Tuesday, August 19, 2025

Saving Grace: new proposed Chicago Schools budget


It was back to school on Monday for Chicago Public School students and controversy has been brewing for the last several weeks in the nation’s fourth largest school system over how to handle a deficit of $734 million and facing new funding challenges on both the federal and local revenue streams; and interim CEO Macqueline King has seemingly done the impossible: crafting a proposed budget that has no classroom cuts, and done so with a combination of debt refinancing, taking custodial services from contractors to in-house governance, central office cuts, a hiring freeze new revenue including a city based fund surplus from a neighborhood tax incentive program.

In another city, and at another time, King would have been praised but in Chicago with its long history of racial segregation, its love of bare knuckle politics, is not enough for the critics, who are conservatives for the most, who part have picked and pulled at the proposals, (due for approval by the school board at the end of the month), and they have hammered away at King’s good intentions.


Part of that hellish road is the lack of political will by many in the local leadership community, and state legislatures to tackle the complexities of a large urban school system that is dominated by low income Black and Brown students whose communities have faced historic disinvestment as well as the challenges of harnessing talents to creatively tackle the problems that lie well outside the classroom walls.


In 2018 Chicago schools created a new evidence-based funding formula to define adequate levels of funding to reach established levels and the money to reach those goals using “a minimum ratio of students to core teachers counselors and other central staff, “ according to Chalkbeat Chicago.


Using that formula, CPS needs an additional $1.6 million more to fill a gap of $400 million, much more than what was received last year, and to note not only is Chicago eligible for that amount but also 300 hundred other statewide underfunded districts. 


The good news is that CPS is getting an additional $76 million more as it reaches Tier 1 funding, but, as stated, it is far from adequate, despite it being more than previously thought due to lowered tax revenue and a large increase in English learners.


Reaction has been cautious: “That increase will help schools and students but unfortunately does not keep pace with inflation, the rising costs of operating our schools, addressing capital needs, and proudly serving a greater percentage of students who require more services and programming,” said Mary Fergus, spokesperson for Chicago Public Schools also to Chalkbeat Chicago.


In addition using the same metrics all schools are to be funded at 90 percent adequacy by 2027 but according to WBEZ reporting, the Center on Tax and Budget accountability, “it will take until at least 2034 to reach that level.”


Things came to a head in the last mayoral election with a run from a former social services teacher and organizer from the powerful Chicago Teachers Union, who won the mayoral race, Brandon Johnson, who ran on a progressive ticket and ushered in a new era of Chicago politics coupled with a strong interest in regenerating the public schools.

 

Johnson’s background, however, and his desire to improve the schools along a new path has been met with derision from some, and his earlier efforts to secure a high interest loan from former CEO Pedro Martinez led to a bruising battle of words, and threats, and as city leaders wrung their hands, or gleefully warmed to the ensuing battle, many felt that this was just not just about Johnson, but also for his political agenda.

 

A 26 percent approval rating for the mayor, has further made his handling of the schools, along with the city budget and safety issues a referendum against him, as well as enmity towards the CTU. And in a recent meeting with Illinois state lawmakers Democrat State Rep. Curtis Tarfer said of Johnson, “Part of the reason we are where we are is because of the ineffectiveness and sometimes ineptitude of the fifth floor,” referring to the mayor’s City Hall office.


Among the critics is formal mayoral rival Paul Vallas in the 2023 mayoral election, and a former CEO of Chicago Public Schools, who in an editorial in the Chicago Tribune said that while King’s plan was good it did not say enough about the financial future of the schools. “It disappointingly avoids structural fixes - guaranteeing Chicago will face a similar budget crisis next year, The plan clearly elevates CTU priorities above student needs.”


Or, does it? Many in the media and across the city expected her to fully embrace, and be a rubber stamp of Johnson, but she hasn’t; and, in one key area she has also sidestepped a high interest loan to help CPS in her proposal, a factor that most believe brought down Martinez.


One sticking point is the $379 million payout payment plan that the district needs to pay to help cover the $175 million pension; and, the District wants the city to pay, fearing that if they don’t get the Tax Increment Financing money, there is an increased risk of a financial cliff, and as WBEZ reported:


“We are telling the city up front that we’re not going to pay this year, but we expect you to give us the money,” board member Emma Lozano said during Wednesday’s board meeting. “I think that we’re dreaming here. That’s not the way things work. And I’m hoping that there is another budget report that’s going to add the payment because I don’t see how this is going to work.”


Going back to the previous incarnation some members of the board are “demanding the school district’s budget include a controversial $175 million municipal pension payment,” in reality a reimbursement to the city.


It’s important to keep in mind that current debt servicing fees are at a hefty $1.06 billion per year and the TIF money cannot be guaranteed with city budget challenges.


This is tough sledding and the resulting donnybrook resulted in a letter from those board members to King further complicated matters in what, for the most part, was a well engineered plan to avoid dreaded classroom cuts.


Included in the demand is that any loan options “should be included as an option to be utilized only in the event it is necessary to avoid further cuts to the classroom.”


“The budget proposal reflects a total of $272 million in cuts, including to the district’s central office staff as well as custodial services, crossing guards, cafeteria staff, and more. Before Wednesday’s board meeting, SEIU Local 1, the union that represents some district custodians, held a protest against job cuts affecting its members. Custodians held mops and chanted “Keep schools clean” in front of district headquarters and decried the cuts, which they said blindsided their union and will result in dirtier school buildings.”  


On the other hand, the balancing act that brought this proposal has some key elements to help students increased money for special education students of $62 million and #7 million for bilingual services, and increased staff for principal, assistant principals, clerks and counselors, among other staffers; and, especially notable is a program to bring students back to school who have been absent for 12 to 18 months and the supportive services they may need. And, in all things considered the result is an $8.43 billion dollar operating budget.


Taking things further afield, Chalkbeat also reported, “At the Wednesday meeting, the district’s chief budget officer Mike Sitkowski said the proposal was informed by input from residents who urged the district to protect classroom instruction, resist more high-cost borrowing for operating costs, and forego the city pension reimbursement. The district is taking on $2.4 billion in new long-term debt to pay for maintenance of its aging school buildings. The new budget proposal includes $556 million in capital expenses.”


That, in and of itself, is a boon to an aging physical plant, despite the debt, and some residents remember when former Gov. Bruce Rauner, a Republican, described many Chicago schools as “crumbling prisons.”


While Vallas and others deride King for not planning for future deficiencies some say dealing with the present reality is fairer to students to not only continue the fiscal reality, but to try and tackle weakened test scores, despite improvements,


The mixed reaction from board members and others suggests that the heavy lifting is not over and the weeks ahead are going to be burdensome,










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