Chicago Public Schools Budget Approval Crucial to Avoid Payroll Disruption

Chicago Public Schools (CPS) leaders emphasized the urgent need for the district’s $9.88 billion budget to be approved this month. Without approval, CPS risks missing payroll for its 45,000 employees, according to CPS CEO Macquline King. Failure to meet payroll in September could disrupt student services, King noted in an interview with the Tribune.

Budget Vote Amid Financial Challenges

The Board of Education is scheduled to vote on the 2026-27 budget on July 30. This comes only a month before the state-mandated deadline. The district recently laid off over 700 teachers as part of its new spending plan. A spending freeze is planned for January, and five paid professional development days may convert into furloughs unless additional funding appears from the city or state.

The Chicago Teachers Union (CTU) urged the board to reject the budget proposal during a Monday hearing. However, CPS leaders stated a delay is not possible, as an approved spending plan is essential for securing short-term borrowing. The district uses tax anticipation notes (TANs) to manage cash flow. Delays in Cook County property tax payments have increased the need for these loans.

CTU members protested outside CPS headquarters on July 20, 2026, ahead of the Board of Education’s budget meeting.

Seeking Additional Revenue

Board members pressed CPS for a clear strategy to secure more state or external funding. The district receives only 73% of its adequacy target under the state’s Evidence-Based Funding formula. CTU and supportive board members have called for a special legislative session to approve additional funding.

Board member Jitu Brown expressed feeling pressured by the imminent decision, questioning the purported equitable impact on classrooms. Teachers and staff, especially in special education, voiced concerns during public comment about the effect of budget cuts on their schools.

Addressing a Significant Deficit

CPS leaders defended the cuts as vital to address a $732 million deficit. Furloughs are a last resort, King said, scheduled for non-instructional days to minimize student disruption. Each day would save $17 million, but the loss of five days would reduce teachers’ pay by about 2%. This would effectively halve their contractual raises.

King expressed hope to avoid furloughs if additional funds become available. She emphasized the importance of professional development days.

The district is also considering other revenue sources, such as tax increment financing and Cook County’s interest-free loan program. Last year, CPS spent $43 million in interest on short-term borrowing due to property tax delays. Participation in the county’s loan program could help alleviate some of these costs.

CPS has struggled with financial pressures due to rising costs and over $9 billion in long-term debt. CTU staged a rally outside CPS’s downtown offices, protesting the budget cuts and furloughs. CTU recording secretary Vicki Kurzydlo highlighted that students and educators are facing the consequences of a crisis they did not cause.