The sources said Mayor Johnson asked Martinez to resign Thursday night.
Both men were set to attend a gala for the City Council's Latino Caucus Friday night in Bridgeport, but that was before Friday's news broke. They were no-shows at an event that is typically a who's who of Chicago politics.
The CPS CEO wrote a letter to CPS families Friday, saying in part, "me and my leadership team are 100 percent focused on building on the positive momentum of the new school year," defying, what multiple sources tell ABC7 is, the mayor's call for his resignation, with only the school board able to fire him.
"They've supported the budget that he put forward and overwhelmingly supported it seven to zero," 36th Ward Ald. Gilbert Villegas said. "That's the board that Mayor Johnson had appointed."
Martinez, himself a CPS graduate, was hired by former Chicago Mayor Lori Lightfoot. His relationship with Mayor Johnson reportedly became strained after he refused to take out a short term high interest loan to help pay for a new teachers contract, which is still in contentious talks.
"Many folks will see this as a power play on the part of the mayor to get what he wants on behalf of the teachers union, fairly or not," ABC7 Political Analyst Laura Washington said.
Since CPS students returned to school, Johnson and Martinez have appeared at public events together. The two have appeared cordial, as rumors have swirled for weeks that the mayor is trying push Martinez out.
On Friday, sources confirmed the rumors.
Martinez and Johnson were both out and about earlier in the day Friday at separate events, yet there was no mention of Martinez's ouster. Martinez was all smiles on ABC7's morning show at Lane Tech High School, and there were no hints of resignation.
Chicago Teachers Union President Stacy Davis-Gates said she has urged Johnson to keep Martinez in the position.
As the CPS CEO tries to tune out the outside noise, the challenges he faces include paying for a new teachers contract and an expected $500 million budget deficit next school year.
Earlier this month, Martinez received more support from aldermen as he wrestles with how to pay for a new contract for teachers and deal with an internal power struggle, as well as new school board members being elected in November. They said now is not the time for CPS's chief to go.
"Trying to force the CEO out of his job in the middle of negotiations I think constitutes interference," 2nd Ward Ald. Brian Hopkins said. "This is the wrong thing to do. The mayor is making a serious error in judgment. He campaigned as a candidate and pledged not to interfere in contract negotiations... I think the CEO has had good relations with his board members up until now. By all accounts, he's done a very good job in a very difficult role."
Chicago City Council's Budget Committee Chairman Ald. Jason Ervin supports the removal of Martinez because the CEO passed a $175 million pension.
"This decision they made without any consultation with the city and with the council created this massive increase in shortfall we are facing," Ervin said. "I think there may be some philosophical differences. I mean, the mayor is the mayor of the City of Chicago, and the mayor does have the ability to make certain decisions."
A mayoral aide also cited an internal CPS report on school consolidations and closings as a breaking point.
"I think the mayor has a right to call a timeout, so that he can do what's necessary to make sure that our kids have the best educational experience," 6th Ward Ald. William Hall said.
ABC7 asked Martinez about the situation on Wednesday.
"I'm starting my fourth year, and I'll tell you, this is going to be our strongest year ever," Martinez said. "Our schools are feeling good our principals are feeling good so my focus is on the job."
Mayor Johnson's office issued the following statement Friday afternoon:
"We do not comment publicly on personnel matters. What we can say is that Mayor Johnson has a clear vision for public education that includes fully funded schools, access to the arts, athletics and special education resources, and a nurse and social worker in every building. We are committed to providing families a school district that gives every Chicagoan a world-class public school in their community."
Over 400 principals and assistant principals signed a letter of support for Martinez. Over 15 aldermen also did the same, including former Finance Committee Chairman Scott Waguespack.
"I signed it because I really just saw a lot of animosity and a lot of pushback on all the plans and policies that he's trying to push," said Waguespack, alderman for the 32nd Ward.
Waguespack said the animosity is coming from the Chicago Teachers Union, as teachers push for a new contract.
"I feel he has done a good job, certainly the principals like him," 38th Ward Ald. Nick Sposato said. "He has done the best under the circumstances... Can you imagine starting a nationwide search for his replacement at this point in time? The only application I guess you would get for something like that would be people that you don't want."
Martinez is reportedly feeling out the school board. The mayoral-appointed board must green light his ouster if Martinez does not voluntarily resign.
The board of education's next public meeting is Thursday of next week. ABC7 has left a message for the school board president, but it was not returned.
The Chicago Public Schools issued the following statement on Friday evening.
"CEO Martinez and Chicago Public Schools leadership are focused on building on the positive momentum of the new school year and implementing the District's new five-year strategic plan that was developed in partnership with our communities and approved unanimously Wednesday by the Board of Education.
We're honored and excited to continue working together with our school leaders, educators, and parents to put the needs of our students first and build on our nationally-recognized post-pandemic academic growth of the past two school years. Our top priority has always been investing in our schools and students while ensuring long-term stability for the system. That means being true to our new school funding model which will promote more equity, and being consistent in our pledge not to close or consolidate any schools.
Our students have clearly benefited from the increased stability in our school system. We are confident that our work to date has set the foundation for more success and will increase access to opportunities for all students. We will continue to lead with integrity and transparency in service of our students."