Monday, July 20 - 1st Budget Hearing

The Chicago Public Schools (CPS) held their first FY27 budget hearing on July 20, 2026, to discuss the proposed $9.88 billion budget for the 2026-2027 fiscal year. The hearing included extensive public participation, with educators, union representatives, and community members expressing deep concerns about significant budget shortfalls, proposed layoffs of nearly 1,600 staff including many special education teachers, and cuts to critical programs such as libraries and extracurricular activities. The district faces a $732 million deficit and is relying on short-term borrowing, including tax anticipation notes (TANs), to maintain cash flow and payroll. Board members and CPS leadership discussed the challenges of delayed property tax revenues from Cook County, the need for additional state funding, and the importance of passing the budget by July 30 to secure borrowing authority and avoid payroll disruptions. The budget presentation emphasized maintaining investments in student safety, academic instruction, and equity-focused funding models despite the cuts. Several board members highlighted the urgency of advocating for a special legislative session to secure full funding and expressed concerns about the assumptions regarding anticipated tax increment financing (TIF) surplus revenue. The hearing concluded with a commitment to continue pursuing additional revenue streams and community engagement to address the district's financial challenges.