As the summer ends and Chicago Public Schools (CPS) prepares for the new school year in August, district officials are confronted with a daunting budget shortfall of $734 million that must be addressed to meet legal requirements for a balanced budget.
The urgency of the situation has intensified as CPS navigates through a landscape filled with multiple challenges leading to an acute cash crunch.
CPS leaders have already identified about $165 million in potential savings through layoffs of some central office staff and crossing guards this summer, along with implementing various operational efficiencies. However, they are still searching for another $569 million in savings or revenue to fill the remaining gap, not to mention the looming uncertainty of potential cuts in federal funding that may arise under President Donald Trump’s administration.
Looking ahead, the school district faces an even larger projection of nearly $1 billion in deficit next year, compounded by consistent budget gaps for several years to come, according to Chief Budget Officer Mike Sitkowski.
In a recent presentation, Sitkowski emphasized the need for structural modifications to curtail costs or discover new revenue sources that can benefit CPS both now and in the long run, cautioning that one-time financial actions will not sufficiently address the escalating figures.
The roots of CPS’s budget crisis can be traced back to decades of history involving inequitable state funding, primarily relying on local property taxes that have allowed wealthier communities to enhance their educational funding. This ongoing disparity, termed as “manufactured inequality” by former school board member and University of Illinois Chicago associate history professor Elizabeth Todd-Breland, reflects decisions made over generations and their cumulative impact on the education system.
Staffing remains the most substantial expenditure for the district, a challenge accentuated by the increased number of students requiring additional support due to economic hardships, special needs, or language barriers.
Historically, CPS maintained an insufficient number of staff in relation to the student population it served. For instance, in the 2017-2018 school year, the ratio was alarmingly one social worker for every 1,400 students, far from the National Association of Social Workers’ recommendation of one for every 250 students.
However, there was a turning point in 2019 when CPS began enhancing staffing levels. This shift came after Illinois lawmakers introduced a reformed method of distributing funds to schools that promised incremental state funding growth. Additionally, a teachers’ strike led CPS officials to commit to increased hiring, resulting in better staffing, including the provision of a nurse and social worker for each school.
The injection of $2.8 billion in federal COVID relief funds also played a critical role, with CPS utilizing more than 50% of its pandemic funding for salaries compared to an average of only 33% in other districts.
By September 2022, CPS reported having 7,000 more employees than in September 2019, which included additional custodians, building engineers, teachers, and assistants. Importantly, there were 200 new social workers hired, adjusting the ratio to one for every 500 students, alongside 1,100 more regular teachers dedicated to assisting struggling learners.
Moreover, CPS added 1,100 special education teachers and approximately 3,000 special education classroom assistants to accommodate the rising number of students requiring these services, which escalated from 14.6% in 2019 to 16.4% by 2025. This increased spending on special education has led CPS to allocate $450 million more over the past six years, yet state and federal support has remained largely stagnant.
Transportation also contributes to the financial burden, as CPS is obligated to transport students with disabilities using yellow school buses, alongside limited services for elementary students enrolled in magnet or selective-enrollment schools. A nationwide driver shortage resulting from the pandemic has exacerbated the situation, causing many students to lose necessary services.
Consequently, CPS’s spending on student transportation reached $160 million in 2024, a significant increase from $120 million previously, driven in part by rising wages intended to attract new drivers.
Building maintenance constitutes an additional financial strain for CPS, where the average school facility is 85 years old. A facility assessment conducted in 2023 revealed a staggering $14 billion in identified repairs, with $3 billion classified as critical and urgently needed. Because CPS lacks the autonomy to generate funds for these repairs, it resorts to borrowing, which does not sufficiently cover the substantial needs of its aging facilities.
This neglect means that vital components such as boilers and roofs frequently go unrepaired, necessitating additional staff merely to ensure basic operations, causing CPS’s annual maintenance expenses to increase by $100 million since 2019, according to Sitkowski.
CPS also faces substantial financial obligations due to pension costs and debt payments, which drain millions from the budget before any funds can be allocated for students or educational resources.
Historical inequities stemming from inadequate state funding have generated burdens the district continues to grapple with, particularly as CPS engages in short-term loans for cash flow and long-term loans for capital repair projects and other fiscal emergencies.
In the previous year, CPS incurred $817 million in debt service payments for long-term loans, in addition to $9 million in interest for short-term loans, an expenditure that could equivalent to addressing the current deficit.
Pension liabilities further complicate the financial landscape, with CPS expected to contribute over $600 million to teachers’ pensions next year, a cost that has escalated by $100 million annually since 2023. Unlike any other school district in Illinois, CPS must allocate funds to its own teachers’ pension system while the state covers the majority of contributions for the broader teacher pension system.
Additionally, non-teaching staff in CPS are part of the city’s municipal pension fund. Former Mayor Lori Lightfoot initiated a request for CPS to start contributing to that fund, a directive that has been continued by Mayor Brandon Johnson. The city is now looking for $175 million from CPS, which is factored into the overall deficit calculation.
In this tumultuous financial context, CPS is left scrambling to devise solutions to ensure students return to school under the weight of unresolved budget issues.
As the beginning of the school year approaches, stakeholders are keenly aware of the implications that these budgetary constraints may have on the quality of education and support services available to Chicago’s students.
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