Chicago Public Schools released preliminary budgets to more than 600 schools Tuesday, kicking off the district’s budget process for the 2026-27 school year.
The move gives principals and local school councils time to review their allocations and request changes before the school board votes on the final $10 billion budget this summer.
CPS is facing a $732.5 million deficit, driven by a decline of 45,000 students since 2019, rising facility maintenance costs, and higher labor expenses. The district is funded at 73% of what Illinois considers adequate, according to the release.
“This will be a challenging budget year,” Superintendent Macquline King said in a statement.
The district has added nearly 10,000 staff positions since 2019—mostly in schools—to help students recover from the pandemic. But with enrollment dropping and federal pandemic relief funding expiring, the district cannot sustain those staffing levels, Chief Education Officer Karime Asaf said.
At the same time, CPS is serving more students with disabilities, English-language learners, and homeless students—groups that require additional support.
The city’s $1.01 billion Tax Increment Financing surplus last year provided CPS with $550 million in relief. The district plans to use the preliminary budget process to adjust staffing formulas to account for enrollment changes while protecting funding for high-need schools.
The preliminary budgets prioritize classroom teachers, counselors, nurses, and support staff. The district also plans to open dozens of new special education classrooms.
School budgets must be finalized by June 9. The school board must approve the final budget by August 29.