Introduction to Chicago Public Schools’ Budget Crisis
As parents get ready to send their children back to school in August, Chicago Public Schools officials are trying to figure out how to fill a massive deficit and go into the school year with a balanced budget, as legally required. It is a fraught moment as CPS grapples with multiple challenges bearing down on the district, creating a cash crunch and a budget shortfall of $734 million.
The Extent of the Budget Deficit
District officials say they already expect to save about $165 million after laying off some central office staff and crossing guards this summer and finding other “operational efficiencies.” But beyond that “low-hanging fruit,” as Chief Budget Officer Mike Sitkowski called it, leaders are still searching for $569 million in either savings or revenue. That’s before any cuts in federal funding that could come from President Donald Trump’s administration. CPS will face an even bigger deficit of almost $1 billion next year and more budget gaps for years to come, Sitkowski said in a recent presentation.
Historical Context of the Budget Crisis
Former school board member and UIC associate history professor Elizabeth Todd-Breland said state funding in Illinois has historically been lower than in other states. Here, schools have been mostly supported by local property taxes, which allowed richer communities to better fund their schools. “This is manufactured inequality,” she said at a recent community meeting. “We are at the endpoint of generations of decisions.” The district’s current budget crisis is, in part, the result of that history, and also some more recent factors.
Staff
Staffing schools is the most expensive budget item. And those costs have only gone up. For decades, CPS had way too few staff for the number of students it served. That’s especially true when factoring in the high number of children who come from low-income families, have special needs or are learning English — kids who need extra support. Take social workers: The National Association of Social Workers recommends one for every 250 students. But in the 2017-2018 school year, there was one social worker for every 1,400 CPS students. That changed in 2019, when CPS started beefing up staffing.
Buildings and Transportation
Transporting students to a school that can meet their needs has also proven costly — and difficult. CPS mostly sends yellow school buses for students with disabilities, as legally required, though it is also providing limited bus service to elementary school students who go to magnet or selective enrollment schools. A nationwide driver shortage after the pandemic led thousands of kids to lose services. And yet, CPS spent $160 million on student transportation in 2024, up from $120 million. Higher wages meant to entice new drivers have played a part. Another weight on CPS’ budget is building maintenance and repair. CPS buildings are, on average, 85 years old. A facility assessment completed in 2023 found $14 billion in needed repairs — $3 billion of which are considered critical.
Pensions and Debt Payment
Millions of dollars get siphoned away from the school district’s budget before it can be spent on current students and education. Why? Debt and pensions. Many of these costs are the legacy of decades of inadequate state funding and inequitable policies — and mayors refusing to address those head on. CPS has long taken short-term loans to manage cash flow and long-term loans to repair and build schools, as well as to weather other financial crises. Last year, CPS paid $817 million in debt service payments for long-term loans and another $9 million of interest on short-term loans. That money could cover the deficit. Another weight is pension costs. CPS needs to contribute more than $600 million for teachers’ pensions next year, an amount that has grown by $100 million a year since 2023, Sitkowski said.
Conclusion
The budget crisis facing Chicago Public Schools is complex and multifaceted, with historical, recent, and ongoing factors contributing to the deficit. The district must navigate these challenges to provide quality education to its students while managing its finances effectively. Addressing the root causes of the budget crisis, including inadequate state funding and inequitable policies, is crucial for long-term sustainability.
FAQs
Q: What is the current budget deficit of Chicago Public Schools?
A: The current budget deficit of Chicago Public Schools is $734 million.
Q: What are the main factors contributing to the budget deficit?
A: The main factors contributing to the budget deficit include staffing costs, building maintenance and repair, debt service payments, and pension costs.
Q: How does the state funding in Illinois compare to other states?
A: State funding in Illinois has historically been lower than in other states, with schools mostly supported by local property taxes.
Q: What is the impact of the budget crisis on students and education?
A: The budget crisis may lead to cuts in educational programs and services, affecting the quality of education provided to students.
Q: What are the potential solutions to address the budget crisis?
A: Potential solutions include increasing state funding, reducing costs, and finding new revenue sources, as well as addressing the root causes of the budget crisis, such as inadequate state funding and inequitable policies.
