Chicago Board adopts FY27 budget after heated debate over TIF and state funding

The Chicago Board of Education voted to adopt the fiscal year 2027 budget with amended language that raises the district's state revenue assumption by $150 million and earmarks $100 million to reverse some proposed layoffs.

Chicago Public Schools CEO Dr. King framed the vote as urgent, saying the district faces a $732 million structural deficit and needs short‑term financing in order to make payroll by September 4. "Delaying the budget would be a catastrophic for our district," she said during her remarks, urging passage to secure short‑term loans needed for September payroll.

Acting Chief Budget Officer Emily Lazoko laid out the numbers: a $9.96 billion plan that preserves core investments and closes roughly $330 million of structural shortfalls through efficiencies, formula adjustments and a revised TIF surplus assumption of $285 million. The administration removed five proposed furlough days after public feedback and said the revised TIF assumption and other measures keep the budget balanced as presented.

Board members spent more than an hour questioning the administration about the relative risks of relying on TIF surplus distributions from the City of Chicago versus anticipated state supplemental funding. Several members warned that counting unsecured state revenue could expose schools to midyear cuts if those dollars failed to materialize; General Counsel advised that the school code requires budgets to rely on information “known to the Board” at the time of the vote.

Member Boyse moved the amendment to increase the state assumption by $150 million (including $50 million in mandated categorical grants and $100 million in additional evidence‑based funding) and to use $100 million to rescind layoffs; the amended language passed 11–7–1, and the final adoption of the budget with that language passed by the same margin. The board recorded the vote as 11 ayes, 7 nays and 1 abstention.

The budget vote was immediately followed by separate unanimous votes to adopt the FY27 capital improvement plan, levy property taxes for FY27, and authorize tax‑anticipation notes up to $1.65 billion to address the district's short‑term cash needs. The administration said those financing actions are needed to secure liquidity while the district continues to press the city and state for additional revenue.