$9.9 Billion Budget, $128 Million Holes: Chicago Public Schools’ Financial Crisis Worsens

Chicago Public Schools Faces Budget Crisis: District Cuts Costs, Lays Off Staff, and Seeks Alternative Solutions

Chicago Public Schools approves 2024-25 budget despite union opposition, with potential future costs looming

On Thursday, the Chicago Board of Education approved a $9.9 billion budget for the 2024-25 school year despite opposition from the Chicago Teachers Union. This budget addresses a $505 million shortfall but doesn’t include potential costs from ongoing contract talks with teachers and principals. The Civic Federation estimates these future costs could be about $128 million causing continued tension between CPS, Mayor Brandon Johnson, and the unions.

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(photo: google)

Can Chicago Find New Funding Sources Amidst Financial Woes?

The budget aims to fix the district’s finances by cutting central office costs, restructuring debt, and using a new fairer funding model. It also depends on $196 million from federal grants and savings from unfilled job positions. Despite these efforts, CPS has laid off around 600 paraprofessionals and faces criticism for relying on these unfilled positions to balance the budget. The district and unions are still debating potential solutions such as seeking more state funds or taking out loans with CPS predicting a similar shortfall next year as federal funds run out.

Experts say finding new money is difficult and may require tax increases or spending cuts. The governor’s office has indicated that no extra funds will be given to CPS this year and points to a balanced budget with increased state funding for education. Meanwhile, the Chicago Teachers Union plans to keep pushing for more money and will release a report to show problems with overcrowded and understaffed classrooms, according to the report of Chicago Tribune.

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