The Chicago Board of Education approved a $9.96 billion budget for the 2026-27 school year on Thursday, amid ongoing uncertainty over state funding and concerns about potential midyear cuts. The budget, which passed by an 11-7 vote, includes an amendment that assumes $150 million in additional state revenue to restore some school-level cuts, including the reversal of planned layoffs. However, whether this funding will be forthcoming remains unclear.

The original budget sought to address a $730 million deficit through the elimination of 760 teaching positions, department reductions, and a midyear spending freeze. The recently adopted amendment removes the spending freeze and calls for the restoration of some staff, but relies on $100 million from the state’s Evidence-Based Funding formula and another $50 million from mandated grants for programs such as transportation and special education. The Evidence-Based Funding formula is designed to allocate state aid based on student needs, but Chicago Public Schools (CPS) is currently only 73% funded under this system, down from 81% last year.

CPS Chief Executive Officer Macquline King cautioned that relying on unconfirmed state funds could leave the district vulnerable to midyear cuts if the money does not materialize, and noted that lenders may react negatively to budget projections that include unguaranteed revenue. Chief Budget Officer Emila Zoko echoed these concerns, warning that the amended budget may not meet the state law requirement to be balanced and highlighting the lack of precedent for additional funding allocations from Springfield. CPS officials have also expressed worries that credit ratings could be downgraded, resulting in higher borrowing costs.

State lawmakers have offered mixed signals on the potential for supplemental funding. Illinois House Speaker Emanuel “Chris” Welch indicated support for efforts to pass a supplemental funding bill, although specifics on the source of funds remain unclear. Fifteen legislators from Chicago and suburban districts wrote letters in support of supplemental appropriations. CPS board members aligned with the Chicago Teachers Union (CTU) argued that counting on additional state revenue would pressure the state to address historical underfunding, which union leaders say has forced the district to absorb deep cuts on its own.

CTU President Stacy Davis Gates called on Governor JB Pritzker to resolve funding shortfalls, emphasizing that CPS should not be expected to balance its budget without adequate state support. Several school board members echoed this sentiment, noting that the district faces ongoing structural challenges, including billions in long-term debt, an aging infrastructure with extensive repair needs, and rising operating costs amid the expiration of federal pandemic relief funds.

Some board members opposed the amended budget, citing the risks of relying on uncertain state revenue and warning that if additional funds fail to arrive, the district may need to implement deeper cuts later in the year, potentially doubling layoffs. SEIU Local 73 President Dian Palmer described the amendment as a “risky path,” stressing the uncertainty faced by service and support staff.

CPS has recently increased the projected revenue from tax increment financing (TIF) districts to $285 million, helping avoid employee furloughs earlier in the year. While some board members criticized the district’s confidence in TIF revenue, officials maintained that their projections are data-driven and that TIF funds are received annually when surpluses are declared.

The district is expected to start the school year on August 23 with the new budget in place, though financial uncertainties persist. Board members and union leaders alike have urged the state for a more stable, long-term funding solution to prevent recurring budget crises and protect classroom resources.