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CPS leaders unveil plan to fill $734M budget gap amid political tensions
Chicago Public Schools leaders unveiled how they plan to close a $734 million budget gap for the coming year. The solutions could be riling some feathers over in Mayor Brandon Johnson’s office.
CHICAGO - Chicago Public Schools leaders unveiled how they plan to close a $734 million budget gap for the coming year.
The solutions could be riling some feathers over in Mayor Brandon Johnson’s office.
What we know:
Recently-appointed CPS CEO Macquline King and her team unveiled the budget proposal at a public meeting before the district’s Board of Education on Wednesday, which was perhaps notable for what was not in it.
"We have not included adding to our $9 billion debt burden as a strategy to close the [fiscal year 2026] budget gap," said district Budget Director Michael Sitkowski.
He said a proposed $200 million borrowing scheme could be the death knell for the school district’s long-term finances.
"Borrowing for operating expenses would send the district into a downward spiral of credit downgrades, higher interest rates, and steeper cuts to staff, programs and services in the future," said Sitkowski.
On Wednesday, Sitkowski and King’s leadership team unveiled their 2026 budget to the board, saying they will close the budget gap without borrowing money. They will also push a $175 million employee pension payment onto the city, unless the city or the state comes through with additional funding to cover that cost.
What they're saying:
The plan was met with skepticism from board member Michilla Blaise, who was appointed by Johnson.
"We have to work with folks," Blaise said. "We have to be good partners. We have to collaborate and if we’re gonna act like we don’t care about the city budget, why should they care about ours?"
The budget plan was notable for the fact that it’s the exact same approach that former CPS CEO Pedro Martinez took before he was fired for refusing the short-term high-interest loan pushed by both the mayor and the Chicago Teachers Union.
Some parents’ groups offered praise to CPS leadership for pushing back on those plans.
"Thank you Dr. King for making the decision to protect classrooms by rejecting the $175 million … payment and avoiding new high-interest debt," said one parent. "This decision shows a commitment to putting families first, even in the face of intense pressure."
The Civic Federation, a nonpartisan government research organization, released a statement commending the district for its plan saying in part:
"The Civic Federation believes the Chicago Public Schools advanced a budget proposal that is more grounded in sound budgeting practices than it has been in the past, and that chips away at a structural deficit by more closely aligning expenditures with reasonable revenue projections. The district deserves credit for continuing to resist calls from City Hall to make a massive transfer of funds it does not have and engage in costly short-term borrowing that would harm the district’s credit rating and increase its future deficits."
CPS leaders said they will close the budget gap through TIF money, debt restructuring and cuts outside of the classroom.
Sources at City Hall and at CPS said there is some real contention about the budget plan.
What's next:
The board has until Aug. 28 to review the budget proposal and vote on whether to accept or reject it.