The CPS CEO emphasizes TIF Fund as a key to protecting South, West Side Schools in the middle of deficit

At the end of the school year, Pedro Martinez Pedro Martinez Chicago Public Schools (CPS) published a decisive message to families, employees and supporters about the upcoming budget for the school year 2025-26. In view of the course of the pandemic support of the federal government, the increasing costs and the growing need of the students, the district is committed to a significant deficit, but Martinez points to a controversial urban mechanism – tax increase financing (TIF) – as a solution to protect the school budget, especially for those who serve black students on the southern and western sides.

In his letter, Martinez emphasized three most important findings: an obligation to prevent cuts in classrooms by targeting the central office and the administrative costs, the possibility to compensate for the budget without increasing taxes or increasing debts, and the need to combine the interest groups to use existing income, in particular the means to finance schools.

This budget season presents new challenges compared to previous years. The loss of Federal Covid-19-aid fund in connection with inflation and increased labor costs from the latest agreements creates a difficult financial landscape. In addition, CPS records an increase in enrollment and serves more students with disabilities, English learners and people with homelessness – population groups that often contain a considerable number of black students who need targeted support. These growing needs underline the importance of initiatives such as the black student success plan of the district, which aims to tackle historical inequalities and to improve the results for black students through targeted programs and resources. However, the plan is currently suspended a complaint for the federal government's civil rights, in which it is claimed that it does not discriminate against black students and gives the efforts of the district to support all learners fairly.

Despite these hurdles, the CEO confirmed the commitment of the district, investments in core lessons, support for students in need of protection, prioritizing programs for pupils and employees and at the same time reducing expenditure for non -persons and sellers.

An essential point that is highlighted in the letter and is a particularly relevant for equity in black communities is the continuation of the new household model implemented last year. Martinez found that the old financing system per student disadvantaged smaller and subfire schools, “mainly on the southern and west sides of Chicago”, which contributed to a distinction in student experiences. The new model aims to provide a basic standard for employees and resources for every school for each school, regardless of size or location as well as additional funds based on the needs of the students – a step with which more fairer resources should be brought in in historically under -supplied areas.

While preliminary school budgets are published to headmaster this week, Martinez made it clear that the total amount of direct financing for schools was not reduced despite the overall deficit of the district. He emphasized that the reduction in direct school financing would have the most serious effects on the students and is the last a means.

In order to avoid such cuts, CPS plans to find internal efficiency increases. In contrast to last year, however, these internal savings are not sufficient to completely close the budget. Martinez argues that additional income must be brought into the system in order to fully protect individual school budgets.

Here the focus on TIF funds becomes central. Martinez explained that 600 million US dollars are redirected to the basic taxes of CPS and other agencies in TIF every year. He pointed out that there are currently over 3 billion US dollars in TIF accounts that have been filled with basic taxes annually, of which he believes that they “go into public education at all”.

Martinez criticized the TIF system and explained that it prioritized “developers instead of students”. He argued that a fully financed education system is the true cornerstone of economic development, promotes local talents and attracts families. While the city sometimes explains TIF surpluses and returns some funds to CPS (like the 299 million US dollars received last year), these decisions are inconsistent and unpredictable.

The CEO calls for the mayor, the city council, the Board of Education, the Labor Partners, the Philanthropical Groups, the Community Organizations, Families and Employees to combine a plan to use this existing TIF income in order to close the household gap and to enable sustainable means for the district. He warned that the alternative “depth and painful cuts in the school budgets that our students today or irresponsible loan, which they will bring nearby without bringing them into the system without bringing these existing income.

Martinez, whose term of office ends in mid-June, expressed his deep investment as a CPS-Alumnus, parent and guide to ensure the future success of the district. Its final public message about the budget is emphasized for the use of TIF funds if state financing does not occur completely, and it is clear that it is the best way to continue to build up schools, employees and students – especially in black communities who are historically confronted with resource differences and to build up academic profits and to have a joyful, strict and fair experience move. The district encouraged families and employees to work for state financing and to deal with the budget process.