CHICAGO — The budget crisis at Chicago Public Schools has deepened. Interim CEO Macqueline King announced Thursday that the district’s deficit now stands at $734 million — a shocking $205 million higher than previously reported.
The announcement came during a Chicago Board of Education meeting, where King explained that the updated figure includes a $175 million pension payment that was not accounted for in the earlier estimate.
“This new number reflects obligations that were not fully factored in when the initial $529 million figure was released,” King told the board.
Pension Obligations Drive Sharp Increase
The unexpected jump in the deficit is largely due to a $175 million contribution required by the city’s pension fund to cover certain CPS staff, according to CBS News Chicago. District officials said the remaining increase stems from other operating costs now being reassessed as part of the final budget process.
CPS has not yet released a formal budget for the upcoming school year — a delay that concerns both school leaders and public advocates. Traditionally, the district shares its proposed budget by late June, allowing time for public input and board approval.
Chicago Teachers Union Urges Emergency Action
In response to the updated deficit figures, Chicago Teachers Union President Stacy Davis Gates called on the district to consider borrowing in order to avoid layoffs and program cuts. She also intensified pressure on state lawmakers to increase education funding.
“CPS needs to secure a bridge loan to avoid devastating cuts,” Davis Gates said. “We must also fight for what the state’s own formula shows — $1.2 billion more annually should be going to our schools.”
Davis Gates’ remarks align with broader concerns that Illinois’ current evidence-based funding formula consistently underdelivers on what CPS is entitled to receive.
Board Faces 60-Day Deadline to Finalize Budget
Per state law, the Board of Education has 60 days to approve a new budget once proposed. If the board misses this deadline, significant cuts to staffing, programming, and operations may follow — a scenario school leaders hope to avoid.
The district is expected to finalize and present a draft budget in July, though no official date has been set. Stakeholders from across Chicago, including parents and education advocates, are now watching closely to see how the board and city respond to the updated financial gap.
Do you think CPS should borrow to cover its deficit — or demand the full $1.2 billion owed by Illinois? Share your opinion now at ChicagoSuburbanFamily.com.
