Massive school debt: It's Chicago's problem today, but it will likely be our trouble before too long

 

Chicago's public schools are in a serious financial situation, according to Macquline King, the school system's interim superintendent.

The school system is facing a budget short fall of nearly $734M, or more than $201M in debt than previously reported, King announced June 26. In addition to that debt, the school district is carrying more than $8.6B in long-term debt, in the form of bonds, mostly for building construction and improvements. And there's more.

The school system also has a significantly under-funded pension program. As of late 2024, the pension system was funded at 47.2%.

In announcing the new numbers, King promised to make addressing the debt a top priority, but offered no details. The Chicago Public School Board approved a four-year, $1.5B contract with the Chicago Teachers Union in May. The union represents more than 25,000 teachers.

There's significant debt before the school board and firm commitments on the table. The school board needs to address both.

The state's 2026 fiscal year begins July 1. The state's new $55B budget includes $11.2B for the Illinois State Board of Education (up from $10.8B), according to Chalkbeat.org, which covers public education in Illinois. 

Illinois Gov. JB Pritzker just announced that he intends to seek election to a third term next year, but he's also made it clear that he's considering a run for president in 2028. As a Democrat, JB thinks taxpayers throughout Illinois should help Chicago residents address their financial challenges - which not only the school system, but the city's transit system, the city's pension system for the police and fire departments, and the city's government. In other words, the pain must be shared, and "we're all in this together," as elected officials often say just before they screw the taxpayers. 

And while the budget shortfall facing the Chicago school board appears at first glance to be a Chicago problem, it is in reality an Illinois problem, and possibly, in time, a national problem, one requiring federal tax dollars. 

That's how I see it. 

-- Thank you for reading. Your comments and questions are always welcome.