Dr. King assumes this role at an important moment for the district. During her time as Interim Superintendent/CEO, she provided steady, capable leadership, guiding CPS through complex challenges while maintaining a clear focus on students, schools, and communities. Dr. King advanced a balanced FY2026 budget following an unprecedented series of community engagement efforts and coordinated support for students and families amid increased immigration enforcement. She also worked in partnership with the 21-member hybrid 海角直播Board of Education, helping to lay the groundwork for the transition to a fully elected board.

Superintendent/CEO King brings a deep, practical understanding of Chicago鈥檚 schools, shaped by decades of service in CPS, first as a teacher and then as a principal at two schools- Dumas Technology Academy and Courtenay Language Arts Center- as well as by her leadership in education policy for the City of Chicago.

鈥淒r. King has led through a period of significant transition and disruption with clarity, steadiness, and purpose,鈥� said Dr. Heather Y. Anichini, CEO of The 海角直播. 鈥淲hat distinguishes her leadership is her deep understanding of the day-to-day realities facing educators, young people, and communities in Chicago. She brings both the experience and the resolve to advance our shared commitment to young people even as fiscal challenges and governance changes persist, and community needs evolve.鈥�

We are encouraged by Dr. King鈥檚 commitment to advancing equity in the student experience and to strengthening opportunities for meaningful community voice and engagement. Her leadership reflects a clear focus on supporting schools and the people closest to students.

As Dr. King steps into this permanent role, the work ahead remains significant. Sustaining progress will require continued investment in school leadership, clear and consistent communication with those closest to students, and ensuring schools have the resources and flexibility needed to meet evolving student needs.

The 海角直播 remains committed to partnering with Superintendent/CEO King and her team to strengthen these conditions and support strong student outcomes for every student in Chicago.

Congratulations, Dr. King. We look forward to the work ahead.

CHICAGO 鈥� A unique survey confirms the vital role Local School Councils (LSC) play in preserving community-based decision-making, and identifies where continued investment could make it stronger. The 2025-26 LSC Engagement Survey, released by The 海角直播 (The Fund), included respondents from 64% of the 511 public schools in 海角直播with active LSCs 鈥� a critical anchor for school stability and community trust.

The Fund conducted the survey from August to November 2025 in partnership with the 海角直播 (CPS) Office of Local School Council Relations and Department of Principal Quality, with responses of 608 LSC members representing 325 public schools in Chicago. This research informs The Fund鈥檚 ongoing commitment to understanding what LSC members experience and what they need to strengthen relationships among principals, parents, teachers, and community members.

LSCs are school鈥慴ased governing bodies in CPS that typically comprise six parents, two community members, two teachers, one non鈥憈eaching school staff member, up to three students, and the principal. LSCs approve school budgets, select and evaluate principals, and oversee their schools鈥� Continuous Improvement Work Plans 鈥� three-year strategic plans that CPS requires every school to develop.

鈥淐hicago鈥檚 LSCs model is a national example of what community decision-making for public schools can look like,” said Heather Y. Anichini, Ed.D., president and CEO of The Fund. 鈥淭hese surveys clarify how we can invest in LSCs in ways that reflect their needs and strengthen local governance that is unique to Chicago鈥檚 public schools. The findings will continue to shape how we support LSC members and their school leaders going forward.鈥�

To complement the survey data, The Fund held five focus groups in early February 2026 with 36 LSC members representing 35 schools. The focus groups largely corroborated the survey findings

Top findings from the LSC Engagement Survey include:

• LSC members learn about their councils through school鈥慴ased and personal connections: 60% of respondents reported hearing about their LSC from school staff, current council members, or their principal.
• LSCs members see their councils as strong bridges between school and community: 75% of respondents said their council does a good job of connecting with community members and considering their input.
• Members generally have strong relationships with their principals: 83% of respondents agree that they work well with their current school leader.
• LSCs view themselves as strategic partners in their schools鈥� direction: Respondents ranked 鈥渕onitoring and approval of the CIWP鈥� and 鈥渁pproving budget decisions鈥� as the two top responsibilities of councils.听
• Several factors leave Chicagoans hesitating to join their LSCs: When asked about reasons that made them or people they know hesitate to join their council, respondents cited the time commitment for being a member (64%), lack of knowledge about schools (38%), negative associations with a previous LSC (22%), and language accessibility (6%).听
• LSC members feel prepared and supported, but a sizable minority think more training would be helpful: 86% reported feeling clear on their roles and responsibilities, and 79% know where to go for support, but a third (32%) thought more training would be beneficial. In open responses, members most often requested practical, hands-on training in several areas, including budget oversight, principal evaluation, and meeting management. Many also asked for clearer onboarding for new members; role-specific guidance for chairs and student representatives; and simplified, more accessible training formats.

In addition to the LSC Engagement Survey, The Fund provides programs to strengthen LSC effectiveness and relationships between principals and their councils. These include the LSC Working Group, which brings together parents and community members to design solutions to common challenges and develop tools that support the principal evaluation process.

In advance of the 2026 LSC elections on March 18, The Fund also held the LSC Election Accelerator Series 鈥� comprising virtual and in-person workshops 鈥� to help principals, assistant principals, parents, and community members reduce council vacancies and increase community engagement. More information about The Fund鈥檚 programs to support LSCs and school leaders is available in its 2025-26 Program Summary report.

鈥淥ver 20 years of research shows that principals have an outsized impact on student outcomes,鈥� said Anichini. 鈥淭hat鈥檚 why it鈥檚 so important to ensure that LSCs function well and have collaborative, productive relationships with their school leaders.鈥�

About The 海角直播

The 海角直播 (The Fund) is a nonprofit organization that improves Chicago鈥檚 public schools by investing in the talented educators who lead them. Its data-driven strategies increase the number of strong leaders in Chicago鈥檚 public schools. The Fund鈥檚 program, policy, and partnership efforts are designed to meet school leaders where they are, to accelerate their growth, and to enable their retention.

Media Contact

Brooke Rayford
Senior Manager of Communications
brayford@thefundchicago.org
The 海角直播

CHICAGO 鈥� The 海角直播 (The Fund) recently announced the appointment of Dr. Julie Morita, president and CEO of the Joyce Foundation, to its Board of Directors. A nationally recognized leader in public health and philanthropy, Dr. Morita brings deep expertise in policy reform, racial equity, and cross-sector collaboration to The Fund鈥檚 mission of ensuring every 海角直播public school has a high-quality principal.

鈥淛ulie Morita is one of Chicago鈥檚 most effective and compassionate civic leaders, and we are incredibly proud to welcome her to the Board,鈥� said Heather Anichini, President and CEO of The Fund. 鈥淗er career has been defined by a relentless pursuit of equity 鈥� whether through health care or philanthropy. Julie understands that student success relies on strong systems and strong leaders. Her experience managing complex policy issues and large-scale investments will be invaluable as we work to support the educators leading our city鈥檚 schools.鈥�

At the Joyce Foundation, Dr. Morita oversees the annual charitable distribution of $65 million, aimed at advancing racial equity and economic mobility in the Great Lakes region. Previously, she served as executive vice president of the Robert Wood Johnson Foundation, where she led programming that addressed systemic barriers to health.

Julie Morita, CEO of the Joyce Foundation

In her nearly two decades of service with the 海角直播Department of Public Health, including serving as commissioner from 2015 to 2019, she led the implementation of Healthy 海角直播2.0, a four-year plan focused on achieving health equity by addressing the conditions in which people live, learn, and work.

Born and raised in Chicago, Dr. Morita is a lifelong advocate for justice, deeply influenced by the experience of her parents, who were detained in Japanese American internment camps during World War II. She has served as an advisor to the White House, the CDC, and the National Academy of Medicine, and earned her medical degree from the University of Illinois Chicago鈥檚 College of Medicine.

鈥淚 have spent my career working to dismantle systemic barriers so that families and communities can thrive, and education is a fundamental pillar of that work,鈥� said Dr. Morita. 鈥淚 have long admired The 海角直播鈥檚 data-driven approach and its unwavering belief in the power of school leadership. As a 海角直播native, I look forward to working with the Board to ensure that our principals have the resources and support they need to help every student reach their full potential.鈥�

About The 海角直播

The 海角直播 (The Fund) is a nonprofit organization that improves Chicago鈥檚 public schools by investing in the talented educators who lead them. The Fund is celebrating its 25th anniversary in 2025, underscoring its enduring commitment to collaborating with partners across Chicago鈥檚 education sector to redefine school leadership in the city.

Media Contact

Brooke Rayford
Senior Manager of Communications
brayford@thefundchicago.org
The 海角直播

CHICAGO 鈥� The 海角直播 (The Fund) recently announced the promotion of Mariel Laureano from senior director of educator supports to chief, innovation and continuous improvement. In this newly elevated role, Laureano will lead The Fund鈥檚 strategy to design, test, and scale innovative solutions that strengthen school leadership and improve student outcomes across the city.

鈥淢ariel is a builder, a listener, and a relentless problem-solver,鈥� said Dr. Heather Y. Anchini, The Fund鈥檚 president and CEO. 鈥淪he brings a rare combination of classroom insight, system-level experience, and operational discipline. As chief, innovation and continuous improvement, she will help The Fund and our partners move faster from promising ideas to measurable impact for Chicago鈥檚 students.鈥�

During her tenure as senior director of educator supports, Laureano led cross-partner initiatives that expanded access to high-quality professional learning for school leaders and their teams, improved data use in schools, and streamlined the process of surfacing and sharing promising practices across the city.

鈥淚鈥檓 honored to serve Chicago鈥檚 educators in this new role and this next chapter,鈥� said Laureano. 鈥淥ur schools are full of creativity and urgency. My goal is to co-design with leaders and partners, test what works, and scale it. As always, our decisions will remain student-centered and continue to be guided by data.鈥�

Mariel Laureano, chief, innovation and continuous improvement, 2025

In her new role, Laureano will:

• Drive innovation pipelines that identify school- and network-level challenges and rapidly prototype solutions with practitioners.
• Strengthen continuous improvement systems to ensure that insights from pilots are translated into sustained, citywide practices.
• Deepen partnerships with 海角直播, charter and network partners, philanthropy, and community organizations to align resources to what works.
• Elevate educator voice to ensure the perspectives of principals, teachers, and students shape strategy from design through implementation.

About The 海角直播

The 海角直播 (鈥淭he Fund鈥�) is a nonprofit organization that accelerates student learning in 海角直播by investing in strong school leadership. In partnership with Chicago鈥檚 public schools and community, The Fund designs, tests, and scales solutions that help principals and their teams create the schools that students deserve. Learn more at thefundchicago.org.

Media Contact

Brooke Rayford
Senior Manager of Communications
brayford@thefundchicago.org
The 海角直播

Editor鈥檚 Note: This announcement is effective November 12, 2025. Quotes and descriptors can be customized with additional biographical details or partner acknowledgments upon request.

This year, The Fund will invest $2.2 million to support the growth of more than 400 current and aspiring principals across Chicago. These leaders are the backbone of Chicago鈥檚 schools 鈥� and the organization鈥檚 belief in them is rooted in both data and experience: Behind every great public school is a strong school leadership team.

鈥淪upporting school leaders is at the heart of what The Fund does, and it鈥檚 more important than ever,鈥� said CEO Dr. Heather Y. Anichini. 鈥淧rincipals and assistant principals have provided stability through years of disruption 鈥� from a pandemic to today鈥檚 rapid changes in education. Now is the time for bold investment in the leadership our schools and our city need.鈥�

The Fund鈥檚 programming offers Chicago鈥檚 principals and aspiring leaders the professional development, coaching, and peer networks they need to thrive, at no cost to them or their schools. These opportunities are designed with educators, for educators, and reach leaders who serve more than half of Chicago鈥檚 public school students.

For leaders like Principal Marie Garza of Albany Park Multicultural Academy, the impact is both professional and personal: 鈥淭he Fund has been an invaluable resource and partner in my development as a school leader. Their programs have both helped me grow and given me opportunities to share my experience with colleagues across the city.鈥�

The Fund鈥檚 programming is informed by its annual Principal and Assistant Principal Engagement Surveys, which it conducts in partnership with 海角直播 and the National Business Research Institute. The surveys gauge school leaders’ experiences during the previous year, helping to understand the needs of principals and assistant principals citywide.

鈥淧rincipals have an outsized impact on student achievement,鈥� said Anichini. 鈥淲e鈥檙e proud to partner with 海角直播 and so many others across 海角直播to ensure the educators who lead our schools have the support and autonomy they need to provide the learning experiences every student deserves.鈥�

As 海角直播faces a pivotal moment in public education, The Fund is living its belief out loud: strong schools start with strong principals, and investing in those leaders is the surest path to joyful communities of learning for students and their families.

###

About The 海角直播

The 海角直播 (The Fund) is a nonprofit organization that improves Chicago鈥檚 public schools by investing in the talented educators who lead them. The Fund is celebrating its 25th anniversary in 2025, underscoring its enduring commitment to collaborating with partners across Chicago鈥檚 education sector to redefine school leadership in the city.

Media Contact
Zach Jacobs
zjacobs@thefundchicago.org

Jump to the Full Memo

海角直播 (CPS) faces a projected $734 million deficit for fiscal year 2026. This is a significantly larger deficit than the $229 million shortfall that informed the school-level budgets principals built and Local School Councils approved earlier this summer. By state law, the 海角直播Board of Education must pass a balanced budget by August 30. This memo considers four strategies for closing the budget deficit before that deadline.

1. Close the deficit with cuts.

Cost reduction is necessary based on the deficit’s size and the budget’s structure, but options that avoid school-level cuts are limited this late in the planning cycle. Through July, CPS identified about $165 million in savings through reductions to central office staff and services. Closing the remaining $550+ million gap primarily through cuts would significantly affect students鈥� learning experiences. Other central cuts options are possible but limited and likely insufficient, including additional staff reductions. For example, moving to 2019 central-office staffing levels and limiting centralized discretionary spending could save another $60 to $70 million, but would reduce services to schools. Furlough days, which have been used in the past, could also reduce the gap. Each potential furlough day saves the system about $15 million. This option would require collaboration with the district鈥檚 labor unions.

If schools absorbed the full cost of cuts, the system could lose over 900 teacher positions and $179 million in discretionary spending, equivalent to cutting more than 1,400 teachers and other staff.

The public strongly opposes this approach: Only 26% of voters (22% of parents) support reducing school budgets. Principals already report that budgets are strained, too. About half say budget changes, limited resources, and facility challenges are already significant burdens.

2. Use borrowing to close the gap.

Borrowing would postpone painful choices and could provide a bridge to more permanent solutions. However, tough choices will eventually have to be made, and borrowing could heighten CPS鈥檚 long-term financial risk.

CPS already holds $9 billion in bond debt, pays $817 million in annual interest, and has a credit rating below investment grade. The district鈥檚 last round of operational borrowing (2016 through 2018) still costs about $200 million annually. Additional borrowing risks a credit downgrade, making future borrowing of any kind more expensive. Capital borrowing remains an urgent need, considering the district鈥檚 aging buildings and its $14+ billion maintenance backlog.

Voters also recognize these risks: Only 8% support borrowing to close the gap.

3. Secure additional revenue from the city and/or state.

Like most districts statewide, CPS plans to raise its property tax levy to the legal cap. CPS is also assuming $300 million in tax increment financing (TIF) surplus revenue for 2026, and it will receive an additional $50 million in state funding. Still, the budget gap looms large. In the near term, the most practical option is more TIF surplus dollars, which the city has used before. In the long term, new revenue must come from collaborating with the city and state, and it may include legislative changes.

海角直播voters prefer additional state support over loans and more cuts: 53% favor new state revenue.听

4. Resolve the MEABF payment question.

The current deficit assumes a $175 million CPS payment to the city of 海角直播for costs related to the Municipal Employees Annuity and Benefit Fund (MEABF). CPS is not legally obligated to make this payment and did not do so for nearly a century. It only contributed between 2020 and 2023, when federal COVID-19 funds were available. With those one-time funds gone, continuing to assume this cost would force deeper cuts or new borrowing if not paired with offsetting revenue.

Public support for an MEABF payment is weak: Only 25% of voters think CPS should take on this payment. CPS and the city could work toward a long-term, jointly beneficial solution 鈥� potentially with state participation 鈥� that does not immediately burden school budgets.

The Bottom Line

Despite the challenges, there is broad agreement on two fundamental points:听

• In the long term, CPS needs a coordinated, sustainable revenue strategy to fix its structural budget deficit, address pension cost inequities, and stabilize the district鈥檚 finances to serve student needs.听
• In the near term, the least disruptive path for young people starts with avoiding additional school cuts in fiscal year 2026.听

With those assumptions in mind, the most fiscally responsible path for 2026 likely includes no operational borrowing, declining the optional MEABF payment unless offsetting revenue is identified, and securing additional city dollars through an increased TIF surplus. Arriving at the right balance within this context will require continued collaboration across the district, city, and state.

Introduction

As 海角直播 (CPS) faces a projected operating deficit for the 2026 fiscal year (FY26), city and district leaders are weighing high-stakes budget decisions. Years of compounding cost pressures 鈥� from inflation and labor agreements to pension costs and the expiration of federal funds related to the COVID-19 pandemic 鈥� have created structural gaps in CPS鈥� finances. The question now is not whether to act, but how.

What makes this moment especially urgent is the status of school-level budgets. In May, CPS distributed funding allocations to principals based on a working deficit of $229 million. Certainly, principals and community members understood that there were likely additional cost demands. However, principals have submitted those budgets, and Local School Councils (LSCs) have already approved them. These budgets are now built into school-year 2025-26 (SY25-26) planning. Reopening them at this point, just weeks before the start of school, would be disruptive and unprecedented.听

We now know that CPS faces a total deficit of $734 million for FY26. That represents a $505 million gap compared to the $229 million deficit principals worked within earlier this summer. That gap comes from changes in assumptions about revenue and expenditures:

Revenue Assumptions

• $300 million less in assumed additional state and/or local funds (since such revenue isn鈥檛 committed at this point)

Cost Assumptions

• $175 million in additional costs to reimburse the city of 海角直播for the Municipal Employees Annuity Benefit Fund (MEABF) for FY26
• $30 million in additional costs to transition five schools from the Acero charter network to CPS management

Through July, CPS had identified about $165 million in cost savings, leaving a gap of $569 million. CPS also received around $50 million in additional state funding, narrowing the gap further. By state law, the 海角直播Board of Education must approve a balanced annual budget by August 30, 2025. The vote requires a majority of the 20 members to pass, with the board president breaking a tie.听

This memo outlines four scenarios that have emerged in public debate and private discussions, and that were discussed at a series of five CPS community feedback sessions in July:

1. Close the deficit with cuts.
2. Use borrowing to close the budget gap.
3. Secure additional revenue from the city or state.
4. Resolve the question of the MEABF payment.

While each has trade-offs, this document aims to provide context and analysis of their implications for CPS鈥� financial future and the start of the upcoming school year.

Scenario 1: Close the deficit with cuts.

Under this scenario, CPS would cut up to an additional $569 million, which would severely impact school budgets and the student experience.

Cutting school staff and resources to balance the budget would be devastating. To reach $300 million in cuts, the average school could lose:

• 听2 allocated teacher positions (8% of staff)
• 听$366,000 (67%) in discretionary funds, equivalent to more than two teachers or other staff

Across the district, schools could lose 903 teacher positions and $179 million in discretionary funding, equivalent to cutting more than 1,400 teachers and other staff. No school in CPS can bear these reductions without significantly impacting students.

Principals already note the strain their budgets are under, even before any such catastrophic cuts. In :

• 19% of principals state that more financial resources for their school would improve their impact as a principal (ranked second out of eight options), an increase from 13% in 2024.
• 53% of principals state that budget changes, 48% state that limited resources, and 47% state that facilities and supply challenges significantly impact their school communities (second, third, and fourth out of 20 possible options).

Such cuts are also extremely unpopular with the public at large. According to an April 2025 poll, only 26% of 海角直播voters (and 22% of parents) support reducing school budgets.

CPS鈥� current FY26 budget cuts have already affected facilities, food service, academic support, and transportation. More cuts of this magnitude could have serious negative consequences for students.

The district could make other cuts as well. CPS could further reduce the number of staff in its central office. For example, cutting back to its 2019 staffing levels and reducing centralized discretionary spending might save another $60 to $70 million, but this would also further reduce services to schools.

The district could also use furlough days as it has in the past, which would reduce the gap more. Each furlough day saves the system about $15 million, and there are seven days without student attendance built into the calendar that could be used. Of course, this would also require a partnership with the labor unions representing school leaders, teachers, and other staff. Overall, it would be difficult to fully close the deficit through cuts alone.听

Scenario 2: Use borrowing to close a budget gap.

Given the obvious risks from school budget cuts, many have asked whether CPS can borrow its way out of this crisis. But borrowing is not a long-term solution. It may delay the pain, but it won鈥檛 prevent it.听

Voters understand this: Just 8% of 海角直播voters support borrowing to close a CPS budget gap.

Aversion to borrowing is well founded, given that a large share of the current CPS deficit is due to debt service costs from previous borrowing.听

CPS currently holds $9 billion in bond debt and pays $817 million in interest yearly. Its credit rating remains below investment grade. It last borrowed to cover operational gaps from 2016 through 2018. Those loan payments currently cost the district $200 million annually. Any borrowing to cover operational needs may lead to a further credit rating downgrade, making future loans even more expensive.

If CPS chooses to borrow and receives a downgrade, it will pay three times:

• First, through the interest costs of the new debt.
• Second, through the forgone savings for debt refinancing of previous higher-interest debt.
• Third, through incurring higher interest costs for future debt that it must issue in coming years to make needed capital repairs. The average facility in CPS is over 85 years old, and the maintenance backlog is over $14 billion. These repairs must be covered by taking out more loans, which would become even more expensive, allowing for less capital improvement.

Given these dynamics, borrowing to cover a budget gap is extremely risky, and it gets riskier as the amount of borrowing increases.

Scenario 3: Secure additional revenue from the city and/or state.

CPS’ revenue generation is very limited. Over 50% of its revenue comes from property taxes. However, CPS can only increase taxes to the rate of inflation or 5%, whichever is lower. All FY26 budget scenarios assume CPS increases its tax levy to this maximum limit.

Thus, additional revenue must come from the city of 海角直播or the state of Illinois. Voters support additional revenue to close the gap: 53% prefer new state revenue, and 32% support additional city contributions.

Revenue from the city can come via tax increment financing (TIF) surplus funds. The city has declared TIF surpluses in past years, and CPS receives around 55% of any such surplus. Although the amount of funding CPS has received in TIF surpluses has dramatically increased over the past decade, from $62 million in 2015 to $300 million in 2025, there is an opportunity for even more TIF surplus funding in 2026.听

While CPS is already assuming $300 million in TIF surplus revenue, consistent with last year’s contribution, the mayor must declare a TIF surplus, including the already assumed amount, with a final budget approved by the 海角直播City Council before the end of December. That gives this path advantages over the other revenue options, which would take longer to realize. Recent reporting indicates the city of 海角直播faces a $1 billion budget shortfall, so it may be looking to additional TIF surpluses as an option.

The other revenue option is through the state of Illinois. State revenue accounts for around 28% of CPS revenue, and, according to the state鈥檚 evidence-based funding formula (EBF), CPS is only at 79% of its adequacy target. CPS, like most districts in the state, is underfunded.

At the same time, the state has many conflicting budget priorities. In May, it passed an increase in new funding for K-12 education of about $300 million. In addition, the state will not approve a new FY27 budget until May 2026. Securing additional funding for CPS requires action by the state legislature and the governor. Although a special session this summer or fall is possible, it is doubtful, given the state鈥檚 current financial outlook and a lack of motivation across the legislature to solely offer CPS emergency assistance. If the state does provide more funding, it would not likely occur until next spring, especially since no current bill is ready for the Illinois General Assembly to consider. For reference, some revenue solutions, like a progressive income tax, require a constitutional amendment, which failed in 2020.

Over time, state revenue options could include:

• Increase EBF funding for all districts in the state faster.
• Modifications to the EBF that increase funds sent to 海角直播and similar districts, through recognizing poverty concentration or modifying cost assumptions on special education.
• Increased state support for CPS teacher pension costs, perhaps through a graduated merger with the state system.
• Approval for increased local tax levies to support CPS beyond the current ones.

In this moment, additional revenue from the city through a TIF surplus is the only realistic option in the near term. While it does require political coordination and a shared strategy between CPS and the city, this scenario presents a path that minimizes disruption, preserves school programming, and honors the time already invested by school communities.

For more information on potential revenue sources, see the 鈥淧otential Revenue Options鈥� table at the end of this memo. Kids First 海角直播also published 鈥溾�� in July 2024.

Scenario 4: Resolve the question of the MEABF payment.

The $734 million deficit includes an assumption of a $175 million payment to the city of 海角直播for costs related to the Municipal Employees Annuity and Benefit Fund (MEABF). This pension system covers municipal employees, including CPS employees who are not certified educators. The district is not legally obligated to cover this cost and did not do so for nearly 100 years. It reimbursed the city from 2020 through 2023, with COVID-19 funds. Of course, those funds are no longer available, and making this payment now requires cuts elsewhere in the CPS budget or additional borrowing. As already noted, neither is an attractive option.

The public has signaled its disapproval politically: Just 25% of voters support CPS taking on this responsibility.

Working with the city to identify a long-term solution that meets both institutions鈥� needs may be possible. Perhaps the state could identify a new dedicated tax levy that the 海角直播Board of Education could raise, or the state could absorb the normal cost of pensions for CPS employees covered by the MEABF, as it does for CPS teachers. Such options would again require a coordinated effort over several months.

Ultimately, CPS is not legally required to make this payment, and doing so would require more revenue to avoid borrowing or additional cuts.

Key Considerations for Balancing the Budget

• Level of school cuts: Schools cannot bear additional budget cuts without profoundly impacting students and without significantly reworking their existing plans for SY25-26. School-level cuts would be disruptive in all contexts, though other efficiencies and savings may be possible.
• Borrowing: Successfully taking out more loans is never guaranteed, and adding debt now will create additional challenges later. Even if it is possible to close a gap in FY26, what happens in FY27, in FY28, or beyond?
• Additional revenue: The city of 海角直播can declare an additional TIF surplus, resulting in additional revenue for CPS. This requires the support of the mayor and City Council. The state legislature adjourned on May 31 and will not return until a six-day session in October. Its next full session begins in January 2026.
• MEABF: Given considerable financial pressures, including risks to school budgets, it is challenging for CPS to assume a $175 million payment that it is not required to make. At the same time, CPS and the city can work together to identify a sustainable solution.

While no path is without trade-offs, and all decisions have future consequences, avoiding significant school cuts offers the most direct route to preserving what matters most: continuity for students, predictability for educators, and trust between the district and the communities it serves.

Potential Revenue Options

Testimony Delivered to the 海角直播Board of Education on July 9, 2025

I鈥檓 Nelson Gerew, Chief Public Affairs Officer at The 海角直播.

Thank you all for your commitment to transparency during what interim CEO & Superintendent King has noted is an extraordinarily challenging budget season.

We know that CPS has already cut $230 million. These are real cuts with real consequences. Everyone in CPS, from crossing guards to central-office personnel, ultimately is supporting our students.

We also know that school leaders are being asked to do more with less. In our 2025 Principal Engagement Survey, principals noted that budget changes, limited resources, and facility and supply issues are having a significant impact on their school communities.

Now we鈥檝e learned that the district faces a total gap of $734 million 鈥� $500 million beyond the $230 already cut. If that gap isn鈥檛 closed, the resulting cuts could be catastrophic: thousands of educator positions lost, class sizes rising, and academic progress potentially stalling out.

In that context, some have already asked whether CPS can borrow its way out of this crisis. But borrowing is not a solution. It may delay the pain, but it cannot prevent it. Voters understand this 鈥� polling shows fewer than 10% support borrowing to close the CPS gap. This feeling is well-founded because part of our current budget gap is caused from interest costs from previous borrowing to cover gaps earlier this decade.

During this budget process, we urge the board, CPS leadership, and the city to work together and continue to protect what matters most: our students. That means finding new sustainable revenue, preventing additional cuts to schools, and ensuring every school can deliver on the promise of a high-quality public education, now and in the future.

Thank you.

Jun 25, 2025

After eight years of financial stability, partly provided through federal COVID-19 funding, 海角直播 (CPS) faces a deficit for the first time since 2017.听

While the 海角直播Board of Education works to identify a long-term, sustainable solution, CPS principals and Local School Councils (LSCs) have already completed their plans as best they could for the upcoming school year.

Principals like me are responsible for aligning resources to school and community needs while working with their LSCs to approve local spending priorities. That takes work and time, even when budgets aren鈥檛 tight. As a former principal, our new interim CEO is as familiar with this process as anyone.

This year, budgets are both tight and uncertain. Principals received their school resource allocations from CPS on May 15 and submitted final spending plans on June 5. These 鈥渇lat鈥� budget estimates assumed an overall system deficit of $229 million, and a caution that the deficit could increase to $529 million, if the anticipated revenue of $300 million does not come through. Securing these funds for our schools, which would allow us to keep our current staffing allocations, is essential and should be a priority of CPS leadership and the 海角直播Board of Education.

In an already challenging environment, CPS leadership and the 海角直播Board of Education should focus on minimizing the short-term impact on students and maximizing the long-term financial stability of the system. Borrowing more money only contributes to a rockier financial future, which we鈥檝e seen examples of too many times.

I’m hopeful that CPS leadership and the board, along with the city, will work toward finalizing a budget that reflects the budgets we received in mid-May. In a recent poll commissioned by The 海角直播, voters overwhelmingly rejected cuts when asked how they鈥檇 prefer CPS address the budget shortfall. Instead, they called on city and state leaders to explore additional revenue first, from state and local sources, a view echoed most strongly by parents and Black voters. The message is clear: Do everything you can to find more revenue before making further cuts, including securing the additional revenue assumed in this budget.

If budget changes must be made, we need to know about these changes as soon as possible, and we need to leave decisions to those who know schools best: principals and their LSCs. Voters trust local decision-makers ahead of the central office, the Board of Education, or other elected officials. More than 75% of voters say principals, not CPS district staff, should control key school staffing and budget decisions. Across race, age, and region, Chicagoans want school-level leaders and elected local representatives to have the autonomy to do what鈥檚 right for their students.

Principals and LSCs around the city have been intentional and creative with the tight budgets they received this May, striving to sustain resources and positions that our kids need most. The school where I serve as principal has already doubled down on fundraising efforts to stay afloat while downsizing on non-student-facing positions and resources. Thanks to the hard work and dedication from our school community, we have been able to sustain the current momentum we have, benefiting the nearly 1,400 students at our school (almost 850 of whom live below the poverty line). Most schools, however, have limited opportunities to raise significant amounts of money on their own. If the anticipated revenue of $300 million does not come through, schools will be put in the difficult position of cutting people and resources that Chicago鈥檚 children need.

Let鈥檚 do everything possible to secure available revenue before we chip away at already-limited school resources. If tough trade-offs become necessary, let鈥檚 trust our principals and LSCs to lead and stand behind the tough decisions they must make.

Paul Riskus, Ed.D., started his educational career as a high school chemistry and physics teacher in Chicago鈥檚 Bronzeville neighborhood at Urban Prep High School. At Urban Prep, he also coached football and track, and became the Science Department chair. After spending his resident leadership year at Garcia High School, he served as the assistant principal at Chicago鈥檚 largest elementary school, Walt Disney Magnet School. He currently serves as Disney鈥檚 principal and is humbled and excited to be in this role. Riskus values the importance of investing in other leaders. He is a co-founder and volunteer of the nonprofit Teachers Supporting Teachers and has recently led several principal development opportunities through The Fund. Paul is a family and community partner, placing a high value on cultural and intellectual diversity while creating optimal postsecondary opportunities for all students. He has a shared approach to leadership that strives to empower school stakeholders to create a secure environment that dreams big, has high expectations for all, and offers support that makes success possible for everyone.

When Pedro began his tenure as CEO in 2021, following the height of the COVID-19 pandemic, school leader satisfaction was low, with only 54% of principals satisfied with their positions. School leaders believed their roles needed to become more sustainable. In response, CEO Martinez deepened the school district鈥檚 investment in its Department of Principal Quality, expanded its Office of Network Support, and established more robust, collaborative programming to grow teacher-principal trust, instructional leadership, and program coherence.听

As a result, principal satisfaction grew roughly 10 percentage points, the number of school leaders rated as strong or very strong by the University of 海角直播 increased by almost 25%, and principal retention rebounded from 86% to 89%.听

CEO Martinez understood that students at schools with strong leaders learn more.

We at The 海角直播 are deeply grateful to CEO Martinez for his service, student-centered leadership, and commitment to developing strong leaders across the city. As a CPS graduate and proud Chicagoan, his tenure leaves a meaningful legacy for students and communities citywide. His meaningful investment in the next generation of changemakers will continue shaping Chicago鈥檚 future for years to come.

We look forward to working with interim Superintendent/CEO Dr. Macquline King and her team as they finalize the district鈥檚 2026 budget and prepare to open schools in August.

As the 海角直播Board of Education and other decision-makers prepare for CPS鈥� next chapter, we encourage them to recognize the essential role school leaders play in the district’s success. Collaborating with and listening to principals directly impacts schools and the students they serve. As we have for more than two decades, we will continue to celebrate and encourage district leadership as they deepen Chicago鈥檚 commitment to strong leaders in every school.听

Testimony Delivered to the 海角直播Board of Education on June 11, 2025

President Harden, Vice President Bautista, and Board Members,

I鈥檓 Nelson Gerew, chief public affairs officer at The 海角直播.

Last week, school budgets were submitted by principals and approved by Local School Councils. Those budgets were based on a systemwide deficit of 229 million dollars, which in turn assumed 300 million dollars in new revenue. Consistent with The Fund鈥檚 long history of partnership with CPS 鈥� providing data and analysis to help leaders make decisions 鈥� we recently commissioned a citywide poll of more than 1,100 registered voters to understand their views on CPS鈥� budget and how decisions that impact schools should be made.

Based on their information and context, voters’ message could not be clearer: Chicagoans want new revenue to support our public schools. A majority, 53%, believe the state should provide more funding. Another third believe the city of 海角直播should contribute more. Voters support this board’s efforts to identify new sustainable revenue that prevents deficits and protects our schools.

At the same time, they strongly oppose actions by this board that would undermine CPS鈥� financial future. Only one in four support reimbursing the city for pension costs, and fewer than one in 10 support borrowing to close a budget gap. Voters understand the stakes, and they鈥檙e asking leaders to fund schools in a sustainable way.

Voters also want decisions to continue to be made by those closest to students. They trust local leadership to protect what matters most: the student experience.

We urge the board, along with CPS and city leaders, to act according to what is best for the district and what voters are telling us: Find new revenue, empower local leaders, and keep students at the center of every decision.

Thank you.