The Chicago Public Schools (CPS) board has authorized a substantial $175 million pension payment to the city, following a decisive vote on Thursday.
During a specially convened meeting, board members reached a unanimous decision in favor of making the payment.
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This development follows the Chicago Board of Education’s approval of a balanced budget for CPS in August, which successfully addressed a significant $730 million deficit.
There had been ongoing debates regarding whether CPS or the city should be responsible for the $175 million pension obligation.
The pension fund encompasses both CPS and city employees. Although state law mandates the city to cover these costs, Chicago is grappling with its own financial challenges.
In light of this, Mayor Brandon Johnson recently defended his budget proposal, which includes reallocating $1 billion from Tax Increment Financing (TIF) funds, with a significant portion earmarked for Chicago Public Schools. He discussed his strategy in an interview with ABC7.
“A TIF surplus goes to our City Colleges; it goes to our parks, goes to our libraries,” Johnson said. “Because that’s the way the law is designed, and so investing in CPS, that’s a good thing, right? And so what I’m simply saying is that I know that there are people who are thirsty to make it about the Chicago Teachers Union. They’re short-sighted; they are short-sighted because the larger, bigger picture ensures that not just our public schools are fully supported at a time in which President Trump is attacking public education.”
This is a developing story.
