Chicago Public Schools Grapple with $732M Deficit Amidst Declining Enrollment: What’s Next?

CHICAGO — On Tuesday, every principal within the Chicago Public Schools (CPS) system was informed of their respective budgets for the upcoming academic year.

The district is currently grappling with a significant budget shortfall, nearing $1 billion, forcing CPS to make some challenging decisions.

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Over the past seven years, student enrollment in CPS has declined by 45,000. Nevertheless, the district’s budget has increased substantially. During the pandemic, federal COVID-19 relief funds allowed the district to create more than 10,000 new positions.

“The relief funding is now depleted, making it difficult for the district to maintain the same staffing levels,” explained CPS CEO Dr. Macquline King.

In a budget meeting on Tuesday, King refrained from specifying how many positions might be eliminated or confirming that all schools will experience budget cuts. However, it is evident that CPS is contending with a $732 million deficit, with certain revenue sources potentially unavailable this year.

“There are no magic solutions this time; no substantial financial resources left,” stated Civic Federation President Joe Ferguson.

Ferguson doubts the city can provide as much TIFF money as it did last year. In addition, he says CPS can no longer afford to restructure debt. The Chicago Teachers Union says state lawmakers must do their part since CPS is only funded at 73% of what the state considers adequate.

“We also know Springfield is choosing to fund billionaires and big corporations with a mega projects bill. We think schools, vital services, need to be protected, first and foremost,” said CTU Vice President Jackson Potter.

But several state lawmakers say more money from Springfield this year is doubtful. CPS also faces aging buildings and a growing population of students with special needs. King says balancing a budget means everything is on the table.

“We will prioritize the resources closest to students and work to find savings in areas of the budget that are more removed from students, like Central Office,” King said.

Tuesday begins the budget process. Principals have until June 9 to finalize their individual school budgets. CPS will present its full 2027 budget over the summer. The school board must approve a balanced budget by Aug. 29.