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2mo ago

Chicago Public Schools Budget Amendment Faces Pension and Contract Funding Challenges

CPS proposes a $139 million budget increase but unresolved funding gaps could lead to borrowing, cuts, or labor unrest.

People walk past the Chicago Public Schools headquarters entrance on Jan. 30, 2025. (Audrey Richardson/Chicago Tribune)
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Overview

  • Chicago Public Schools (CPS) has proposed a $139 million budget amendment primarily funded by Tax Increment Financing (TIF) surplus to address pension payments and union contracts.
  • The amendment leaves $242 million in funding gaps for teacher and principal salary increases and a $175 million pension payment, raising concerns about potential borrowing or budget cuts.
  • The Chicago Teachers Union (CTU) has presented its final contract offer, warning of a possible strike starting March 17 if no agreement is reached, though no strike authorization vote has been called yet.
  • Mayor Brandon Johnson supports the amendment but faces criticism over potential high-interest borrowing to cover CPS’s financial obligations, with some school board members opposing debt solutions.
  • Public hearings on the amendment are scheduled for March 13 and 14, with a school board vote expected on March 20, as tensions rise over CPS’s financial management and labor negotiations.