CHICAGO — Chicago Public Schools is facing a staggering $730 million budget deficit, according to newly appointed interim CEO Dr. Macquline King, who addressed the financial crisis head-on during her first board meeting Thursday. The figure has sparked concern among educators, prompting a rally by CTU and SEIU Local 73 members demanding stronger public investment.
King said her immediate goal is to ensure a stable and smooth start to the upcoming school year, and announced plans for a community engagement process in the coming weeks to guide CPS through the financial turbulence.
“In the coming weeks, I’ll lead an engagement process to align the path forward,” King said at the meeting.
Breakdown of the $730 Million Gap
Previously, a $529 million deficit had been reported, but that did not include two major expenses:
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A $175 million payment to the Municipal Employees’ Annuity and Benefit Fund (MEABF)
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A projected $30 million cost to transition five Acero charter schools to district-run schools by fall 2026
CPS confirmed the updated numbers in an official statement Thursday night, emphasizing that the revised deficit accounts for all known revenue sources and potential costs.
“CPS remains committed to transparency and fiscal responsibility,” the district said, while reaffirming its commitment to student learning and essential services.
CTU, SEIU Rally Against Potential Layoffs
Outside the board meeting, members of the Chicago Teachers Union (CTU) and SEIU Local 73 staged a rally over fears of potential cuts or layoffs.
CTU President Stacey Davis Gates laid the blame on a lack of public investment and demanded additional revenue through state support and city TIF funds.
“Let’s tax the rich,” Gates said. “This is not rocket science, never has been.”
She cited examples of billionaire spending — including a jab at Jeff Bezos — to call attention to the disparity in public education funding.
Board Members Praise King’s Honesty
Board member Jitu Brown publicly applauded King for her directness, stating:
“You were just 100% honest about the budget deficit… We haven’t had honesty up to this moment.”
With trust, funding, and job security all hanging in the balance, CPS will now enter a period of public outreach and fiscal planning to address the widening gap.
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