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What happened in the spring legislative session in鈥疭pringfield and how did it affect Chicago Public Schools鈥� budget for next school year?

Illinois lawmakers a $55鈥痓illion spending plan that boosts the Evidence鈥態ased Funding (EBF) formula for K鈥�12 schools by $307鈥痬illion for FY2026. Chicago Public Schools (CPS) will receive roughly $30鈥痬illion鈥痶o鈥�$60鈥痬illion of those funds, and has already factored that amount into its budget projections for next school year. While any increase helps, CPS is left relying on other funding sources to close its budget deficit.

What does CPS鈥檚 budget deficit look like for next school year?

CPS projects a deficit of $829 million. To shrink that gap, the district is $600鈥痬illion in new, yet鈥憈o鈥慴e鈥憇ecured revenue from the city and state. With that optimistic assumption, CPS released a budget showing a $229鈥痬illion shortfall and promised few鈥攊f any鈥攕chool-level cuts, as long as the additional funding comes through.

Why did the Mayor, teachers union, and principals union push back on the school budgets CPS released?

Critics the spending plan is built on shaky ground: over $600鈥痬illion in revenue that neither the City Council nor the Illinois General Assembly has committed to. That total includes at least $300鈥痬illion in Tax鈥疘ncrement鈥疐inancing (TIF) surplus the city won鈥檛 even consider distributing until later this fall. Because the newly passed state budget offered no additional relief for CPS beyond the EBF increase, some argue the district is promising resources it may never have, setting schools up for mid鈥憏ear cuts if the money falls through.

What is driving CPS鈥檚 rising deficit?

Nearly four鈥慺ifths of CPS鈥檚 budget pays for salaries, benefits, and pensions. Next year, those personnel costs jump sharply鈥攁bout $375鈥痬illion鈥攍argely due to the new contract with the Chicago Teachers Union. Add rising health鈥慶are expenses and increased inflation鈥憆elated operating costs, and CPS is staring at almost $500鈥痬illion in new expenses.

Could the district鈥檚 deficit grow even larger?

Yes. Two pending board decisions could add more than $200鈥痬illion in new costs with no matching revenue: (1) reimbursing the City of Chicago $175鈥痬illion for part of its required payment to the Municipal Employees' Annuity and Benefit Fund (MEABF), and (2) covering an estimated $30鈥痬illion in start鈥憉p and transition costs if CPS converts up to five former Acero charter campuses into district鈥憆un schools. On top of that, it鈥檚 also possible that the federal government could cut education funding. CPS receives about 10% of its funding from the federal government, so even modest reductions could make a challenging budget year even harder.

What does all this mean for CPS families heading into next school year?

A new interim CEO must deliver a balanced budget by late August. If the hoped鈥慺or $600鈥痬illion never materializes, CPS may be forced to take one or more difficult steps: cutting school budgets mid鈥憏ear, taking out a costly short鈥憈erm loan, or resorting to risky 鈥渟coop鈥慳nd鈥憈oss鈥� debt restructurings. Outgoing CEO Pedro鈥疢artinez has that a large TIF surplus is the cleanest fix, but it is unclear whether his successor鈥攐r City Hall鈥攚ill back that approach.

Families should keep a close eye on CPS鈥檚 summer board meetings and year-end decisions from City Hall and Springfield. What happens in those rooms will decide whether schools keep the staff and programs students and families count on.