News Chicago Public Schools interim CEO States Budget Deficit Underreported by More Than $200M Reaching $734M

CPS interim CEO reveals shocking jump in deficit as real amount revealed; pressure mounts to avoid devastating cuts

Natalie C. Frank, Ph.D. June 27, 2025

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CHICAGO — The financial challenges facing Chicago Public Schools are more severe than initially reported. During a school board meeting on Thursday, interim CEO Macqueline King announced that the district is now facing a staggering $734 million budget shortfall. This comes as a important jump from the previously disclosed estimate of $529 million, with King explaining that most of this increase is due to an unexpected $175 million payment owed to a city-managed pension fund that covers part of CPS employees' pensions.

Right now, CPS hasn't finalized its budget, which is usually prepared by this point in the year. Under current rules, the school board has 60 days to approve a final budget. Not reaching that deadline could mean drastic funding cuts, potentially impacting schools all across the city.

This growing deficit has also stirred up tensions with the Chicago Teachers Union. Union President Stacy Davis Gates has called on CPS to seek urgent financial support to avoid immediate staffing reductions or cuts in services.

“We need to act boldly and creatively,” she emphasized, urging the district to consider borrowing to bridge the financial gap. Davis Gates also urged the district to step up its advocacy with state officials, emphasizing Illinois’ education funding formula, which she claims would entitle CPS to roughly $1.2 billion more each year to reach minimum funding levels.

As lawmakers continue their budget discussions in Springfield, education advocates and city leaders are closely watching the situation. The future of the third-largest school district in the country essentially depends on whether state legislators approve a important boost in funding or leave CPS to handle this crisis on its own.