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CPS treasurer warns of more than $700M shortfall; board asked to authorize levy and tax anticipation notes
Summary
District treasurer Wally Stock told the board the FY27 operating budget faces a deficit in excess of $700 million. He recommended a property tax levy request (~$4.289B) and authorization to issue up to $1.65B in tax anticipation notes to bridge cash-flow delays tied to Cook County distributions.
Chicago Public Schools’ acting chief financial officer and treasurer Wally Stock told the agenda review committee on July 8 that the district faces "a deficit in excess of $700,000,000" as it prepares the FY27 budget.
Stock outlined the high-level budget picture: an operating budget around $8.5 billion (excluding debt service), debt service of roughly $900 million and a capital program of approximately $600 million. The district is proposing a property tax levy of about $4.289 billion for FY27, comprised of an education levy, teacher pension levy ($652M noted), and other components. He also asked the board to authorize tax anticipation notes (TANS) with a maximum principal not to exceed $1.65 billion to manage cash-flow risks created by Cook County property-tax distribution delays that could push the August distribution into October.
"We are facing significant cash flow pressures driven by the ongoing Cook County property tax distribution delays," Stock said. He described prior years of borrowing related to tax delays and estimated additional borrowing costs this year could include roughly $10 million so far, and historically about $82–$83 million since 2020 related to delayed collections.
Board members asked detailed questions about the levy assumptions, the magnitude of debt service going forward, the status of spring tax receipts, and the implications for school positions including assistant principals and classroom staff. Members pressed for more transparent estimates of the number of positions affected and requested a fuller breakdown of where proposed reductions would fall. The superintendent said the district added $5 million to the appeals budget and will follow up with school-specific impacts.
Stock said some revenue assumptions (for example, expected TIF receipts from the city) remain fluid and that the district would provide full budget documents to board members prior to public release (targeting July 15) and public hearings in the week of July 20. He warned that delays at the county have significantly reduced expected collections and that the district continues to pursue discussions with Cook County and the city to mitigate the shortfall.
The committee reviewed related items on the agenda including the FY27 operating and capital budget presentations, property-tax levy resolution, and the TANS authorization. Board members emphasized both the need to protect classroom resources and the political work required in Springfield and City Hall to pursue additional revenue.
