CPS leaders are citing rising pension payments and operating costs, while arguing the district needs greater support from state and federal leaders. Some policy analysts, meanwhile, say the district is responsible for its own deteriorating finances.

Rising unemployment could limit growth in personal income taxes while rising prices are making consumers more cautious, which could lead to lower sales tax collections.

“It’s not possible for us to take care of day care, Medicaid, Medicare — all these individual things,” President Donald Trump said. “They can do it on a state basis. You can’t do it on a federal.”

Facing a projected $2.2 billion gap and massive uncertainty over federal funding flowing into Illinois, Gov. JB Pritzker on Wednesday proposed a $56 billion state budget plan for fiscal year 2027 beginning July 1.

Progressive lawmakers want the governor to raise taxes on corporations and billionaires, while Republicans are hoping to keep spending flat in fiscal year 2027.

Gov. JB Pritzker had directed agencies to “identify immediate spending reductions, including efficiencies that will result in reduced spending” in a September executive order.

The district has set aside $500,000 for a participatory budget program in which residents will have an opportunity to submit ideas and vote on the category of projects they want prioritized.

“ICE has not made any city that they’ve gotten into safer,” U.S. Sen Tammy Duckworth said.  “In fact, in every city they’ve gone into, they’ve created chaos.”

The budget request for the upcoming fiscal year calls for only a minimal increase in K-12 education spending, a reflection of the state’s tightening fiscal condition.

Illinois lawmakers are back in Springfield for the spring legislative session. They’re facing some tough realities: a budget gap in the billions, growing pressure to deliver affordability relief, and a widening financial rift with Washington, D.C.

Mayor Brandon Johnson warned again on Wednesday that the Chicago City Council may have to make emergency cuts if revenue baked into the city’s 2026 spending plan fails to materialize.

Just 43 days after Cook County Board President Toni Preckwinkle introduced the spending plan that closed a $102.6 million gap in its general fund and a $108.8 million gap in its health fund, it sailed to final approval with little drama.

Budget negotiations between members of the Chicago City Council have accelerated following Mayor Brandon Johnson’s initial proposal, which he unveiled last week.

Cook County is putting forth a $10.1 billion budget proposal for the 2026 fiscal year. The plan includes no new taxes or fees, but officials warn of tough waters in the years ahead as potential federal funding cuts threaten to hit the county’s bottom line.

“We’re headed into pretty tough waters here, turmoil,” Cook County Board President Toni Preckwinkle said. “And I would anticipate … next year, and particularly the years after next, we’re going to be in a very difficult place as the federal government reduces its support.”

The funding freeze, which came despite a full funding agreement executed earlier this year, comes amid a broader anti-DEI push from the administration. In announcing the pause, federal officials said they’d be examining whether the Red Line Extension involves “race-based contracting” that Trump officials claim are discriminatory.