
CPS Officials Announce Plans to Close $732M Budget Gap
Clip: 7/16/2026 | 3m 20sVideo has Closed Captions
District officials this week outlined their $9.88 billion budget proposal for the 2027 fiscal year.
Chicago Public Schools is banking on $200 million in tax funding from the city and planning for a mid-year spending freeze and a week of furlough days to help close its $732 million budget shortfall.
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CPS Officials Announce Plans to Close $732M Budget Gap
Clip: 7/16/2026 | 3m 20sVideo has Closed Captions
Chicago Public Schools is banking on $200 million in tax funding from the city and planning for a mid-year spending freeze and a week of furlough days to help close its $732 million budget shortfall.
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Learn Moreabout PBS online sponsorship>> School's out for summer.
But when students and staff return, they may find it different from when they left yesterday, Chicago Public schools announced layoffs, furlough days and a mid-year spending freeze as part of an almost 10 billion dollar budget proposal.
The plan comes the CPS tries to close at 732 million dollar budget gap just a declining student enrollment.
Our Matt Masterson joins us now with more.
at the budget includes several cuts that are going to affect teachers and other staff.
What CT use reaction to this?
Well, Nick was not great.
Union president Stacy Davis, Gates called his proposal dead on arrival.
The Union decried the hundreds of staff layoffs in the 5 furlough days that are included as part of this proposed spending plan.
>> They say this will have a devastating effect on schools communities across the city.
They've repeatedly called on state officials to come through with funding that they say CPS has told under the state's own evidence based funding formula, they'll continue to make those calls and put pressure on Springfield to try to get that fund to make sure that some of these cuts and again in this proposal can be avoided.
Yeah, they've been ringing that bell for quite a while.
What is Mayor Johnson have to say about the budget?
Mayor Johnson, of course, is a former union organizer and like to see to you, he called this proposal disappointing.
He said balancing the budget on the backs of working class people and the students in the classrooms is not only unhealthy for the school district.
It's also unsustainable.
Moving forward like the union like CPS officials.
He is also calling on Springfield to come through with this extra funding so that changes can be made.
>> Cps is counting on some 200 million dollars in tax increment financing.
Money coming from the city.
>> How reliable is that plan?
Well, that's about.
Twice as much as the district initially was going to assume from the city.
They were initially going to call for 100 million dollars.
So they're doubling that out.
But this still marks a significant decline from what they actually got from the city last year.
Still, this is a risk of the city's not going to announce its TIF surplus until later this fall.
And there could be pushed back from the city council that's going to want to spend the money these dollars in other areas apart from Chicago public school.
So they're banking on this, but it's not 100% going to be there for them.
And if CPS can get that TIF money, do expect laid-off employees could be rehired.
Cps says that they typically re-hire about 75% of those who are laid off anyway.
They said yesterday district officials said that if they do get extra money, the first thing that's going to be back on the table is these furlough days.
They want to cut those out and try to make sure that people are in school on all the days that they're supposed to be.
And before we let you go, we should mention that the district isn't just making cuts.
They're also increasing funding for schools, including special education teachers.
Tell us about that.
So despite all the cuts, despite the layoffs, CPS says that school allocated funding is actually up 143 million dollars in this budget compared to last year.
Much of this is due to special education costs.
The number of special education students in CPS has risen steadily over the years.
And there are the sickest, adding around 950 new special education teachers in classrooms staff as part of this budget.
Again, this is a proposal that school board still has to vote on this, which they're set to do later this month.
All right.
A lot of moving parts.
Matt Masterson, thanks very much.
A stick.
And you can read Matt's full story on our website.
That's all it.
W t Tw dot com slash news.
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