Chicago Public Schools (CPS) released its proposed budget for Fiscal Year 2016 (FY16). In all three expenditure categories that CPS can control – operating, capital and debt service – spending is down over last year. However, the district cannot cut its way out of the fiscal crisis and as a result, this budget relies on a partnership with leaders in Springfield to stabilize the district’s finances by ending years of pension inequity and declining state funding. If Springfield doesn’t reach a resolution during this legislative session, CPS will be forced to close the $500 million gap in its budget with a mix of additional cuts or more unsustainable borrowing.

The District begins the year with a $1.1 billion structural deficit. In addition to relying on $500 million from a comprehensive budget solution, CPS’ budget includes about $255 million in “scoop and toss” borrowing that prevents classroom cuts today, but puts a greater burden on future generations. The district’s budget also uses a combination of TIF surplus funds and raising property taxes to the cap. Finally, this budget includes $200 million in painful cuts that CPS announced earlier this summer. CPS has made nearly a billion dollars in cuts since 2011, and anticipates streamlining the Central Office further, but it is clear that the District cannot cut its way out of this crisis.

The proposed FY16 budget will be made available for public comment and review on Aug. 18 at three meetings around the city. The final budget is expected to be presented to the Board for a vote at its August meeting, which is scheduled for Aug. 26. For additional information on the FY16 budget, please see the attached fact sheet, background overview below or view the detailed District’s budget at: www.cps.edu/budget.