Layoffs likely as Chicago Public Schools wrestles with $529M budget shortfall

After years of enjoying billions in COVID-19 pandemic aid, Chicago Public Schools (CPS) is coming to grips with the idea of downsizing, a left-leaning news organization admits.

“The challenge ahead marks the first time in recent years that CPS has had to consider deep school-based cuts,” writes Reema Amin for Chalkbeat Chicago. “That’s largely because the district benefitted from a windfall of nearly $3 billion in federal COVID relief money over the past four school years, which supported 7% of school budgets, according to a Chalkbeat analysis.”

The school board recently heard a presentation suggesting removal of up to 1,700 positions, although “it’s not clear if the number represents a net reduction in the overall number of CPS employees,” Amin noted. 

“While some of the belt-tightening could include cutting vacant positions, it would ‘overwhelmingly’ involve layoffs, according to a CPS source who spoke on condition of anonymity because they were not authorized to speak with the press.” 

As of June 30, 2024, the district employed more than 41,000 people. 

“Although student enrollment has declined, the number of teachers, principals, school support staff, and central office administrators directly employed by the school district has increased — growing from around 36,000 staff five years ago to more than 41,000 in the 2023-24 school year,” Becky Vevea wrote in another Chalkbeat article. 

However, the district now faces a budget shortfall of $529 million. 

“The expected $529 million gap between revenues and expenses is calculated after accounting for several new expenses, including the new teachers contract, potential raises for principals as part of their union’s negotiations, and increased costs related to SEIU and other unions, according to the internal presentation,” Amin wrote. 

‘Ridiculous, irresponsible, intergovernmental spat’ 

The Chicago Teachers Union (CTU) has long drawn community ire for its ongoing calls for increased funding and ties to the city’s mayor, Brandon Johnson. 

“Johnson and CTU (the two are joined at the hip) refuse to consider desperately needed school consolidations and other savings in a district in which a third of schools aren’t even half full,” wrote the Chicago Tribune in a recent editorial. 

Journalists bemoaned a politically charged dispute between the city and district over paying more than $300 million in an underfunded pension plan for nonteaching CPS employees and other city workers. 

“Keeping straight on which governmental body owes what to which other agency and the rationale each offers for why the other should pay is difficult for journalists and finance experts,” writers argued. “Imagine how confused ordinary taxpayers are by this ridiculous, irresponsible, intergovernmental spat.” 

Meanwhile, the district faces criticism over continued poor academic performance even as funding soars to nearly $20,000 per student. 

“Taxpayers are spending tens of thousands of dollars per student at public high schools in Chicago, and at two schools, the number is more than $100,000 per student,” writes The Center Square. “Leo Catholic High School on the city’s South Side, meanwhile, has achieved 100% graduation rates for over a decade at a fraction of the cost.”