CPS CEO urges city to return TIF revenue as district faces $529 million structural deficit

Chicago Public Schools Chief Executive Officer Pedro Martinez told the Board of Education on May 29 that the district faces a structural deficit of $529 million for the 2025–26 school year and urged city and state leaders to close the gap without cutting classroom funding. Martinez repeated his call for returning Tax Increment Financing revenue to schools and for reform of the TIF system to provide sustainable school funding.

Martinez said CPS has identified $229 million in central-office savings for the coming school year and has already implemented $500 million in reductions to protect this year’s school budgets. He said the next step is securing an additional $300 million in revenue, and that CPS has pressed Illinois lawmakers for more funding.

To fill the remainder of the gap, Martinez urged the City of Chicago to “return enough TIF funding to the city schools so we can close our budget gap this year” and to reform the program thereafter. He cited citywide TIF balances and said the city currently has more than $3 billion in available TIF revenues and that property tax revenue diverted to TIFs has increased 47 percent in five years.

Board members and union leaders in public participation echoed Martinez’s call for transparency and alternatives to cuts. SEIU Local 73 President Diane Palmer and CTU President Stacy Davis Gates both urged the board and city officials to prioritize school funding and to use available local revenue before reducing staff or programs.

Martinez emphasized that the district will continue to press Springfield for additional state funding and to negotiate for local solutions. He said the district’s plan begins with protecting school budgets while avoiding new taxes or deeper borrowing.

The board did not vote on any TIF-specific legislation at the May 29 meeting. Martinez said the district would continue working with the mayor’s office, the board, and state lawmakers while pursuing internal cost reductions and increased revenue.