Chicago Mayor Proposes Record $16.6 Billion City Budget for 2026, Allocates $552.4 Million to Chicago Public Schools

Strategic Insights -

Chicago Mayor Brandon Johnson unveiled a proposed $16.6 billion city budget for 2026, which includes a significant increase in funding for Chicago Public Schools (CPS). The proposal aims to stabilize school finances, protect classroom programs, and offset federal funding losses. The additional $173 million for CPS would prevent midyear spending cuts, fill gaps left by the Trump administration's cancellation of magnet school grants, and enable the school board to make a pension reimbursement payment to the city. The funds would be used to safeguard teaching staff, restore student support programs, and ensure that school employees receive their pension benefits.

Key Takeaways:

  • The proposed city budget allocates $552.4 million to Chicago Public Schools (CPS), a substantial increase from the $379 million the school board projected.
  • The additional $173 million for CPS would prevent midyear spending cuts and help the district fill gaps left by federal funding losses.
  • The funds would be used to safeguard teaching staff, restore student support programs, and ensure that school employees receive their pension benefits.
  • The proposal uses a TIF surplus to support schools, with CPS legally entitled to 52% of the funds.
  • The TIF surplus will help fill an $8 million shortfall created by the federal grant cuts.
  • The budget introduces a new tax on social media companies, charging 50 cents per active user beyond 100,000 in Chicago, estimated to generate $31 million annually to fund mental health programs.
  • The proposal includes $7 million to raise pay for over 3,000 early childhood educators at city-supported programs and allocates additional money for summer youth employment.

Statistics:

  • $16.6 billion: Proposed city budget for 2026
  • $552.4 million: Allocated to Chicago Public Schools in the proposed budget
  • $379 million: Chicago Public Schools' initially projected budget
  • $173 million: Additional funding for CPS to prevent midyear spending cuts and offset federal funding losses
  • $8 million: Shortfall created by federal grant cuts filled by the TIF surplus
  • 52%: Percentage of TIF surplus funds allocated to CPS
  • $7 million: Allocation for raising pay for over 3,000 early childhood educators
  • $31 million: Estimated annual revenue from the new tax on social media companies

Sources:

  • Chalkbeat
  • Chicago Tribune
  • Times of Chicago