CPS officials present FY25 amended budget that adds $139M in TIF surplus; board and advocates spar over pension reimbursement and contract funding

Chicago Public Schools on March 13 presented an FY25 amended budget that adds $139 million in TIF surplus to the district’s operating plan and would give the Chicago Board of Education flexibility to apply that money toward pending collective bargaining agreements or a city reimbursement tied to the Municipal Employees’ Annuity and Benefit Fund (MEABF).

The proposal, delivered by Mike Zukowski, chief budget officer for CPS, would increase the district’s operating budget from $8.43 billion to $8.57 billion and use the $139 million remaining from a $298 million TIF surplus the city allocated to CPS. The amendment was described as providing the board optionality to fund (1) the pending Chicago Teachers Union agreement, (2) a principals-and-administrators agreement, or (3) an intergovernmental agreement (IGA) to reimburse the city for part of MEABF costs.

Why it matters: board members and union representatives said the board must decide whether the limited funds should go directly to school staffing and contract settlements or to the city to reimburse past pension payments. Board members pressed staff on legal and fiscal constraints; union and community speakers warned that withholding funds from bargaining could lead to a strike or severe classroom impacts.

Zukowski opened the staff presentation by reviewing the FY25 baseline: a total approved budget of roughly $9.9 billion, with $8.3 billion for operating, $611 million for capital and $817 million for debt service. He said the city’s December budget included $298 million in TIF surplus for CPS — $159 million of which was already included in the…