Stacy Davis Gates, the President of the Chicago Teachers Union, voiced her support on Monday for the Chicago Public Schools (CPS) to consider borrowing funds to alleviate a substantial budget deficit estimated at $529 million.
Davis Gates emphasized that this decision reflects the city’s commitment to its public schools and the well-being of its students. She expressed concern that failing to find adequate funding would result in detrimental impacts for students across Chicago.
At a gathering held at the City Club of Chicago, she lamented the consequences of budgetary decisions, asserting that insufficient funding led to critical shortages in teaching staff at schools like Julian High School and Clemente High School.
“The budget and its choices manifest into real impact that our young people get to experience,” Davis Gates stated. “So choices about the budget left students at Julian High School in 2025 without a math teacher for nearly a year, Clemente High School without a chemistry teacher. … Those are not occurrences. Those are choices.”
Her remarks came shortly after the termination of former CPS CEO Pedro Martinez, whose firing was partly attributed to his opposition to the idea of borrowing to cover the previous year’s deficit.
Martinez, who was allowed to finish the school year following his dismissal without cause, stood by his position that borrowing would only worsen the district’s financial woes. He recently defended his approach at the City Club, insisting that he acted according to his principles.
Presently, CPS is grappling with an even larger deficit than last year’s, leaving many to speculate that deep cuts to school funding may be one of the few viable alternatives if borrowing fails to gain traction. During his tenure, Martinez recommended that the city increase financial support through its tax increment financing districts, suggesting that an infusion of $300 million in new revenue would be necessary for the upcoming academic year.
However, with the city facing its own budget constraints, there are no immediate plans to allocate additional funds to CPS.
As the new interim CEO, Macquline King began her first week on the job with a mission to scrutinize the budget closely before making decisions regarding borrowing. King, who has ties to Mayor Brandon Johnson’s administration, hinted at the potential for finding efficiencies within the budget as an alternative to seeking a loan.
Despite King’s cautious approach, there remains uncertainty about whether the school board would support a significant borrowing strategy. Some board members, including those appointed by the mayor and even some who have been aligned with the Chicago Teachers Union in past elections, have raised objections to the idea of borrowing.
The fiscal watchdog, the Civic Federation, has warned that the state might consider taking over the financial management of CPS, as it did in the early 1980s. At that time, the School Finance Authority facilitated loans for the district which required specific tax levies to ensure repayment, alongside implementing budget cuts.
Davis Gates accused the mayor of backing borrowing measures mainly as a short-term solution, avoiding necessary layoffs or cuts to programs. In her view, the more significant challenge is to advocate for increased state funding, noting that CPS is currently missing out on approximately $1.2 billion that the state’s own funding formula suggests should be provided annually.
Additionally, CPS faces the risk of losing federal funding due to investigations launched by the U.S. Department of Education over potential violations of Title IX related to its Black Student Success Plan and policies regarding the bathroom and locker room use by transgender students.
In her address, Davis Gates drew parallels to the Reconstruction period in U.S. history, a time of rebuilding marred by challenges including political cowardice and waves of backlash against progress.
She linked these historical events to the current political landscape, implying a similar threat to public education linked to President Donald Trump’s initiatives to undermine it. Davis Gates warned that such actions are permeating into the daily realities faced by students and educators in Chicago, underscoring the urgent need for responsive leadership.
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