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2mo ago

Chicago Public Schools Board Faces Tight Vote on $175M Pension Payment

The board must decide whether to amend the budget to include the payment, as Mayor Johnson pushes for financial independence and CPS warns of legal risks.

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CPS President Pedro Martinez and members of the Board of Education and listen to speakers during a Chicago Public Schools board meeting at the CPS headquarters on Feb. 27, 2025. (Antonio Perez/Chicago Tribune)

Overview

  • Mayor Brandon Johnson continues to urge CPS to reimburse the city for a $175 million pension payment for non-teaching school employees, emphasizing the need for financial independence ahead of a fully elected board in 2027.
  • CPS CEO Pedro Martinez opposes the reimbursement, citing financial constraints, potential legal violations, and fiscal irresponsibility in borrowing to cover operating costs.
  • The CPS board received a memo from Baker Tilly Advisory Group outlining options to address the shortfall, including refinancing debt, but with no clear recommendations provided.
  • Twenty-seven City Council members have demanded CPS make the payment, while the board prepares for a critical vote requiring two-thirds approval, with the outcome uncertain.
  • If the budget amendment is approved, CPS risks accusations of passing an unbalanced budget, which could lead to legal consequences for board members and officials.