Split school board debates borrowing to close CPS budget deficit

CHICAGO (WGN) — A second public hearing concerning the Chicago Public Schools budget is underway downtown as a split school board will soon have to decide how to fill a looming $734-million budget deficit. 

It’s crunch time for CPS leaders as they are required by law to pass a budget by the end of the month. Differences over how to close a $734 million deficit remain, however.  

Amid two public hearings about interim CEO Macquline King’s proposed budget, several speakers made sure their voices were heard.  

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“When you start cutting the budget, I am a witness to the pipeline to prison for special education,” said speaker Vicki Willis.

“Any Brandon bailout would be paid for by cuts to Latino students,” voiced Juan Rangel with the Urban Center.

“Approving a budget that closes operational deficit with borrowing is extremely risky,” said Nelson Gerew with the Chicago Public Education Fund.

“Do you want to be responsible for eliminating what could be a student’s only hot meal for the day? Do you want to be responsible for eliminating custodians and leaving our schools unclean?” asked Carolina Rutherford with the Chicago Teachers Union.

The proposed budget erases the deficit through layoffs and closing positions, including crossing guards, lunchroom workers, custodians, and central office positions. It also refinances debt. It does not include a high-interest short-term loan backed by Chicago Mayor Brandon Johnson. The district says it will only make a $175 million pension payment if it receives greater funds from the state.  

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The borrowing issue has divided the board. 

“We do not want to take out a loan, but we want the option to do it if state funds don’t come through,” said Jitu Brown, a CPS school board member.

“Balancing the budget on the backs of our children so we can help out our mayor is not responsible,” said Jennifer Custer, also a CPS school board member.

As negotiations continue behind closed doors, Mayor Johnson, on leave from the Chicago Teachers Union, says he’s confident the district will find money to pay for his education priorities.

“There won’t be a stalemate, there’s no shutdown,” Johnson said. “We’re committed to making sure that our children, no matter where they live, have a world-class education and a school that’s fully funded.”

Budget solutions are needed and fast, as officials informed the board Tuesday that they project a one-billion-dollar budget shortfall by 2027.