As Chicago’s summer comes to an end, Chicago Public Schools (CPS) officials are facing a daunting challenge: filling a significant budget deficit and achieving a legally mandated balanced budget by the time students return to class in August.
CPS is grappling with a cash crunch and a staggering budget shortfall of $734 million. Officials have noted that they have already identified roughly $165 million in potential savings by laying off some central office staff and crossing guards, alongside implementing various operational efficiencies.
This leaves district leaders in search of an additional $569 million, either through further savings or new revenue. This figure doesn’t account for possible cuts in federal funding, which could arise under President Donald Trump’s administration.
Concerns mount as CPS anticipates an even larger deficit of nearly $1 billion next year, with prolonged budget gaps expected in subsequent years. Chief Budget Officer Mike Sitkowski highlighted that structural changes, like cost reductions or new funding sources, will be crucial for the district’s fiscal health both now and in the future.
“One-time actions will not help us eat into some of these big figures,” Sitkowski remarked during a recent board meeting.
The roots of this budget crisis extend back decades, according to former school board member and University of Illinois Chicago associate history professor Elizabeth Todd-Breland. The inadequate state funding in Illinois has historically placed excessive reliance on local property taxes, thereby perpetuating disparities in funding across wealthier and less affluent communities. Todd-Breland labeled this situation as “manufactured inequality,” adding that CPS is now confronting the legacy of historical funding decisions.
Moreover, the financial dilemma is exacerbated by rising staffing and operational costs. Staffing has proven to be the most substantial budget item for CPS, and the expenses continue to grow. For years, CPS operated with a shortage of personnel relative to the number of students enrolled, especially considering the large proportion of students from low-income families, those with special needs, and English-language learners who require additional support.
For instance, the National Association of Social Workers suggests one social worker for every 250 students. Yet, during the 2017-2018 school year, CPS had just one social worker for every 1,400 students. Things began to shift in 2019 when CPS made a concerted effort to enhance staffing levels.
Lawmakers in Illinois instituted a new funding distribution method for schools, which came with a commitment for gradual increases in state funding. A significant teachers’ strike also prompted CPS officials to expand hiring, ensuring every school had a dedicated nurse and social worker. Subsequently, CPS received $2.8 billion in federal COVID relief funding, with decisions made to allocate over 50% of these resources towards employee salaries, compared to an average of 33% in other districts.
By September of last year, the number of CPS employees had swelled by 7,000 since September 2019. The influx included more custodians, building engineers, and educational support staff such as nurses and social workers, resulting in a student-to-social-worker ratio improvement from 1:1,400 to approximately 1:500.
However, these pivotal staffing additions, along with raises for existing employees, resulted in an additional $826 million in salary expenses compared to six years ago. An increasing focus on supporting students with special education needs has also driven costs, with CPS hiring around 1,100 more special education teachers and nearly 3,000 additional classroom aides. At the same time, the enrollment of students requiring special education services rose from 14.6% in 2019 to 16.4% in 2025.
Sitkowski noted that CPS is now spending $450 million more on special education than it did six years ago, yet this burden is not matched by proportional increases in state and federal funding, leading to a significant financing gap.
Transportation for students has added another layer of expense to the CPS budget. The district requires yellow school buses for students with disabilities, as mandated by law, and it offers limited bus services for elementary school students attending magnet or selective-enrollment schools. A nationwide shortage of drivers that emerged post-pandemic resulted in many students losing access to needed services.
In the 2024 budget, CPS allocated $160 million for student transportation, marking an increase from the previous $120 million. Rising wages aimed at attracting new drivers have contributed to this cost escalation.
Building maintenance and repair needs present another budgetary challenge. Many CPS facilities are on average 85 years old, and a 2023 assessment identified a staggering $14 billion in necessary repairs, with $3 billion classified as critical. The district lacks the means to generate its own funding for these repairs and resorts to borrowing money. However, these efforts have not yielded sufficient results, leaving a long list of maintenance needs unaddressed.
An increase of $100 million in annual maintenance costs compared to 2019 has further strained the budget, according to Sitkowski.
Debt management also siphons off millions of dollars from the school’s budget before any funds can be allocated to current educational needs. This drain is compounded by pensions, as CPS faces over $600 million in contributions for teachers’ pensions next year, with costs growing by roughly $100 million annually since 2023.
CPS is unique in that it bears a heavier financial load for teacher pensions compared to other school districts in Illinois. While the state subsidizes 97% of employer contributions to the statewide teacher pension system, CPS only receives 35% support.
Historically inequitable policies and inadequate state funding have led to this problematic financial landscape. Additionally, non-teaching staff in CPS are part of the city’s municipal pension fund. Prior to 2020, the city fully covered the employer contribution, but former Mayor Lori Lightfoot initiated a shift asking CPS to contribute, a move that has continued under Mayor Brandon Johnson, leaving CPS responsible for a $175 million contribution included in the current deficit.
In sum, as CPS prepares for the new school year amidst substantial financial hurdles, the need for a comprehensive reevaluation of funding sources and budgetary structures becomes increasingly evident. The district’s long-standing reliance on inadequate funding models paints a concerning picture for its future viability and equality in educational opportunities.
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