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Board adopts FY27 budget after contentious vote, adding $150M state revenue assumption
Summary
The Chicago Board of Education on July 30 adopted a revised FY27 budget after approving an amendment that increased the board's projected state revenue by $150 million, rescinded proposed furlough days and restored funding to prevent some layoffs. The vote on the amended budget was 11–7–1.
The Chicago Board of Education adopted its fiscal year 2027 budget on July 30 after a heated debate over revenue assumptions and staffing cuts. Members voted 11–7–1 to approve an amendment increasing the board’s state funding assumption by $150 million (a $50 million increase in mandated categorical grants and $100 million in evidence-based funding) and rescinding the district’s previously proposed furlough days. The full budget with amendment passed on the same tally.
Superintendent Dr. Macklin King urged the board to pass a balanced budget during her remarks, saying the district faced “serious financial challenges” driven by declining enrollment and delayed local property tax receipts and that an approved budget was necessary to secure short-term financing for payroll. “With school staff reporting to work in less than three weeks, we need access to short-term financing in order to make payroll,” Dr. King said. Acting Chief Budget Officer Emmy Lazoko and Acting CFO Wally Stock told members the proposal includes $9.96 billion across capital, debt, and operating funds and $330 million in structural deficit reduction while relying on a $285 million TIF-surplus assumption.
Board debate split along two lines: members who argued the amendment used available political openings to protect classrooms and avoid permanent layoffs, and members who warned it relied on revenue not yet authorized and risked violating the Illinois school code requirements for balanced budgets. Legal counsel reminded the board that the school code requires budgets to be based on “information known to the board at the time,” and cautioned that relying on unsecured revenue could expose the district to midyear cuts or other penalties.
Union and community leaders who testified earlier in the meeting pressed the board to adopt the revised budget to avoid furloughs and preserve positions. Diane Palmer, president of SEIU Local 73, praised the elimination of furlough days and urged the board to “pass the revised budget exactly as it stands.” At the same time, some board members said they expect continued advocacy with Springfield and the mayor’s office to secure durable revenue and address the district’s long-term structural funding gap.
The board also adopted related fiscal measures separately: the FY27 capital improvement plan and the property tax levy passed unanimously, and the board authorized up to $1.65 billion in tax anticipation notes to meet short-term cash needs. Board members said they will continue pursuing state and city solutions while monitoring cash-flow and implementation risks.
The district said staff return on Aug. 17 and the first payroll is scheduled Sept. 4; finance staff told the board that short-term financing would need to close by early September to ensure payroll is funded on schedule.
