Chicago Public Schools has already cut $165 million from its $734 million budget deficit, but still faces a shortfall of hundreds of millions as key fiscal deadlines loom.
Interim Superintendent Dr. Macquline King must present the budget by August 13 to allow for legally required hearings and public scrutiny before the Board of Education votes. The Chicago Board of Education must then pass a balanced budget by August 28.
Despite the fiscal strain, CPS is moving forward with plans to expand community-focused schools aimed at supporting students beyond academics.
Why the Shortfall?
CPS’s $734 million deficit stems from:
Rising operational costs
Expiration of federal pandemic relief funding
Major building maintenance needs
Significant debt and pension obligations
To date, CPS has implemented about $165 million in savings through central office layoffs, reductions in crossing guard staffing, and operational efficiencies. However, roughly $569 million in additional savings or revenue is still needed.
The district appears to be aiming to reduce the deficit to around $400 million; if that target is not achieved, mid-year program cuts could be severe.
Community Feedback
Over the summer, CPS held multiple in-person and virtual feedback sessions to gather public input on potential cuts and revenue ideas. Common suggestions included reducing pension contributions and consolidating under-enrolled schools (something that has been wildly unpopular in Chicago).
Where CPS Funding Comes From
Local property taxes: about half of the annual budget
State aid: based on Illinois’ evidence-based funding formula
Federal grants: including pandemic relief (now ending)
Borrowing: bonds or short-term loans repaid by taxpayers
Because property taxes are the largest funding source, any CPS budget shortfall can pressure the city to raise property tax levies.
Deficits & the Taxpayer Impact
When CPS runs a deficit, its main options, each with taxpayer implications, are:
Raise property taxes: directly impacts homeowners and indirectly impacts renters
Borrow more: increases debt service and can raise taxes later
Request more state aid: still funded by Illinois taxpayers
Cut services or close schools: affects community amenities and potentially property values
Example: Possible FY2025 Tax Impact
Under Illinois law, CPS can increase its property tax levy by up to 5% or the rate of inflation (whichever is lower). For FY2025, the levy increase is capped at 3.4%, but the 5% cap remains the maximum allowable under high inflation conditions.
If CPS raised the levy to the full 5%, the owner of a $300,000 home could pay an estimated $150–$200 more per year in property taxes (actual amounts vary by location and exemptions).
How to Participate:
Public involvement is key. Over the summer, CPS encouraged open dialogue guided by norms like “listen to understand” and “embrace curiosity.”
CPS Public Budget Hearings:
August 20 – 12–1:30 p.m. & 6–7:30 p.m.
August 21 – 3–4:30 p.m.
From CPS:
CPS staff, families, and community members are invited to attend virtual hearings on the District's FY2026 Capital Plan. ASL and Spanish interpretation will be available. Hearings will stream live at youtube.com/chipubschools.
Advance registration to speak opens Wednesday, August 13, at 5:00 p.m. and closes Friday, August 15, at 5:00 p.m. (or sooner if 30 speaking slots fill). Public comments may also be submitted online from August 13 at 5:00 p.m. through August 21 at 7:30 p.m.
Budget Vote: The Board of Education is scheduled to vote at its next full meeting on August 28.
Public Involvement Opportunity #2 – CCPSA:
The Community Commission for Public Safety and Accountability’s (CCPSA) plan to limit the reasons Chicago police officers can make traffic stops is moving forward despite its own survey showing most city residents oppose such restrictions.
The CCPSA did not release survey results until the 18th District panel filed a Freedom of Information Act request. More on this here.
Next CCPSA Public Meeting:
August 28 at 6:30 p.m. – DePaul College Prep