After divisive debate, Chicago school board passed $9.96 billion budget banking on uncertain state funding
After a divisive debate, the Chicago Board of Education approved the district’s $9.96 billion budget Thursday, adopting an amendment that anticipates $150 million in state funding to reverse school-level cuts.
The district’s 2026-27 budget originally included the layoffs of 760 teachers, department cuts and a midyear spending freeze to close a $730 million deficit. The controversial amendment eliminates the spending freeze and plans to undo at least some of the planned layoffs.
But it’s unclear whether additional state funding will materialize.
Lawmakers already passed the state’s budget in June — closing their own $2 billion deficit — and Chicago Public Schools leaders say they’ve been given no indication that more funding is available.
CPS CEO Macquline King warned the budget amendment may leave the district vulnerable to midyear school cuts if the money doesn’t come through. Lenders will also “not look favorably” at unconfirmed revenue, which could lead to credit downgrades and higher borrowing costs, officials said.
“We need to learn from our mistakes instead of repeating them,” King said.
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Heck, I would dig a little deeper on whether even more state aid is a good idea. Mostly, better performers and higher spenders lean local.
(County-based districts are a great compromise: equity by metropolitan area, then use state aid for the poor counties without breadwinners.)
And:
Other Boards have been angry with Milwaukee. Here is Waukesha on state aid.
~”When Milwaukee passes a referendum, they are passing on a tax increase to every other district. These referendums are killing us from a district that cannot even file its financial reports on time.”
