Chicago Public Schools’ $732.5M Gap Puts Layoffs and Furloughs in Play

Chicago Public Schools is asking the Chicago Board of Education to consider a proposed $9.88 billion operating budget for the 2026-27 school year after beginning with a projected $732.5 million deficit.

The plan combines structural reductions, anticipated city revenue, potential unpaid furlough days and a districtwide spending freeze. It remains a proposal and could change before the Board takes final action.

How CPS says it would close the gap

CPS says it identified $450.8 million in initial balancing strategies, leaving a remaining gap of about $281.7 million before additional measures were added, according to the district’s FY2027 budget overview.

The proposal assumes $200 million in surplus Tax Increment Financing revenue from the City of Chicago. That figure is a budget assumption tied to anticipated city revenue, not money that CPS has already received or that is guaranteed.

The district also proposes five unpaid furlough days for CPS employees between January and June 2027. CPS says the furloughs could be avoided if additional city, state, local or other revenue becomes available. The dates have not been finalized.

Other proposed steps include a midyear districtwide spending freeze and reductions to non-personnel budgets.

Potential staffing effects

WTTW reported that the proposal anticipates layoffs affecting about 760 teachers and 801 support personnel. Those potential school-based staffing changes should be distinguished from central-office and citywide layoffs that the district has already completed.

CPS says the proposed furloughs would not reduce student instructional time, and the district says the school calendar would remain intact. The district also says legally required services for students with disabilities and English learners would continue, as described in its July budget update to families and staff.

For families, the practical question is whether the plan ultimately changes staffing, services or school-level operations. Those effects will depend on the final budget and whether additional revenue becomes available.

What CPS says schools would retain

Despite the deficit, CPS says the proposal includes a $143 million increase in direct school funding and additional special-education staffing. The district also says it is protecting instructional time and key student services.

Those statements are CPS’s stated budget priorities, not a guarantee that every school will experience no change. Board members and the Chicago Teachers Union have raised concerns about the proposed cuts, furloughs and staffing reductions. WTTW’s report from a July 20 public hearing described scrutiny from Board members and opposition from the union.

What happens next

The Board of Education is scheduled to consider the proposed budget at a meeting on July 30, 2026, at 10:30 a.m. at 42 W. Madison Street. The meeting notice includes public participation information and livestream access.

July 30 is an important decision point, but it is not the final approval deadline. CPS and WTTW identify August 29, 2026, as the deadline for approving the budget.

Chicago families and CPS employees should watch for revisions after the Board meeting, particularly changes tied to city TIF revenue, possible state funding and the proposed furlough and staffing measures. Until the Board approves a final plan, the layoffs, furloughs and spending freeze remain proposed actions rather than completed decisions.

Sources

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