CHICAGO, Illinois, August 3, 2026 — On Thursday night, the Chicago Board of Education approved a budget totaling about $10 billion. The vote follows almost eight hours of debate where board members argued for hours, including an unprecedented two-hour break.
The final vote was 11-7 after members of the board made last-minute adjustments to the budget, overturning hundreds of scheduled worker layoffs.
The meeting was preceded by a $732 million deficit-a gap that then-CEO Pedro Martinez had outlined cuts to close, including staff layoffs.
And the response from the teacher’s union in Chicago was forceful. Outside, CTU President Stacy Davis Gates revved up supporters against the union-opposed layoffs.
The union won the support of eleven board members. For them, the budget instantly turned into a demand for state action. Approximately 1,000 jobs are restored in the latest version, which also assumes CPS will receive $150 million more from the state that has not been promised to it.
Money Is Not Guaranteed
Illinois lawmakers have not signed off on that $150 million. It’s a gamble, not a known source of revenue.
Prior to the vote, Martinez cautioned the board that the plan could leave CPS in the red by September and put payroll at risk. After the vote, he sent an email to parents outlining the potential financial risks.
“But right now, we have no certainty of being able to secure the short-term financing necessary to pay staff in September which would shut down our district just as students and staff return,” Martinez wrote.
Budget officials at CPS cited history, noting a decade ago when a district built its budget expecting state money that never materialized. This resulted in midyear layoffs and furlough days, while also adversely impacting the district’s credit rating and increasing borrowing costs.
What the Union Says
CTU sees the vote differently, describing it in a message to members as an end of a familiar pattern.
The union wrote, “It’s been a reality of this annual ritual of layoffs and cuts for so long – it is so easy to believe that one should plan on being paid what they are due – that it’s hard to realize how epic this is.”
CPS Chief Budget Officer Mike Sitkowski said the risk was clear. “I do not believe any outcome from here, whether it goes great or terribly wrong, will play out in a vacuum in the context of what happens next for Springfield,” he noted.
Where Extra Money Could Potentially Be Sourced From
There are other ways CPS could bridge the gap on its own. A bigger surplus from the city’s TIF districts-tax increment financing zones set up to help pay for development projects-could be declared by Mayor Brandon Johnson.
Johnson did that last year when TIF surplus funds sent $576 million to CPS.
So has state Sen. Robert Martwick, a Democrat from Chicago who is calling for Springfield to act. Under its own rules, Illinois’ school funding formula still owes CPS $2 billion, he has argued.
“That burden is carried by all of us,” Martwick explained. “We echo the cries of those who blame Springfield for lack of courage to fix our revenue system and increase revenues to fund education adequately but fall on a collective guilty conscience for not taking up the struggle.”
The funding debate continues this year and was argumentative through the past school year
Since at least August 2026, the debate over what constitutes fair financing for CPS is part of a greater statewide discussion about education financing and allocating limited resources to this or that school district. This means Illinois is able to use an evidence-based funding model, which was deliberately crafted to close the funding gap between school districts by pinpointing additional resources for under-resourced systems.
Proponents of more aid for the state counter that, despite Illinois’ recent funding boost to education, Chicago Public Schools has long been under siege financially while fiscal watchdogs warn against leaning on revenues not formally appropriated. Education finance experts point out that long-term budget stability relies on ongoing sources of revenue, rather than one-time funding solutions, making upcoming decisions by state lawmakers all the more consequential for the district’s financial outlook in 2026-27.
The Bigger Picture
Over the years, CPS has seen a major expansion in its budget.
- Budget: $6B in 2018 → $10B today
- Enrollment: Down 45,000 students since 2017
Staff have not shrunk to match; in the last decade, CPS has added about 10,000 more staff members.
A gap was raised by Martinez prior to the vote, who also noted an alternative proposal. His original plan would have rehired most displaced staff into other vacant positions, including special education and bilingual roles.
Why the Budget Decision Matters
Far more than classroom spending depends on public school budgets. They inform decisions about how many staff members are needed, what kinds of student support services should be offered, transportation, special education, facility upkeep, and financial sustainability over the long term.
When districts approve budgets that rely on funding not yet in hand, the dynamic can play out for employees, students, taxpayers, and future borrowing costs. So the Chicago Board’s vote doesn’t just constitute a budget approval-it’s a local referendum on how state and local governments equally share the financial burden of public education.
What Happens Next
School starts Aug. 24. In the coming weeks, decisions in Springfield may determine whether the district can fund September payroll.
As of now, that budget is as passed. CPS families and staff will soon see if the wager on state cash pays off.
