CEO Pedro Martinez at Gage Park High School. CPS expects a deficit of $509 million next year. It says that would rise to at least $2.9 billion under contract terms proposed by the teachers union.
Ashlee Rezin/Sun-Times
CPS pushes back against CTU contract demands, arguing they would lead to record deficits
The union says the spending is needed for students, highlighting fundamental differences between the two sides as they try to reach a contract deal this fall.
Chicago Public Schools officials said Tuesday that the Chicago Teachers Union’s contract proposals would result in a deficit of at least $2.9 billion for the 2025-26 school year, a hole more than five times the current projection and growing as large as $4 billion by 2028.
They also threw cold water on the idea of borrowing to pay for the additional costs, noting the district is already weighed down by a ton of debt, much of it taken out at moments of crisis. That marked the first time CPS had publicly addressed a private proposal by Mayor Brandon Johnson for district officials to take out a short-term, high-interest loan to pay for a CTU contract as well as a pension payment that his office is demanding be covered by the district. CPS officials had pushed back on that idea privately.
“We can all recognize that issuing debt has not been a good thing for CPS,” said Chief Financial Officer Miroslava Mejia Krug.
The CTU, meanwhile, argued the spending is necessary to strengthen students’ academic and social progress and that the school district should be more creative and aggressive in its pursuit of additional revenue, including state and federal funding. By reverting to cuts in order to fill budget deficits, the CTU said CPS is effectively letting the state off the hook for failing to provide the necessary resources.
The dueling arguments were on display at a public bargaining session Tuesday between CPS and CTU, the third such meeting in these negotiations where members of the public could observe talks. The points present the core differences between CPS and CTU over how to address a structural budget deficit and historical underfunding of the school system.
CPS officials are trying to walk a fine line. They boast about the progress the school district has made through investments in staff. Chief Budget Officer Michael Sitkowski said schools have seen a 30% increase in funding over the past four years, which CPS argues has led to greater reading test scores growth than most other school districts.
But he also said there is this reality: the district is facing a deficit and the state does not currently seem open to providing more revenue. He pointed out to union officials that the state believes “it has met its obligation.”
“We believe our educators deserve fair wages, but we must keep in mind what is responsible and sustainable,” Sitkowski said.
CTU President Stacy Davis Gates pushed back. She stressed the price tag CPS has put on the contract not only includes raises, but other things such as proposals for more art teachers and librarians. She also said that much of what CPS touts as progress for the district came out of collective bargaining agreements, such as more requirements for social workers and counselors.
[The contract’s price tag] “makes people think, ‘greedy teachers,’ ” Davis Gates said. But she noted that many of the investments the district now points to with pride came out of hard- fought contracts that required strikes.
The union, which in recent weeks has grown increasingly critical of CPS CEO Pedro Martinez and his approach to the budget, is reportedly asking for 9% annual raises for teachers, plus promises that every school will have a baseline of staff that will allow for small class sizes and a variety of arts, music and physical education classes. The CTU also has made proposals around more preparation time for elementary school teachers, housing for homeless students and support for migrant children.
The CTU’s bargaining presentation for Tuesday’s session did not ask the district to take out a loan, but it challenged officials’ financial analysis and claims that they lack funding.
The union pointed to revenue initiatives that the city and state could explore, like more heavily taxing millionaires and corporations — which would require changes to state law — or seeking federal funding for school building improvements. The union also suggested efforts that could take years and would not solve the budget problems in the short-term, like fighting banks for past “predatory” loans to CPS or seeking money back from past “bad vendor contracts.”
“These predatory deals are costing hundreds of millions a year,” said Pavlyn Jankov, research manager for the CTU. “The district has to make every effort to claw back those funds.”
Mejia Krug revealed that the school district is actually a part of some national lawsuits against banks, but it is unclear whether those lawsuits specifically address high interest loans. During the financial crisis, stemming from the budget stalemate under Gov. Bruce Rauner, from 2016 to 2018, CPS took out six high interest loans. Just on these loans, CPS must pay $194 million this year.
Mejia Krug said the district would be open to going after banks if they were involved in fraudulent activity, but such lawsuits can take years to make their way through the courts.
Among the many options, the CTU suggested ending tax breaks to wealthy downtown developers be ended. But Johnson, a CTU ally and former union organizer, has proposed a special taxing district that would give breaks to downtown developers.
CPS officials said they agree the district needs more resources and that the state has to do its part. CPS also recommended consolidating Chicago’s pension system with the state’s system as a way to save money. But they warned that the district “cannot make these investments without additional revenue” coming in first.
The teachers contract expired on June 30 and the two sides have been negotiating since April. The CTU leaders have said they thought negotiations would be smoother than in the past decade with former organizer Brandon Johnson in the mayor’s office.
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