Education
Chicago Board of Education Members Weigh How to Close $732M Budget Gap
Chicago Public Schools is facing a $732 million budget shortfall — and hundreds of layoffs for teachers and school support staff.
Last week, CPS CEO Macquline King unveiled a proposed $9.88 billion budget to close the district’s funding gap. The plan calls for $200 million in Tax Increment Financing, or TIF, funds from the city, the layoff of 760 teachers and 801 support staff, and five unpaid furlough days for CPS employees.
King told reporters last week that her budget focuses on cuts away from the classroom and students.
“We are not budgeting for the district we had yesterday,” King said. “It is imperative we are budgeting for the students we serve today and the futures of tomorrow.”
CPS board members, who have until Aug. 31 to approve a final budget, disagree over how the district’s deficit grew so large and how to close it.
Jennifer Custer, a board member representing District 1B, is pointing the finger at Cook County officials who she says have dragged their feet on disbursing revenue from local property taxes.
“We are having some issues with our short-term cash flow because the county hasn’t delivered some of that money to us,” Custer said.
The majority of CPS funding flows from local property taxes, but recent payments to the district have been late. As a result, CPS has been forced to borrow money through tax anticipation notes (TANs) to cover short-term costs.
Custer said board members must vote to approve King’s proposal by the end of July or the district will not be able to continue borrowing.
“We have to pass this budget by July 30 for the district to go to the banks, get all their legal paperwork and financial paperwork in order so we can take out more TANs,” Custer said. “We have to get this done in a timely fashion, so the district has enough time to get that cash flowing in so we can open and operate at the beginning of the school year.”
Meanwhile, some board members have called for a special session in Springfield to close the shortfall.
Jitu Brown, a board member representing District 5A, said lawmakers at the state level have not done enough to fund CPS.
“I think it’s very important to note that you have states like California, where a little over 50% of the local schools’ budgets are covered by the state. In Chicago, we are far below that,” Brown said. “It’s also important to remember that for decades, Illinois, despite having an international city in its midst, was 49th in education funding. … It is time for the state to do some get-right by its children.”
Illinois’ evidence-based funding plan, a law signed in 2017 meant to provide more funding to undersourced school districts, says CPS is $1.6 billion short of “adequate” funding.
Custer said that even if a special session were approved and the state agreed to send more money, it’s unlikely that money would arrive quickly enough to help CPS in the short term.
“Those (state dollars) wouldn’t be realized in this budget to help us in the crisis we’re in now. They wouldn’t show up until next year,” Custer said. “Just because we call for a special session doesn’t mean any of that money will come to our door.”
Board members also disagree on the Chicago Teachers Union’s role in the budget process. In a statement, CTU President Stacy Davis Gates criticized King’s proposal, calling it “dead on arrival.”
“Students have had to learn in overcrowded classes, practice under unpaid coaches, and be counseled by caseworkers with loads beyond compare all year, and now CPS thinks they can plan a week of furloughs and tell the staff who serve them they don’t have a job? Please,” Davis Gates said.
But Custer said CTU has not made an effort to collaborate on the budget process.
“I think we’ve heard President Davis Gates come and say all the time, ‘come to the table.’ But I don’t think she’s reciprocating that notion,” Custer said. “If you just come in and say, ‘No, we’re not gonna do this. This is dead on arrival,’ it’s not true collaboration,” Custer said.
Brown said district leaders should have spent more time earlier in the year working with CTU to lobby for progressive revenue in Springfield.
“As Chicago Public Schools, we could have been working in harmony with the city of Chicago, labor unions and community-based organizations since the beginning of this year to call for progressive revenue solutions,” Brown said. “We don’t move like we understand how to be in coalition. … I do not believe that the Chicago Teachers Union should be demonized in this moment.”
While King’s spending plan closes the $732 million budget gap, the district has long-term, structural challenges when it comes to finances. Moving forward, Custer said CPS needs to do a better job of tightening its belt.
“The reality is that our district and many districts across the country are funded based on local funds and not necessarily on federal and state funds,” Custer said. “We have a finite amount of money that we can use and that we can build with, and we have to live within our means.”
Board members are expected to vote on King’s proposal at their next meeting July 30.
WTTW News education reporting is supported, in part, by Press Forward Chicago.
