CPS seeks financing as debate continues over $150 million in state funding

CHICAGO (WLS) -- As Chicago Public Schools seeks short-term financing to ensure schools open on time, Mayor Brandon Johnson gave no indication Monday that the district is any closer to securing the $150 million in state funding included in the CPS budget approved by the school board.

Johnson discussed school funding while appearing with the Chicago Teachers Union to announce a list of more sustainable CPS schools. He continued to call on state leaders to provide additional funding for the district but did not identify a specific plan to obtain the money.

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"I'm asking the governor and the general assembly to tell us where their heart is and based on where their heart is that is how we will fund our schools," Johnson said.

The mayor and school board members aligned with the Chicago Teachers Union are counting on additional state assistance after the board voted last week to reject CPS CEO Dr. Macquline King's proposed balanced budget. Instead, the board approved a budget that removes layoffs and includes $150 million in state funding that has not been approved.

School board member and board president candidate Jenny Custer said discussions with lawmakers left her doubtful that the money would materialize.

"I probably talked to about a dozen different legislators, and they all pretty much had the same message that this was not going to come through," Custer said.

School board member and board president candidate Jessica Biggs also said no additional funding is currently available.

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"There is not additional money available to us, and so we really need to refocus ourselves on starting school and making sure that we're able to do the borrowing, so that we can make payroll on the first day," Biggs said.

Because the CPS budget is not considered balanced, the district must borrow money to ensure schools open on schedule and employees can be paid, according to board members.

Although Custer and Biggs are opponents in November's race for school board president, both supported King's budget proposal and said mayoral politics influenced last week's vote.

Biggs suggested the city could generate additional revenue for CPS through tax increment financing funds.

"There's a great likelihood that the mayor will dip into additional TIF surplus and decide to sweep that tax increment financing or TIF dollars, and then produce additional revenue for CPS," she said.

Custer criticized that approach.

"He'll look wonderful right before you know election season, and won't that be great? And we can turn around and blame the state for all the things they didn't do," she said.

Under a school funding formula bill passed in 2017, the state has until 2027 to fully fund every school district in Illinois. According to the district's supporters, CPS is currently funded at 70%.

Hilario Dominguez, the Chicago Teachers Union-backed candidate for school board president, said the $150 million at issue represents only a fraction of what CPS is owed under the formula.

"The adults in charge shouldn't be creating more anxiety. We have to be talking about making sure our schools stay focused on teaching and learning, while we saw the financial challenges in front of us, and we need a state to do its part," Dominguez said.

School board members said they remain confident CPS will secure financing to meet payroll obligations, though they acknowledged the situation could result in a credit downgrade and higher borrowing costs. They said the district is expected to provide an update later this week.