CPS budget update warns of $732M gap; July 30 vote could mean furloughs

Chicago Public Schools (CPS) released a budget update on July 15, 2026, warning that it faces a projected $732 million deficit for the 2026–27 school year. CPS says its operating budget proposal includes a districtwide mid-year spending freeze and five employee furlough days as measures of last resort if the gap isn’t closed.

CPS says the furlough days would be scheduled on existing non-attendance days for students between January and June 2027 to avoid cutting instructional time.

The contingency plan CPS says would come later in the school year

CPS says the timing is intentional: it would delay implementing the mid-year freeze and furlough contingency until the second half of the school year, creating a “critical window” between now and December 31, 2026 for CPS, the Chicago Board of Education, labor partners, and city and state leaders to secure additional revenue needed to close the remaining gap.

Specifically, CPS says the proposed plan includes:

• Five furlough days for CPS employees between January–June 2027, with all five days occurring on existing non-attendance days for students.
• A districtwide mid-year spending freeze if the deficit remains.

CPS says it is working to avoid these steps entirely. It also says that if additional revenue is secured through its advocacy before the end of 2026, CPS’s priority would be eliminating the proposed furloughs and not implementing the mid-year freeze.

Where CPS says additional money could come from

CPS links its contingency structure to assumptions about additional funding it is seeking, including an assumption of $200 million in surplus Tax Increment Financing (TIF) funds from the City of Chicago.

The update also describes long-term pressures contributing to the structural deficit, including declining enrollment and declining revenue, plus costs such as maintenance for aging facilities, labor contracts, employee pensions, and debt obligations.

What happens next: CPS budget vote on July 30

CPS says its operating budget for the 2026–27 school year will be presented to the Chicago Board of Education for a vote at its July 30, 2026 meeting.

CPS also laid out community feedback steps before the vote, including written feedback through July 29 and two public hearings on the budget on Monday, July 20.

For families and staff, the key practical question is whether CPS can close the projected $732 million gap before the contingencies CPS described would be triggered.

Sources

• Chicago Public Schools (CPS) — Budget update for 2026–27 (community update)
• WTTW News — CPS planning furlough days, spending freeze to close $732M shortfall
• Chicago Sun-Times — CPS plans layoffs and non-attendance furlough days amid $732M deficit