CPS budget approval avoids shutdown but adds to city deficit

CHICAGO - Civic leaders and lawmakers are praising the Chicago Board of Education for approving a budget Thursday night that had been on track to fail.

The vote means Chicago Public Schools students and parents can breathe a sigh of relief. The deadline was Friday, and a rejection could have triggered a shutdown.

What we know:

A majority of board members had initially opposed the plan because it excluded short-term borrowing and a $175 million pension payment sought by Mayor Brandon Johnson and the Chicago Teachers Union. But heavy lobbying on both sides flipped enough votes to secure approval.

Instead, the budget relies on $379 million in tax-increment financing revenue the mayor will send to CPS.

Civic Federation President Joe Ferguson called it an imperfect solution but said residents can see the outcome as "glass half full," since the board rejected the borrowing plan Johnson had pushed.

"People that the mayor appointed actually asked for the information, analyzed it, looked at it, understood the broader institutional and political context and came to their own independent assessment of what the facts and the numbers actually were and most importantly, they acted on it," said Ferguson.

The CTU, however, criticized the decision. 

"Today's vote by the Board of Education to approve this imbalanced budget will cost Chicago Public School students…," the union said, warning it will lead to mid-year cuts — a claim CPS leaders deny.

Impact on City's Budget:

The city released its budget projections Friday, showing a $1.1 billion deficit for next year. That number could grow to nearly $1.3 billion with the pension costs shifted back onto City Hall.

Johnson acknowledged the city will have to tighten spending. 

He noted he has already declared a record TIF surplus this year and said he remains committed to ensuring CPS has the funding it needs.