A new report highlights financial challenges for Chicago’s school board, urging cuts and state support to avoid a fiscal disaster.
The report points out several problems, like rising staffing costs, falling enrollment, and aging buildings. Since 2021, federal COVID relief funds have masked these issues, but that money is running out. Now, the district faces annual deficits of at least $500 million, not including the costs tied to the ongoing teachers’ contract negotiations.
If the situation isn’t handled well, the report warns of severe consequences, including a potential state takeover of CPS finances. While the financial outlook is better than a decade ago, the Civic Federation stresses the need for urgent action. They believe a mix of budget cuts and increased state funding could prevent a worst-case scenario.
CPS has seen its fund balance improve from a negative $1.2 billion in 2016-17 to a positive balance today. However, the state still needs to step up its funding for teacher pensions, as CPS currently pays a significant portion of those costs.
The report also highlights that CPS has added over 9,100 staff since 2019, even as student enrollment has dropped by more than 85,000 since 2010. While CPS leaders argue that these staff increases are essential for student recovery post-pandemic, the report suggests that many schools are underutilized, with some operating at less than one-third capacity.
CPS is spending more per student than similar districts, indicating there might be room for better resource allocation. With limited revenue sources, the new board must focus on aligning personnel and operations with actual student needs.
Recently, the Chicago Board of Education approved a moratorium on school closures, as studies show that such closures can harm students and don’t save as much money as expected.
