The Chicago Board of Education adopted a balanced fiscal year 2026 budget on Aug. 28 after a heated public meeting that included hours of testimony, legal questions about meeting procedure and a roll-call vote that passed the measure by 12–7 with one abstention. The budget, presented by interim Chief Executive Officer Dr. Magalene King, relies on an assumed city-declared tax-increment financing (TIF) surplus and delays a $175 million Municipal Employees’ Annuity and Benefit Fund pension payment that several speakers said is the city’s obligation under state law.
Board members and the superintendent emphasized the immediate goal of protecting classrooms and avoiding midyear cuts while urging advocacy for more state funding. “Passing a budget means protecting our schools from further cuts and unlocking the opportunity to focus fully on enhancing the quality of education throughout our city,” Dr. King said during her remarks.
The budget’s adoption came after procedural disputes earlier in the meeting over moving item RS 1 (the FY26 budget vote) in the agenda and a separate motion to end debate that failed to reach a two-thirds threshold. Dozens of union representatives, parents, principals and elected officials spoke during public participation, describing cuts already in effect and warning that the budget’s assumptions risk deeper reductions if anticipated revenues do not materialize.
Union and parent testimony focused on staffing cuts already experienced at schools: reductions to custodial staff, special education minutes, paraprofessionals, safe‑passage workers and athletics programs. SEIU Local 73 President Diane Palmer asked the board to adopt Dr. King’s budget and reject a high‑interest short‑term loan, urging protections for roughly 1,200 custodians affected by workforce changes.
Several elected officials — including Ald. Andre Vasquez, State Sen. Javier Cervantes and State Sen. Willie Preston — urged the board to approve the balanced budget that avoids a short‑term loan. They also called for continued pressure on Springfield for supplemental state funding. Other board members and some public speakers pressed for a different approach: either requiring CPS to pay the pension obligation now or securing firmer commitments from the city to guarantee the TIF surplus the budget assumes.
Board action and vote: The board moved and then voted to adopt RS 1, the FY26 budget resolution. The roll call recorded individual votes (aye/no/abstain) and resulted in adoption. The board also adopted related procedural and administrative items tied to budget implementation and adjourned after passing several reports.
Why it matters: CPS faces a structural funding gap. The FY26 vote preserves current allocations and avoids an immediate loan, but it relies on projected revenues the city has not yet formally allocated. If those revenues fall short, the district may need to return to the board to consider borrowing or midyear reductions.
What’s next: Board members and district leaders said they would keep advocating in Springfield and City Hall for additional revenue and monitor the city’s TIF declaration. Dr. King said staff will continue implementing the budget and communicate with families, while many public speakers called for continued oversight and protections for displaced workers.