Overview

• The Chicago Board of Education approved the 2025–26 CPS budget by a 12–7 vote with one abstention, meeting the state deadline and averting a shutdown.
• The budget does not commit CPS to reimburse the city for the $175 million MEABF payment, with payment contingent on additional city or state support.
• CPS is banking on $379 million in TIF surplus that has not been secured, and city budget officials now expect a smaller surplus as they reduce borrowing for infrastructure.
• Reports diverged on borrowing authority, with the Tribune saying a $200 million high‑interest loan was authorized and the Sun-Times saying the loan was excluded.
• City officials on Friday forecast a $1.15 billion deficit for 2026 and a $146 million shortfall for the rest of 2025, citing revenue softness and pension uncertainty tied to the CPS decision.