Widespread lies about family income could affect funding, fees at some CPS schools, watchdog finds
A report from the Chicago Public Schools’ top watchdog found widespread lies and omissions on family income forms that identify low-income households, which could affect how much funding district schools receive and whether some school fees are waived.
Forms used to identify low-income households
The form, which families fill out every year, formerly was used to identify students who should receive free or reduced-price school lunches. Since 2015, all CPS students have received free lunches regardless of family income.
Abuse of the form continues
But abuse of the form has continued because its status still impacts schools and families, according to CPS Interim Inspector General Amber Nesbitt’s office.
CPS employees found to have misreported income
Among the investigation’s major findings, the IG’s office found that 619 of the 880 CPS employees who are parents marked as low-income – or 70% of those employees – actually made too much money to qualify. Of that group, 134 made more than $100,000 annually at CPS. That’s without taking into account spouses’ salaries.
Non-CPS employees also found to have misreported income
The inspector general’s office said many of those CPS employees might have omitted or understated their incomes on 2023-24 forms. But there could be reasons why some were valid.
Schools with high percentages of low-income students face funding implications
CPS employees weren’t the only ones found to have potentially lied about their income. But analyzing their cases was easier for the IG since salary information is readily available.
Findings and recommendations
The report found that more than 250,000 CPS students are eligible for free or reduced-price meals, with roughly 54,200 of those students due to the family financial information form. The OIG has talked to non-CPS employee parents who admitted understating their income on forms, but the OIG’s analysis was unable to assess the system-wide extent of possible fraud by such parents because their salaries are not easily accessible.
In response to the IG’s investigation, CPS said it will no longer use the free- or reduced-lunch form in its school funding formula. The district also plans to examine school fees and whether any changes need to be made, such as proof of income for fee waivers.
Case study: Inaccurate forms result in increased funding for one school
In one particular case, investigators found that two clerks incorrectly labeled at least 88 students as free-and-reduced-lunch eligible in the 2018-19 and 2019-20 school years, resulting in increased funding of between $81,054 and $135,090 for their school over the two years. One family of four marked as low-income had an annual household income of $330,000. The federal threshold for reduced-price meals is about $30,000.
Recommendations and disciplinary action
The inspector general recommends firing one of the clerks and disciplining and training the other. Both resigned.
Fees and their impact on families
There are individual benefits to families misrepresenting their income: those with a low-income designation can be exempt from school fees, which sometimes add up to hundreds of dollars every year. Depending on the school, there might be fees for: school activities, technology, band instrument rentals, sports participation, graduation, college admissions testing, and college applications.
Administrators and families seeking fee waivers
Administrators at one CPS selective-enrollment high school told investigators that dozens of parents every fall ask to revise their forms to try to qualify for low-income status to avoid college application fees, which range from $25 to $125.
Recommendations for change
The IG’s office suggests that CPS require proof of income for fee waivers and that the district’s ethics policy be updated to prevent similar violations.
FAQs
Q: What is the impact of inaccurate forms on school funding?
A: Inaccurate forms can result in increased funding for some schools, as seen in the case study.
Q: What is the purpose of the family financial information form?
A: The form is used to identify low-income households and determine eligibility for free or reduced-price school meals.
Q: How many CPS employees were found to have misreported their income?
A: 619 of the 880 CPS employees who are parents marked as low-income, or 70%, actually made too much money to qualify.
