Chicago Public Schools interim CEO Macquline King has presented the most responsible budget possible under current conditions, especially considering the strong influence of the Chicago Teachers Union and a mayor committed to prioritizing union interests over all other considerations.
King’s plan solidly protects local school funding without worsening the district’s immediate financial health. However, it disappointingly avoids structural fixes — guaranteeing Chicago will face a similar budget crisis next year. The plan clearly elevates CTU priorities above student needs.
CPS’ budget presentation balances the 2026 budget with the following measures:
- Cuts away from the classroom: $126 million in central office department budget reductions, a hiring freeze, streamlined administrative roles and delayed IT projects. These savings follow $146 million in previous cuts.
- New revenues: $149 million in additional money, including $45 million from improved evidence-based funding, $25 million in projected grant carryover, and a $79 million jump in anticipated tax increment financing funds.
- Debt maneuvers: $29 million in savings from accelerating debt refunding.
- One-time funding sources: $65 million from the debt stabilization fund and $25 million in philanthropic donations.
- Pension payment deferral: CPS pushes a $175 million municipal pension fund payment onto the city.
The district will continue to receive 56% of all property revenues paid by city residents and business while the city will provide the district with almost $1.1 billion in additional subsidies. This includes at least $557 million in the dedicated teacher pension city property tax levy, $379 million in TIF property tax windfall and almost $100 million in debt service on school district capital bonds.
The district’s budget materials understate a significant increase in property tax revenues. While the district claims deficit progress, its own projections show future budget holes growing — even assuming the property levy is raised to its legal cap limit each year. To her credit, the CEO has proposed hundreds of millions of cuts, but the larger question remains: How will CPS resolve future budget shortfalls?
The oft-repeated claim — CPS needs $1 billion more in state funding for adequacy — is simply not supported by facts. CPS spends $30,000 per student, more than the state average, but delivers poorer results.
Despite cuts, staff levels in the new budget are 16% higher than in 2019, while student enrollment has dropped 8.5%. The proposed staffing ratio is now one position per seven students — a troubling inefficiency. Meanwhile, the district spends $100 million yearly on 20 near empty schools and wants to spend $1 billion on capital improvements. Despite the 20 schools averaging one employee per four students, just one in 10 kids read at grade level, and in several, it’s zero. At the same time the campaign to close public charter schools or convert to CTU member district schools will drive up costs of those schools.
On the academic side the proposed $10.2 billion budget will further reduce standards and accountability that will deny poor families alternatives.
Meanwhile, CPS continues to shift away from student-based budgeting in favor of the CTU-backed “Sustainable Community School Model,” which prioritizes not enrollment but perceived needs regardless of outcomes. The district is set to increase its current 20 “community schools” to 70 under this model despite the existing such schools lagging the district average by most measures including academic proficiency and attendance.
King is doing her best under enormous pressure, but record-sized union contracts and inefficient CTU-driven policies continue to drive up costs and degrade both the quantity and quality of educational choices. The budget sustains CTU priorities at the expense of needed reforms, deeper efficiencies and, ultimately, the interests of Chicago’s students.
