Chicago Public Schools Faces Tense Budget Showdown Over Pension Payment and Labor Contracts

The CPS board must decide whether to prioritize a $175M pension payment to the city or fund labor contracts, with a vote set for March 20.

CPS CEO Pedro Martinez warns that making the $175M pension payment could jeopardize labor contract negotiations with teachers and principals, potentially leading to a strike.
Mayor Brandon Johnson insists CPS fulfill its pension payment commitment, arguing failure to do so could leave the city with a budget deficit requiring reserve funds or cuts elsewhere.
The school board is considering a budget amendment that includes $139M in new revenue, but this falls short of covering both the pension payment and labor contract costs.
Options proposed include refinancing CPS debt, taking out a loan, or reallocating funds, though each has faced criticism for long-term risks or legal concerns.
The decision comes amid broader financial challenges for CPS, including a $500M projected deficit for the next school year and strained relations between the mayor and district leadership.