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Chicago Public Schools is considering laying off hundreds of school-based staffers next school year — one of multiple scenarios being considered to close a $529 million budget gap, Chalkbeat has learned.
Between 1,600 and 1,700 positions based inside schools could be cut, according to a presentation used to brief board members obtained by Chalkbeat. However, it’s not clear if the number represents a net reduction in the overall number of CPS employees. The district currently employs more than 41,000 people.
While some of the belt-tightening could include cutting vacant positions, it would “overwhelmingly” involve layoffs, according to a CPS source who spoke on condition of anonymity because they were not authorized to speak with the press.
The potential cuts are not yet final. The presentation suggests there are ways to lessen the blow, specifically by getting more state funding or more city money than it is already expecting from special taxing districts meant to spur development, known as TIFs. Mayor Brandon Johnson has the power to declare a surplus of those funds, and CPS is assuming it will again receive roughly $300 million in those funds next year, according to the presentation.
The CPS budget for next school year, which would begin July 1, must still go through a public hearing process and be formally adopted by the board. School budgets are typically shared with principals and Local School Councils in the spring. By state law, the district’s budget must be balanced.
The challenge ahead marks the first time in recent years that CPS has had to consider deep school-based cuts. That’s largely because the district benefitted from a windfall of nearly $3 billion in federal COVID relief money over the past four school years, which supported 7% of school budgets, according to a Chalkbeat analysis.
In a statement, CPS spokesperson Mary Ann Fergus said the district is considering multiple scenarios, including what happens if state or local revenue doesn’t change. The different scenarios don’t “necessarily reflect the district’s recommendation.” She added that CPS leaders, students, parents, and advocates will travel to Springfield next week to push for more state funding.
“CPS will continue to seek every opportunity to boost revenue and minimize cuts, particularly those that could disrupt the learning experience or impact our dedicated staff,” she said. “Our primary focus will remain on safeguarding the quality of education for our students and minimizing any disruptions to their daily learning.”
The school board’s office did not return a request for comment. Service Employees International Union local that covers school support staff also did not respond to a request for comment.
In a statement, Chicago Teachers Union president Stacy Davis Gates said the potential cuts are “evidence of a fired CEO’s failure to lead.”
CPS CEO Pedro Martinez was fired without cause in December and will leave in June. He will likely take a job as the new education commissioner of Massachusetts.
“It’s time for this board to define for Chicagoans how it will lead and show there’s no place for going backwards on the district’s commitment to quality public education,” Davis Gates said.
Closing budget gap could mean at least $200M cuts to schools
The expected $529 million gap between revenues and expenses is calculated after accounting for several new expenses, including the new teachers contract, potential raises for principals as part of their union’s negotiations, and increased costs related to SEIU and other unions, according to the internal presentation. CPS is also expecting increases in charter school funding and teacher pensions, to comply with state laws. The projection does not, however, include a much-debated pension reimbursement to the city of Chicago, which the district declined to pay this year. That suggests the district will, for now, refuse to reimburse the city for the pension payment next school year.
The projected budget gap does not include new risks to federal funding under President Donald Trump, such as Title I, which provides additional funds to about 400 Chicago schools with high shares of students from low-income families.
If the board chooses to balance the budget through this plan, it would reduce the deficit by a total $200 million to $260 million, about 6% to 7% of the $3.5 billion in funding that goes directly to schools, according to the presentation. The district also floated cutting central office expenses by $20 million to $40 million — 7% to 13% — and trimming another nearly 20%, or between $250 million and $280 million, from centralized support services and staff that work more directly with schools.
The plan could mean cuts to discretionary funding for high-needs schools, staff that provide additional support to struggling students, such as tutors, and social-emotional support, according to the presentation. However, it also said those potential cuts would keep class sizes at contractual limits in the new Chicago Teachers Union contract.
The contract lowers kindergarten class sizes to 25 students and adds a teaching assistant for any class with more than 23 students, the union previously told Chalkbeat. In first through third grade, class sizes would be 28, and in fourth through eighth grade, the cap is 30 students.
Cuts could also impact support staff, such as custodians, security guards, building engineers, lunchroom staff, and crossing guards paid for under the Safe Passage program. The internal presentation also mentioned trimming transportation costs that are not legally mandated. That could impact recent increased efforts to restore transportation to general education students who largely attend magnet or selective enrollment schools.
However, in its presentation, the district foreshadowed that there could be cuts even if new revenue comes through. For example, if the district received $300 million in additional funding through either state or city funding, it could mean a $70 million to $110 million cut to direct school funding.
Despite the potential cuts, the presentation said CPS is “committed” to maintaining teaching staff that prioritizes “reasonable class sizes” and “differentiated support for high-needs schools,” as well as support for kids with greater needs, such as students with disabilities and English learners.
According to the CPS source, the district does not prefer instituting a hiring freeze to address cuts because high-needs schools are typically where vacant positions exist. That means a hiring freeze would impose greater burdens on the schools that likely need the most staffing. Cuts would more likely impact larger schools.
School board members look to city, state for help
School board member Jitu Brown said while the presentation was “thorough,” it wasn’t a surprise. District officials have publicly shared for months that CPS expected at least a half-billion-dollar deficit.
He argued that there hasn’t been a solid legislative strategy from CPS to convince state lawmakers to send funding help. He also thinks CPS’s resistance to taking out a loan in order to reimburse the city for some pension costs was a misstep.
District officials worried that taking out such a loan would result in high-interest rates that would become difficult to pay back down the road.
While CPS is not legally required to pay the city back for those pension costs, it had done so under Mayor Lori Lightfoot. Brown worried that by not paying the city back, City Council has lost interest in sending more TIF surplus to the schools. Aldermen and city officials warned the school board in March that they could hold back on funding help for CPS if the district did not reimburse the city for the pension payment.
Brown said he and other board members plan to press state lawmakers for more funding and more relief on certain costs, such as teacher pensions that other districts don’t pay. Those are issues that district staffers have also previously highlighted.
“To me this whole piece has been due to a lack of leadership,” Brown said. “I’m not in favor of any budget cuts.”
Board member Carlos Rivas said he supports pushing the city for more TIF surplus funding to help make an “absolutely terrible” cut “much more manageable.” He placed more blame on city officials for not developing a strong state advocacy campaign and doesn’t believe the state is going to bail out CPS. But he believes there’s political will on the City Council to support the public school system, despite the tension around the pension payment.
“I believe we all want great schools so I don’t believe the City Council will hold that against us,” Rivas said.
Financial issues can be tied to the end of the COVID relief money
In the wake of the coronavirus pandemic, CPS spent nearly $3 billion in federal COVID relief funding on many school-based investments, primarily staff, including a cadre of new academic interventionists. The district touts those investments as helping students perform better than some of their peers nationwidef after the pandemic.
However, those were not one-time costs, and the money dried up last year. The district had to close a roughly half-billion-dollar deficit this year, too, as it tried to hold on to many of those new investments.
The district’s internal presentation outlined possible cuts that include many of those post-COVID investments: cuts to professional development, after-school programming, curriculum support, and academic interventionists — a position that has already been pared down since last school year.
Martinez appears to be leaning toward pushing for more TIF funding. At Thursday’s Board of Education meeting, he said after conversations with state legislators, he isn’t confident more state funding is in the cards. Illinois is working to close a $3.2 billion deficit for the coming fiscal year.
The internal presentation also outlined scenarios where the CPS deficit could grow — and require even deeper cuts. For example, the pension reimbursement would increase the district’s projected deficit, as would about $30 million in costs to begin the planning and transitioning of five Acero charter schools into district-run schools by the fall of 2026. Those are separate from the costs related to eventually taking over the schools.
The board voted in February to take over the five Acero campuses previously slated for closure. Asked why the Acero transition costs weren’t included in the district’s deficit projection, a CPS source said “doing that would require significant cuts” and district staff wanted to ensure the board knows “what the consequences are.”
Reema Amin is a reporter covering Chicago Public Schools. Contact Reema at ramin@chalkbeat.org.
