Chicago Public Schools (CPS) leaders are emphasizing the urgent need to pass the district’s $9.88 billion budget this month. Failure to approve the budget threatens the ability to meet payroll for 45,000 employees. CPS CEO Macquline King stated that without approval, payroll for September would not be possible, which would disrupt student services.
The Board of Education will vote on the 2026-27 budget on July 30, preceding the state-mandated deadline by a month. The district announced over 700 teacher layoffs with the proposal. CPS also plans a spending freeze and converting five professional development days into furloughs if additional funding from the city or state doesn’t come through.
Despite opposition from the Chicago Teachers Union (CTU), which called for the proposal’s rejection, CPS insists an approved budget is crucial for securing short-term borrowing. The district relies on tax anticipation notes (TANs) to manage cash flow between property tax payments, which have faced delays, increasing reliance on borrowing.
Several board members, including Jitu Brown of District 5A and Debby Pope of District 2B, voiced concerns about the budget’s impact on schools. They called for a clear strategy for securing additional state or external revenue.
The state’s Evidence-Based Funding formula covers only 73% of CPS’s adequacy target. CTU and CTU-aligned board members are urging state lawmakers to convene a special session for more funding.
Amid these challenges, CPS faces a $732 million deficit. District leaders see proposed cuts as necessary, viewing furloughs as a last resort. Each furlough day could save $17 million, although it would reduce teachers’ pay by about 2%, impacting their contractual raises.
King highlighted efforts to find new revenue sources, such as tax increment financing districts and Cook County’s interest-free loan program. The latter could potentially offset some costs related to delayed property tax revenue, reducing dependency on costly loans.
CPS paid $43 million in interest on short-term loans last year due to delayed property tax payments. King stated that the amount could fund three furloughs, advocating for discussions to include CPS in Cook County’s loan program.
The district’s financial pressures stem from rising costs, aging infrastructure, and over $9 billion in long-term debt. Prior to the meeting, CTU organized a rally, stating that Chicago students and educators unfairly bear the crisis’s costs, demanding no cuts or furloughs.