Chicago Public Schools plans to lay off 760 teachers, 801 teacher aides, and 162 central office employees while imposing five unpaid furlough days for all staff to address a $732 million deficit in the district’s $9.88 billion proposed budget for the 2026-27 school year. The Chicago Teachers Union called the spending plan “dead on arrival” and has demanded impact bargaining over the staffing reductions, setting up a confrontation that could shape the district’s fiscal direction heading into a July 30 Board of Education vote.
Key Takeaways
- Chicago Public Schools proposes laying off 760 teachers, 801 teacher aides, and 162 central and citywide employees, totaling 1,723 positions, as part of a $9.88 billion budget for fiscal year 2027
- Five furlough days scheduled for non-attendance days in the second semester would save approximately $85 million; for the average teacher, the furloughs translate to roughly $2,300 in lost pay, or about 2.3% of annual salary
- The Chicago Teachers Union called the budget “dead on arrival” and has filed two demand letters requiring CPS to bargain over cuts and pursue revenue the union says the district is owed before eliminating positions
- The budget relies on $200 million in Tax Increment Financing surplus funds from the City Council and assumes additional state funding; CPS CEO Macquline King said the plan does not add to the district’s roughly $9 billion in existing debt
- CTU President Stacy Davis Gates framed the deficit as a product of state underfunding, arguing the Illinois General Assembly owes Chicago Public Schools $2 billion under the state’s evidence-based funding formula
What Does The CPS Budget Proposal Include?
Chicago Public Schools CEO Macquline King unveiled the proposed $9.88 billion budget on July 15, describing a plan built around declining enrollment, rising costs, and a structural revenue gap that the district has confronted in some form every summer for the past several years. The 760 teacher layoffs stem in part from a decision announced to principals in May to raise student-to-teacher ratios across the district, a move that a WBEZ analysis projected would eliminate approximately 700 teaching positions. Additional cuts reflect enrollment declines and reduced special education service needs at individual schools.
The 801 teacher aide layoffs and 162 central office reductions bring the total to 1,723 positions eliminated. The district also plans a midyear spending freeze beginning in the second semester and five furlough days on non-attendance days, such as teacher training sessions and report card pickup days. CPS has not furloughed staff in a decade, and district officials characterized the furloughs as a temporary measure that could be reversed if additional revenue materializes from the city, state, or federal government.
King said the district took a $450 million bite out of the $732.5 million deficit through the layoffs, revenue pushes, and other cost-saving measures before releasing the proposed budget. The plan does not add to the district’s approximately $9 billion in outstanding debt, King said, but does depend on $200 million in Tax Increment Financing surplus funding from the City Council, a request that would require alderpersons to declare a TIF surplus next year.
How Is The Chicago Teachers Union Responding?
The Chicago Teachers Union issued a statement on July 15 calling the proposed budget “dead on arrival” and describing the layoff cycle as a recurring consequence of structural underfunding that the district has failed to address at the state level. CTU President Stacy Davis Gates rejected the plan in direct terms, stating that students have already spent the school year in overcrowded classes with unpaid coaches and overburdened caseworkers.
The union filed two demand letters requiring CPS to engage in impact bargaining over the staffing cuts and to pursue funding sources the union argues the district is owed before reducing positions that serve the district’s more than 300,000 students. CTU leadership framed the deficit as a product of Illinois Governor JB Pritzker and the General Assembly failing to meet the state’s own evidence-based funding mandate, which the union says leaves CPS approximately $2 billion short of full funding.
The CTU also secured a victory at the Cook County level during the same week. On July 15, the Cook County Board’s Finance Committee voted to include CPS in a bridge loan program that the county has offered to suburban school districts but had previously excluded the city’s schools from. The union argued that Cook County’s property tax distribution delays cost CPS an estimated $40 million in unnecessary borrowing last year, with the district paying as much as $220,000 per day in interest at one point. CTU leadership called the Finance Committee vote “an enormous step forward” and demanded that Cook County Treasurer Maria Pappas follow through by distributing $400 million in property tax payments the union says have been collected but not yet forwarded to the district.
What Happens To Laid-Off Teachers?
CPS Chief of Talent Ben Felton noted that the overall number of aides and teachers in the district is actually increasing, driven largely by rising special education needs. The district is adding approximately 900 special education teachers and classroom assistants even as it eliminates general education positions. District officials said most laid-off staff historically get rehired by CPS as positions open through retirements and resignations over the summer.
The CTU contract includes layoff protections in the form of retention pools, including a Reassigned Teacher Pool for tenured teachers and a central retention system for class-size teacher assistants. The union scheduled a layoff rights clinic for July 21 to advise affected members on their options, including unemployment benefits, health insurance continuation through August 31, and contractual protections against improper termination.
What Are The Broader Fiscal Pressures On CPS?
The $732 million deficit reflects several compounding factors: declining student enrollment, rising labor contract costs, employee pension obligations, building maintenance expenses, and the district’s $9 billion debt load. CPS enrollment has been falling for years, reducing the per-pupil funding the district receives from the state, while fixed costs have continued to climb.
The Chalkbeat Chicago analysis of the budget noted that the district’s chief financial officer described the furloughs as a reasonable but temporary solution, since those savings will not reduce the deficit in future fiscal years. Without structural revenue changes at the state or county level, CPS faces the prospect of repeating the same budget cycle annually.
The CTU pointed to the Illinois General Assembly’s most recent legislative session, in which lawmakers left approximately $4 billion in proposed revenue measures on the table, and called for a special session to address school funding. The union argued that the state is treating stadium projects and tech industry incentives as megaprojects while asking teachers and students to absorb the consequences of underfunded schools.
The Chicago Board of Education is scheduled to vote on the proposed budget at its July 30 meeting, where CTU leadership has urged members and community supporters to attend and speak against the spending plan.
FAQs
How many CPS employees are facing layoffs?
Chicago Public Schools proposes laying off 1,723 employees total: 760 teachers, 801 teacher aides, and 162 central office and citywide staff. District officials said many laid-off employees historically get rehired into other CPS positions before the school year begins.
What are the proposed furlough days?
CPS plans to furlough all staff for five days during the second semester on non-attendance days, such as teacher training sessions and report card pickup days. The furloughs would save approximately $85 million and translate to roughly $2,300 in lost pay for the average teacher.
Why does CPS have a $732 million deficit?
The deficit stems from declining student enrollment, rising labor contract and pension costs, building maintenance expenses, the district’s $9 billion debt, and what the CTU describes as approximately $2 billion in state underfunding under the evidence-based funding formula.
What is the CTU’s position on the budget?
The Chicago Teachers Union called the proposed budget “dead on arrival” and filed two demand letters requiring CPS to bargain over staffing cuts. CTU President Stacy Davis Gates argued the district should pursue additional state and county revenue before eliminating teaching positions.
When will the CPS Board vote on the budget?
The Chicago Board of Education is scheduled to consider the proposed budget at its July 30 meeting. CPS is required by law to hold two public hearings before a vote can be taken, and the budget must be approved by the end of August.
What is the TIF surplus request?
CPS is counting on $200 million in Tax Increment Financing surplus funds from the City of Chicago. The request would require the City Council to declare a TIF surplus for the coming year, a step that is not guaranteed.
