TODAY: Chicago Public Schools board could pass nearly $10 billion budget
Illinois Policy Institute experts are available to discuss CPS’ ongoing financial challenges

CHICAGO (July 30, 2026) – The Chicago Board of Education could approve a nearly $10 billion budget today for Chicago Public Schools that relies on hundreds of millions of dollars in one-time revenues, fund sweeps and temporary savings to close an estimated $732.5 million deficit.

Since 2020, CPS has grown its operating budget by $2.4 billion, adding 8,250 employees, despite serving more than 24,000 fewer students, according to new research from the Illinois Policy Institute. More than 83% of the spending increase has gone toward salaries and benefits.

Illinois Policy Institute experts are available to provide budget analysis, highlight improvements over prior years and discuss issues that could lead to perpetual budget gaps in the future.

Details of the proposed budget:

• The proposal includes an additional $185 million in unapproved TIF surpluses; $111 million in projected additional one-time revenue from state funding, Medicaid reimbursement and healthcare rebates; and $113 million from a midyear hiring and spending freeze.
• The budget includes $340 million in savings from school funding changes, staffing adjustments, central office reductions and layoffs.
• The district sees 58% of CPS schools underutilized and a union contract expected to add $1.5 billion in costs over four years.

”While the CPS board is attempting to make more responsible choices, its current trajectory is unsustainable,” said Bryce Hill, senior director of fiscal and economic analysis at the nonpartisan Illinois Policy Institute. “Temporary fixes such as fund sweeps, hiring freezes and one-time revenues don’t address the underlying problem. Until staffing, facilities and spending better reflect enrollment realities, Chicago taxpayers should expect these budget crises to continue.”

To learn more about the institute’s analysis of the proposed CPS budget, visit illin.is/CPSbudget.

For bookings or interviews, contact media@illinoispolicy.org or (312) 607-4977.