Chicago Public Schools released a proposed $9.88 billion budget on July 15. It mixes two different kinds of savings. Staff cuts can lower costs beyond this school year, while five furlough days would save money only once. Danny Vesecky of the Civic Federation described that split to Chalkbeat, which reported the total for 2026-27.
CPS began with a $732.5 million deficit this summer. District leaders said layoffs, added revenue, and other savings took a $450 million bite out of it, Chalkbeat reported. Subtracting those figures leaves $282.5 million. CPS also raised the amount it expects from the city's tax increment financing program, known as TIF, from $100 million to $200 million. Chalkbeat reported both figures but did not provide a line-by-line bridge showing whether the $200 million projection is part of the $450 million total.
The district is laying off about 760 teachers and 800 school-based support staff this week, according to Chalkbeat. CBS News reported 801 teachers' aides. Officials said most are likely to find open jobs at other schools. Last year, CPS sent layoff notices to 1,450 employees, and officials said about 75% were rehired. More than 160 central office and citywide administrators were also laid off on Friday. CPS said those cuts will save about $18 million.
At the school level, CPS will have fewer general education teachers. The district raised student-to-teacher ratios by one student. It plans to add bilingual teachers. It will also add special education teachers and classroom assistants. The plan cut assistant principals from small schools. CPS has not publicly disclosed campus budget allocations, Chalkbeat reported.
The five furlough days would save about $85 million this year. They would fall on days when students are out of school and teachers would otherwise have training. Vesecky called the furloughs a reasonable but temporary step because they will not reduce district costs or deficits in future years, Chalkbeat reported. CPS also plans to freeze some hiring and spending in the second half of the year unless more city or state revenue arrives.
The $200 million TIF projection would require the Chicago City Council to declare a surplus, CBS News reported. CPS received more than $500 million in TIF money last year, a record amount. District officials told Chalkbeat they used a lower projection this year to be more conservative.
Schools chief Macquline King called the budget process "painful for everyone all the way around," according to Chalkbeat. The Chicago Teachers Union called the plan "dead on arrival," CBS News reported. The union and the district's principals union said the cuts would hurt students. The teachers union also sent CPS two letters demanding bargaining over staffing cuts.
The proposal now moves into public review. CPS asked the Chicago Board of Education to approve the final budget by July 30. District officials said that timing would let CPS borrow against future tax revenue during a Cook County property tax delay, Chalkbeat reported.