Introduction to the Budget Rejection
The Chicago Board of Education delivered a significant blow to Mayor Brandon Johnson on Thursday by approving a budget that does not guarantee the school district will make a controversial municipal pension payment — a move that could leave a $175 million hole in the city’s bank account.
Details of the Budget
The budget, approved by 12 of 20 board members, closes a $734 million deficit but does not include a loan, which the mayor’s office sought in order to cover the pension payment and other unexpected shortfalls. Most of the mayor’s appointees and elected allies spoke against the budget but did not make moves to change it — and crucially, some unexpectedly voted in favor of the budget and tipped the balance.
Implications for the Mayor
The news is not all bad for Johnson: The budget does commit Chicago Public Schools to making the pension payment should it get extra money from the city or state. The whole school board and many community members committed to going to Springfield and demanding money. That was Interim CPS CEO/Supt. Macquline King’s concession to the mayor. After having not said much publicly about her budget, King defended her spending plan Thursday at the top of the monthly board meeting.
Budget Justification
“At the heart of this decision is a shared commitment to our students,” she said. “It’s about coming together to do what’s right for their future. Passing a budget means protecting our schools from further cuts, and unlocking the opportunity to focus fully on enhancing the quality of education throughout our city.” The budget counts on a record $379 million in surplus funds from the city’s special tax increment financing, or TIF, districts.
TIF Districts and Their Role
Senior mayoral aide Jason Lee suggested Wednesday that this money might not come through if the board didn’t commit to making the pension payment. He said CPS has never counted on so much TIF surplus funding in its budget. TIF districts are zones across the city where some property taxes are set aside for economic development or infrastructure projects. The mayor, with City Council approval, can use unspent or unobligated money as a one-time fix for operating budget gaps. CPS gets 52% of TIF surpluses; the city gets about 23% and other taxing bodies get the rest.
Board Members’ Perspectives
Board members who supported the budget said they were confident the money will come through. In fact, the city could approve an unprecedented TIF surplus that would give CPS even more than $379 million and cover the pension payment. Board member Norma Rios-Sierra, appointed in District 3A, said she wants City Council members who came to the board meeting and urged against a loan to follow through and approve the TIF surplus.
Community and Union Reactions
Johnson’s allies at the Chicago Teachers Union said the board’s approval of “this imbalanced budget will cost Chicago’s public school students,” warning that budget cuts would “be felt in our homes.” The union called on Gov. JB Pritzker and Illinois lawmakers to send more funds to CPS and vowed to head to Springfield for the fall veto session.
A Yearlong CPS Budget Battle
This extended budget battle has seen Johnson’s former appointed board resign en masse and led to the district’s former CEO Pedro Martinez being fired last year. The same conflict between the school district administration and Johnson arose this summer, even after the school board hired CPS CEO/Supt. Macquline King out of the mayor’s office. The vote divided the board into two camps, aligned with or opposing the mayor’s wishes.
Closing the CPS Deficit
The debate over the municipal pension payment and loan consumed the budget process. But CPS faced a deficit outside of these factors in large part because CPS had used $2.8 billion federal COVID relief funding to hire thousands of teachers and other staff — and that money ran out. This hiring was used to lower class sizes, help struggling students and support students with disabilities. CPS leaders said these staff members led to students bouncing back academically from the pandemic, and the district shouldn’t let them go.
Conclusion
The approval of the budget without the pension payment or loan marks a significant turning point in the ongoing budget battle between the Chicago Board of Education and Mayor Brandon Johnson. While the decision may lead to a $175 million hole in the city’s bank account, it also reflects the board’s commitment to avoiding high-interest borrowing and seeking alternative solutions, such as the allocation of TIF surplus funds. The future of Chicago Public Schools remains uncertain, with potential cuts and the ongoing pursuit of additional funding from the city and state.
FAQs
- What was the outcome of the Chicago Board of Education’s vote on the budget?
- The board approved a budget that does not guarantee the school district will make a controversial municipal pension payment, potentially leaving a $175 million hole in the city’s bank account.
- Why did the board reject the mayor’s preferred budget?
- The board rejected the budget because it included a loan that would have been used to cover the pension payment and other unexpected shortfalls, which some board members considered too risky.
- What role do TIF districts play in the budget?
- TIF districts provide surplus funds that the city can use to cover operating budget gaps, with CPS receiving 52% of these surpluses.
- How will the budget cuts affect Chicago Public Schools?
- The budget cuts will result in the loss of jobs, including 500 custodians, 200 lunchroom workers, and 100 crossing guards, and may impact the quality of education provided to students.
- What are the next steps for the Chicago Board of Education and Mayor Brandon Johnson?
- The board and the mayor will continue to seek additional funding from the city and state to support Chicago Public Schools, with the possibility of revisiting the loan option in the future if necessary.
