Chicago school board backs revised CPS budget relying on $150M from state

CHICAGO - The Chicago Board of Education approved an amended Chicago Public Schools budget Thursday after hours of tense debate.

The amended $9.96 billion budget passed in an 11-7 vote following a lengthy meeting that included an unusual two-hour recess as board members, CPS officials and attorneys worked through legal and financial questions surrounding the proposal.

What's changing?

Breakdown:

The biggest change to the budget removes roughly 1,000 planned job cuts that had been included in CPS' original proposal. Instead, the board approved a spending plan that assumes the district will receive an additional $150 million from the State of Illinois.

Supporters argued that the budget protects classrooms and school staff while giving lawmakers in Springfield time to provide more funding for public education.

But the money is not guaranteed.

During the meeting, several board members questioned what would happen if the state funding never materializes.

"Whatever $150 million would hire in terms of staff, what kind of cuts would we see if this amended budget could not get the financing that it is assuming? What kind of job furloughs and job cuts would we see?" Che ‘Rhymefest’ Smith, board member representing District 10A, asked during the meeting.

Jitu Brown, a board member who represents District 5A, described the concerns around the proposal as "fearmongering" and disputed legal concerns raised during the meeting, arguing similar budget approaches had been used in previous years.

"I have deep concerns about fearmongering and being pulled all of a sudden into a two-hour break because there's a particular proposal. I have deep concerns about legal telling us that somehow we're breaking the law when there was precedence not only in 2017, but 2015," Brown said.

CPS warns of financial uncertainty

The other side:

After the vote, CPS CEO Dr. Macquline King said the district had originally presented what she described as a "balanced, student-centered budget" that closed a $732 million deficit while addressing long-term financial obligations.

Instead, King said the board approved an amended budget that depends on revenue the district has not received and that has not been approved by the Illinois General Assembly or signed into law by the governor.

In a letter to families, employees and supporters, King warned that CPS is now evaluating what the board's action means both legally and financially.

She said the district currently does not know whether it will be able to secure the short-term borrowing needed to make payroll in September because Cook County property tax revenues are arriving later than expected.

"As it stands right now, though, we do not know if we will be able to secure the short-term financing needed to pay our employees in September, which would effectively shut down the district just as staff and students are set to return," King wrote.

She added that CPS cannot yet say whether the uncertainty could affect the planned Aug. 24 start of the school year.

CTU responds

What they're saying:

The Chicago Teachers Union applauded the board members who supported the amended budget, saying they chose to protect students and educators instead of balancing the budget through layoffs.

In a statement following the vote, the CTU praised board members who supported the amendment, saying they "overcame intimidation and threats from CPS lawyers" to pass a budget that assumes Illinois will provide funding the district is owed under the state's school funding formula.

"So what I'm asking you to do today is the thing that I'm willing to do. I am willing to take this as an opportunity to do the right thing and invest in our kids and do it with the people who do it every day for you," CTU President Stacy Davis Gates said during the board meeting.

The CTU contends Illinois has underfunded public education for years, saying CPS is still owed roughly $2 billion under the state's formula and that Gov. JB Pritzker and state lawmakers should provide those dollars.

"We get to start the school year on stronger footing," CTU said. "If we get to stay there or if we'll face layoffs and furloughs and freezes midyear is the sole choice of whether Gov. Pritzker chooses to work with Speaker Welch and Senate President Harmon to make good on the state's debt to its children."

What's next:

While the amended budget prevents immediate layoffs, significant financial questions remain.

CPS officials will continue working with board members, labor leaders and state officials as they determine whether the district can secure financing for payroll and whether Springfield will provide the additional funding included in the budget.