Board ratifies IGA with City tied to TIF surplus, authorizes contingent pension payment

The Chicago Board of Education on Oct. 30 ratified an intergovernmental agreement (EX2) with the City of Chicago that authorizes a contingent payment not to exceed $175,000,000 to the Municipal Employees Annuity and Benefit Fund if the board receives a 2025 TIF surplus exceeding $379,000,000 during calendar year 2026. The item was posted as draft and required a roll‑call vote; the board adopted the IGA unanimously (20 ayes, 0 nays).

During discussion, Member Blaise publicly thanked Mayor Brandon Johnson and city negotiators for proposing a record TIF surplus and framed the IGA as part of a partnership to help fill CPS’s budget gap (he referenced prior surplus figures and said the agreement would help cover a budget shortfall of roughly $379 million). Other board members emphasized that the agreement codified prior budget commitments made when the district passed its budget in August.

Member Lopez sought and received confirmation that the agreement applies for the current fiscal year only and that any reduction tied specifically to a shortfall in magnet school assistance funds would adjust the reimbursement to the city accordingly. Chief Carmona and other staff explained the contingency language and how the funds would be handled if surplus thresholds were not met.

The board’s adoption of the IGA clears a pathway for the district and the City to proceed under the budget assumptions discussed during recent hearings; board members who voiced concern said they did so while honoring prior commitments.

What’s next: With EX2 adopted, the agreed contingent payment becomes actionable only if the district receives the specified TIF surplus in 2026; the board recorded that the final IGA will be included in the agenda of action.