Pension payments and TIFs for CPS still murky
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When the Chicago Public School board passed its 2026 budget last week, it reaffirmed a refusal to reimburse the city for a $175 million pension payment — that's legally Chicago's responsibility — unless the city can come up with more tax increment financing funds for the district.
Why it matters: The move deals a blow to Mayor Brandon Johnson, who wanted CPS to foot the bill, and leaves uncertainty in the city's 2025 budget, which is already short $146 million.
Between the lines: The idea to make the $175 million payment contingent on more city or state funding was crafty, given that many worried the mayor and alders would withhold funds from CPS in retaliation.
- To allay those worries, 27 alders signed a letter to board members before their vote, urging them to reject the "reckless" $175 million payment and assuring them that "we will support a TIF surplus to help balance both the city and the CPS budget."
Yes, but: The letter does not say how much TIF funding they will approve.
- The board is requesting $379 million.
- The Chicago Teachers Union, however, is trying to get alders to commit to $500 million to reverse some of the staff cuts the district made to balance the budget.
What they're saying: When Axios asked Johnson on Friday if he would support giving additional TIF money to CPS, he simply answered: "For the last couple of years, I've released the largest TIF surplus in the history of Chicago."
- Indeed, his 2025 budget released a record $570 million, with $311 million going to CPS, but Johnson declined to commit to fulfilling CPS's TIF request, even when asked again.
What we're watching: Whom Johnson and the board will choose as the new CPS CEO, given that the last two refused to accommodate the mayor's wishes on key issues.
- Macquline King could leave her post as interim CEO as early as this month.
What's next: City Council members tell Axios that they will likely vote on expanded TIF funding for CPS this fall.
- If the measure doesn't get at least 34 votes, the mayor could veto it.