Nonprofit suggests TIF funds, raising property taxes to cover deficit as CPS budget talks continue
Mayor Johnson said Tuesday he would not support any budget or teachers contract that includes cuts in the classroom
CHICAGO (WLS) -- As Chicago Public Schools faces a huge financial cliff, more suggestions are being offered to help the fourth-largest public school district in the country survive.
Tuesday's CPS back-to-school bash on the Southwest Side included popcorn, popsicles and backpacks. Students return to classes in less than a month.
ABC7 Chicago is now streaming 24/7. Click here to watch
"We've made significant investments, especially in staffing for teachers, and even when our enrollment has declined. I want to protect that," CPS CEO Pedro Martinez said.
But, protecting that will come with a huge cost, especially since COVID funds will no longer be available. Federal funds paid more than 9,000 new positions since 2019, even as enrollment dropped by nearly 40,000 students.
"About 70% of the deficit is going to be carried over to next fiscal year; that does not even include the CTU contract or the principals' contract," said Hal Woods, with Kids First Chicago.
The nonprofit Kids First Chicago released a report Tuesday, offering different long-term solutions, including using expired Tax Increment Financing funds, having the state pick teacher pension costs and raising property taxes to the legal limit.
SEE ALSO: Chicago Public Schools reveals plan for hub bus stop system amid driver shortage
"There is a mechanism through a public referendum where you can actually lift that limit, and CPS could raise property taxes to address its entire deficit," Woods said.
In the short term, CPS must figure out a way to pay for a new teachers contract, as negotiations between the Chicago Teachers Union and CPS continue.
"I think that what we could see in the short term, unfortunately, is probably more school-based cuts or other spending cuts, potentially at the central office level," Woods said.
COVID money helped pay a 60% increase of central office staff. Martinez said he has already cut enough to balance this year's budget
"In order for me to cut further, I got to cut out actual services. Because, whether it's our networks or central office, the services we provide, so that it saves money at the school level. Because otherwise, they have to buy it themselves," Martinez said.
Mayor Brandon Johnson said Tuesday he would not support any budget or teachers contract that includes cuts in the classroom.
Tuesday evening, another open negotiating session between CPS and CTU is scheduled.
