

Alternative revenue sources remain under investigation by district leaders. These include potential funds from tax increment financing districts and participating in an interest-free loan program offered by Cook County. Such participation could reduce CPS’s dependence on costly short-term loans, with last year seeing $43 million in interest payments alone.

CPS’s financial struggles, attributed to escalating costs, deteriorating infrastructure, and over $9 billion in long-term debt, have persisted for years. Before the board meeting, CTU organized a rally, advocating against cuts and furloughs, declaring the burden unfairly placed on Chicago’s students and educators.