Partners Express Opposition to CPS Assuming $175MM Pension Obligation

March 2025

Dear Members of the Chicago Board of Education,

We, the undersigned parents, educators, students, community leaders, and organizations, write to express our strong opposition to the City of Chicago’s proposal that Chicago Public Schools (CPS) pay $175 million toward the Municipal Employees’ Annuity and Benefit Fund (MEABF) pension obligations.

While we recognize the challenges involved in balancing competing financial priorities, we firmly believe that accepting this financial responsibility would severely undermine CPS’s ability to serve its students and maintain stable school environments. We urge you to vote against this reimbursement request.

Since its establishment in 1921, the MEABF pension responsibility has belonged solely to the City of Chicago. Only recently, beginning in 2020, has the City requested partial reimbursement from CPS. This was relatively painless for CPS as it was supported by temporary federal COVID relief funding. With these temporary funds now exhausted and the increasing cost of this payment, the City’s request places an unreasonable financial burden on CPS.

Meeting this request would force CPS to make severe cuts mid-year, directly harming classroom instruction and student support services. The alternative—borrowing funds at high-interest rates—would increase CPS’s already substantial debt, further weakening the district’s finances and draining resources away from students and schools. Currently, CPS spends approximately $817 million annually on debt payments, roughly $2,200 per student.

We understand the City’s rationale—that CPS employees comprise 60% of MEABF membership. However, membership percentages do not accurately reflect financial obligations. Only one-third of the pension liabilities belong to CPS employees, while two-thirds are attributable to City employees. Shifting this disproportionate financial burden onto CPS would unfairly penalize the district and its students.

Recently, Kids First Chicago convened more than 120 parents, educators, and community members to thoroughly present both sides of this debate. When asked if the CPS Board should agree to make the $175 million payment, the message was overwhelmingly clear: over 75% said no, only 5% said yes, and another 20% wanted more information. These results clearly demonstrate the community’s strong opposition and concern about this proposed reimbursement. As elected and appointed leaders, these are your constituents—you owe it to them to listen and represent their voices.

We believe the path forward involves comprehensive, sustainable solutions that do not jeopardize classroom resources or school stability.

Your decision on this issue will have profound consequences. By rejecting this reimbursement request, you send a powerful message prioritizing the educational needs of Chicago’s children and demonstrating fiscal responsibility. Now is the time for responsible leadership that protects our students, educators, and communities.

We stand together, urging you to vote "NO" on reimbursing the City of Chicago’s pension obligation.