Chicago Public Schools presents FY26 budget that preserves school funding, ties city pension reimbursement to new revenues

Chicago Board of Education officials presented a balanced FY26 budget proposal Aug. 19 that they say protects school budgets and labor contracts while closing most of a $734 million shortfall, but conditions reimbursement to the city for municipal non‑teacher pensions on new state or local revenue. Mike Sadowski, Chief Budget Officer for Chicago Public Schools, told the board the district is proposing a $10.25 billion budget that "fully protects this level of school funding from the previous year."

The budget matters because CPS said failing to protect school funding would reverse recent gains and risk midyear cuts and layoffs. Sadowski said the proposal closes $165 million of earlier gaps and still requires $569 million in additional strategies to balance FY26; the package CPS brought forward includes $126 million in additional reductions away from classrooms, $149 million in added revenues, $29 million in accelerated debt‑refunding savings, $90 million in one‑time sources and a $175 million condition on making a municipal pension reimbursement.

CPS framed the plan as protecting students and staff while avoiding the kind of high‑cost borrowing and downgrades the district suffered…