Chicago school board passes $10 billion budget without loan

Chicago school board passes $10 billion budget without loan

The Chicago School Board has approved a $10 billion budget for the Chicago Public Schools (CPS) district, marking a significant step in the ongoing budget battle between the board and Mayor Brandon Johnson. The budget, which was passed with 12 out of 20 board members voting in favor, does not include a loan, which the mayor's office had sought to cover a controversial municipal pension payment and other unexpected shortfalls [1].

The approved budget closes a $734 million deficit but does not guarantee the school district will make the $175 million pension payment. Instead, the budget commits CPS to making the payment if it receives extra funds from the city or state. The board and many community members have pledged to go to Springfield to demand additional funding [1].

The budget relies heavily on a record $379 million surplus from the city's special tax increment financing (TIF) districts. This surplus, which is set aside for economic development or infrastructure projects, accounts for a significant portion of the budget. The mayor's office had suggested that this money might not come through if the board did not commit to making the pension payment [1].

Despite the mayor's appointees and some elected allies opposing the budget, three of Johnson's appointees and two elected allies ultimately voted in favor of the budget. This unexpected support tipped the balance and led to the budget's approval [1].

The budget's passage is a victory for CPS officials and many community members, who argue that the district should not have to make massive harmful cuts to classrooms. However, political opponents of Johnson have criticized the budget, warning that budget cuts could negatively impact students. The Chicago Teachers Union has called on Gov. JB Pritzker and Illinois lawmakers to send more funds to CPS [1].

The budget's approval comes after a yearlong battle between CPS and the mayor's office. The conflict has seen Johnson's former appointed board resign en masse and led to the district's former CEO, Pedro Martinez, being fired last year [1].

The budget's passage does not mean that borrowing is off the table entirely. The CPS chief financial officer has sent a memo to the board stating that they can approve a loan in an emergency with only a simple majority vote [1].

References:
[1] https://chicago.suntimes.com/chicago-school-board/2025/08/28/cps-board-denies-johnsons-preferred-budget-rejects-pension-payment-and-loan