In her first meeting as interim leader of Chicago Public Schools (CPS), Macquline King revealed a staggering budget deficit of $730 million, an amount significantly higher than what her predecessor, Pedro Martinez, previously acknowledged.
King articulated her immediate priority: to finalize and pass the CPS budget transparently, equitably, and responsively to the needs of both schools and communities.
In the coming weeks, she plans to engage with various stakeholders to explore possibilities for reducing expenditures and generating new revenue.
King, a former principal who has worked as an educational policy advisor in the mayor’s office, also emphasized the importance of ensuring that schools open smoothly on August 18.
By placing the budget deficit at $730 million, King directly contradicts assumptions made by Martinez, who was released from his role just last week.
In the spring, Martinez had presented what he described as the best-case scenario budget to CPS principals, which included $300 million in anticipated funds from the city or state—funds that were not promised.
Additionally, he excluded a contentious $175 million pension payment that the city is obligated to make, which primarily impacts CPS employees.
This pension payment is now factored into the deficit, and it appears that King intends to allocate that money to the city.
Board member Jitu Brown expressed his gratitude toward King for her honesty about the budget deficit, stating, “You were just 100% honest about the budget deficit. And I want to say this, we haven’t had honesty up to this moment.”
Brown condemned Martinez’s budget predictions as deceptive and claimed they caused unnecessary stress for the district.
He shared his concerns regarding the budget deficit, revealing that he loses sleep over it.
Despite the precarious financial situation, Brown and other board members oppose major staff layoffs to address the deficit.
“I would not feel comfortable looking children in the eye knowing I voted to take away resources needed to educate them,” Brown remarked.
As uncertainty looms, it remains unclear how King and the board will address the deficit.
Both board members and union leaders have asserted that the state must step up to provide additional funding.
According to state calculations, CPS should be entitled to an additional $1.2 billion.
However, the state’s budget has already been ratified, making it improbable for the state Legislature to convene a special session for CPS funding.
Some stakeholders have also pointed to the city’s special taxing districts, known as TIFs, as a potential revenue source.
Nevertheless, CPS is already relying on the city to provide $298 million in TIF surplus funds, matching last year’s unprecedented amount from Mayor Brandon Johnson.
If CPS hopes to reduce the deficit, it will require Johnson to surplus even more, which experts believe may be unattainable given existing constraints.
CPS could consider borrowing funds to navigate the current school year while seeking new revenue for the next year, a proposal Johnson floated previously.
Martinez had criticized such borrowing as fiscally irresponsible, which was a contributing factor to his termination.
Despite the dire situation, some board members are resistant to the idea of incurring more debt.
CPS is already contending with substantial debt payments, and this contributes to the heightened deficit.
As King faces the daunting task of addressing this financial crisis, schools find themselves in a state of limbo.
Principals have received school-level budgets based on Martinez’s overly optimistic projections but are bracing for potential budget alterations in the weeks leading to the school year.
CPS has yet to announce any layoffs tied to the initial budgets, but unions have begun hearing about changes in staffing allocations, especially concerning special education aides and dual language coordinators.
In light of the budget shortfall, union representatives are urging the board to prevent layoffs and seek alternative solutions to bridge the deficit.
“The threat of laying off any of these essential workers would be a significant blow to our education system,” warned Dian Palmer, president of SEIU Local 73, which represents thousands of CPS employees.
Palmer emphasized that Chicago’s children cannot afford to lose vital resources that union members have fought hard to secure since the pandemic.
She urged district leaders to avoid repeating the past mistakes of previous administrations and engage meaningfully with local and state elected officials to explore alternative funding avenues.
“We call on the city of Chicago and the Board of Education to urgently explore other alternatives that will not harm these students’ education,” Palmer declared.
Combining additional state funding with TIF revenues could feasibly close the financial gap.
In anticipation of the board meeting, Palmer and numerous SEIU members rallied outside of CPS’s central office, demanding the district refrain from significant layoffs and provide more transparency about employee status.
“If it weren’t for us workers, CPS wouldn’t be able to take care of these kids,” stated Doris Alexander, a crossing guard and SEIU member.
“CPS owes us and the parents more than one week’s notice before school restarts to tell us if we are laid off.”
Stacy Davis Gates, president of the Chicago Teachers Union, echoed similar sentiments as she urged the board to prioritize the needs of students.
“The choice to make is: Are we going to codify what our students need in a budget that represents forward momentum for our school district, or will we side with those who want to dismantle the public good?” she asked.
Gates insisted that schools should not open without adequate staffing, especially in special education, and she emphasized the importance of avoiding vacancies across the district.
Furthermore, Gabriel Paez, a bilingual teacher and chair of the CTU’s bilingual education committee, highlighted ongoing cuts impacting dual language coordinator positions and funding for essential programs.
He expressed apprehension regarding further reductions due to the dire financial conditions.
“This wouldn’t be a financial challenge if the state invested $1.2 billion that we are owed according to their own funding formula,” Paez stated.
He criticized the state for prioritizing funding for businesses over education, claiming, “We live in a state that has always had the money for business in downtown—if the state has funds for quantum computing, they have the funds for our students.”
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