Chicago Public Schools (CPS) entered this budget cycle facing a $732.5 million budget deficit.
CPS proposed closing the budget gap by:
- Reducing spending across the district
- Cutting some staff positions and student programs
- Counting on additional funding that could come from the City or State later this year.
Some of these decisions directly affect schools and students. Others are temporary and could change if additional funding is secured.
July 30: Chicago Board of Education’s “Unprecedented” Move to Pass FY2027 Budget
On Thursday, July 30, in what many have called a “shocking” and “unprecedented” move, the Chicago Board of Education voted 11-7 (with one member abstaining) to pass an amended budget for FY2027. The move calls on $150 million in new state dollars and reverses the proposed plan for 1,000+ layoffs.
Relevant Articles:
- Chicago School Board approves budget that reverses layoffs, but counts on shaky state funds. (July 30, 2026, WBEZ)
- Seeking to reverse layoffs, Chicago school board approves budget, assuming more state money will come. (July 30, 2026, Chalkbeat Chicago)
- CPS is counting on $150 million more from Springfield. Will it deliver? (Aug. 1, 2026, Chicago Tribune)
- Start of CPS school year unlikely to be affected by budget changes, experts say (Aug. 3, 2026, WBEZ)
Why is the budget considered risky?
- Plan to collect additional state revenue is uncertain. Illinois passed its budget on June 1, 2026, and it’s uncertain if Illinois legislators will be able to agree to amend the budget to increase dollars to the Evidence-Based Funding formula. During last Thursday’s Board meeting, CPS district officials said it was illegal and in violation of board members' duties to include uncertain state revenue. Illinois lawmakers – including Governor Pritzker – remain skeptical about whether a plan will emerge to get CPS the money it needs for its FY2027 budget.
- TIF surplus is also viewed as uncertain. In the days leading up to Thursday’s Board meeting, CPS made the move to eliminate five proposed furlough days, assuming more money from the City of Chicago through TIF surplus funding. CPS officials presented on TIF surplus with a high level of certainty. The City of Chicago’s budget will not be passed until December 2026, so some have called TIF surplus revenue equally shaky.
- Facing concerns over whether lenders would support the district’s immediate cash needs, CPS officials repeatedly raised concerns about the budget relying on new state aid. During the July 30th Board of Education meeting and in a follow-up communication on July 31st from Superintendent/CEO Dr. Macquline King to the CPS community, CPS officials continued to stress the risky nature of the amended budget. Those concerns about the perceptions of lenders were mostly dispelled by Monday, Aug. 3.
What happens now
For now, we mostly wait and see, keeping the pressure on City and State policymakers to deliver for Chicago students and families.
The timeline to secure the needed funding from the City of Chicago and State of Illinois should play out as follows:
- Aug. 24, 2026: Classes for the 2026–27 Chicago Public Schools (CPS) academic year begin
- Nov. 17-19 and Dec. 1-3, 2026: Illinois General Assembly Fall veto session, when Illinois lawmakers will have the chance to reconsider the 2026-27 budget and other legislative items. The ILGA must receive super majority approval to override the state’s budget that passed on June 1, 2026. This is when the additional $150 million in state aid would be approved.
- Dec. 31, 2026: City of Chicago's FY2027 budget must be formally voted on and passed by the City Council by December 31. This is when the TIF surplus (and CPS’s share of it) will be determined.
Bottom Line
CPS approved this year's budget without cutting any positions or taking on new borrowing to cover day-to-day expenses. However, the budget still relies on two lines of revenue that have not yet been committed.
Overall, CPS still does not receive enough funding to fully meet the needs of its students. Until Illinois provides more funding, addresses CPS's unique teacher pension burden, and local leaders identify additional revenue, CPS will continue facing difficult budget decisions that affect students, families, and schools.
Remind me, why is CPS Facing a Budget Deficit anyway?
Several factors contributed to this year's budget challenges:
- Federal COVID relief funding has ended. CPS used one-time federal dollars to hire staff and expand services, but many of those ongoing costs remain.
- Student needs continue to grow, particularly among students with disabilities, multilingual learners, and students experiencing homelessness.
- Enrollment continues to decline. Every CPS school receives a minimum level of funding and staffing, but schools with fewer students generally receive less resources.
- Illinois still underfunds CPS. The district currently receives only about 73% of the funding the state's own formula says it needs to adequately educate its students.
- Unlike every other Illinois school district, CPS must pay most of its own teacher pension costs.