Introduction to Chicago Public Schools’ Financial Crisis
CHICAGO — Chicago Public Schools’ layoff of 161 employees last week is a likely precursor to more budget cuts the district will consider to address a $734 million deficit.
Details of the Layoffs
The layoffs included 87 people represented by SEIU Local 73 — nearly all of whom were crossing guards — plus 67 employees in the district’s central and network offices, and seven people represented by the Chicago Teachers Union, CPS confirmed to Chalkbeat. The district also said it will not fill more than 200 vacant positions: 166 at the central office, 19 CTU-represented positions, and 24 crossing guard jobs.
Impact of the Layoffs
CPS officials did not immediately say how much money the district will save with last week’s layoffs. And they didn’t explain how they would manage with fewer crossing guards. The layoffs were of people who work citywide or in central offices and are not assigned to schools, CPS spokesperson Sylvia Barragan said in a statement. Under the leadership of previous district CEO Pedro Martinez, officials were “identifying ways to be more efficient and find cost savings across our central offices and administrative functions” and also cut other expenses, including some contractual services “to further limit the impact on school communities,” Barragan wrote.
Future Cuts and Deficit
Barragan said school-based “staffing adjustments” will come in July. While schools lay off some people every year, those employees often find jobs in other schools. This year’s cuts could go deeper than in past years, given the size of the deficit. The district was already preparing to make cuts to close a budget gap previously projected at $229 million. That projection assumed the district would receive hundreds of millions of dollars in additional revenue, which has not materialized. Without those additional dollars, the district expected to see a $529 million deficit.
Current Financial Situation
Now, the district’s official deficit for the fiscal year beginning Tuesday has grown to $734 million because of additional expenses that interim CEO Macquline King is factoring in, including a $175 million pension reimbursement to the city. That deficit represents the most dire financial situation for CPS since at least before the pandemic, and it remains unclear how CPS will close it. The district is expected to present a budget proposal to the Chicago Board of Education later than usual, most likely in late July or early August. To narrow the deficit without major budget cuts, the district may also consider borrowing, an idea that is already dividing the school board.
Potential Solutions and Reactions
In a presentation to school board members in April, CPS officials indicated that in a scenario with a $734 million deficit, funding that goes directly to schools could take a 10% hit — or $300 million to $400 million. It’s unclear if that’s still the sort of scenario officials are considering. The uncertainty is sowing anxiety in school communities, which could face additional cuts and layoffs before the start of the school year. In a statement, SEIU Local 73 president Dian Palmer said last week’s layoffs are likely just the beginning. Laying off “any of these essential workers” would represent a “significant blow to our education system,” Palmer said.
Union Responses and Plans
In a statement, the CTU said it is planning to drum up support for more state funding this summer by knocking on doors and visiting state lawmakers. “Parents shouldn’t have to be worried about if their child’s class will have a chemistry teacher or if there will be staff to meet the needs of their IEP, and educators shouldn’t have to spend their summer attending job fairs instead of planning lessons for the coming school year,” the union said. The CTU and SEIU held back-to-back rallies last week calling for the district to avert layoffs of their members. The unions have called for additional revenue that, for now, seems unlikely to pan out. That strategy includes seeking more money from the state and calling on Mayor Brandon Johnson to provide more money to CPS from a pool of tax dollars for development projects. CTU President Stacy Davis Gates has also supported the idea of borrowing to stave off cuts.
Conclusion
The recent layoffs by Chicago Public Schools are a sign of deeper financial troubles facing the district. With a significant deficit to address, the district is considering various options, including further layoffs and borrowing. The situation remains uncertain, causing anxiety among school communities and prompting unions to seek additional revenue sources. The coming weeks will be crucial as the district navigates its financial challenges and works towards presenting a balanced budget.
FAQs
- Q: How many employees were laid off by Chicago Public Schools?
A: 161 employees were laid off, including crossing guards, central office employees, and Chicago Teachers Union members. - Q: What is the current deficit facing Chicago Public Schools?
A: The district is facing a $734 million deficit. - Q: What measures is the district considering to address the deficit?
A: The district is considering further layoffs, not filling vacant positions, cutting expenses, and potentially borrowing money. - Q: How are unions responding to the layoffs and budget cuts?
A: Unions like SEIU Local 73 and the Chicago Teachers Union are calling for additional revenue, seeking support from the state, and considering rallies to avert further layoffs of their members.
