The Chicago Public Schools (CPS, or the ‘District’) is lacking the cash that it needs to meet operating costs. The crunch has become so bad that CPS’ finance team has voiced concerns about an inability to make payroll in September if a FY2027 budget is not passed by the end of July. This piece will explain what this cash shortage is, how it came about, and what CPS can do to alleviate it.
by Roland CaliaThe State of Illinois (Illinois or the 'State') enacted a multi-year $52.6 billion FY2026 capital budget on June 16, 2025 The budget is a 1.5% decrease from FY2025 due to lower spending on new projects. The following are some capital budget…
Each fall, the Governor’s Office of Management and Budget (GOMB) issues its Illinois Economic and Fiscal Policy report, which serves as the State of Illinois’ (Illinois or the ‘State’) primary long-term fiscal planning document and an early indicator of whether Illinois is structurally balanced heading into the next budget year. The 2025 edition of the report, released on October 9, 2025, about a month earlier than required by statute, signals an increasingly strained fiscal environment due to…
Executive Summary Illinois’ fiscal policies significantly influence economic growth and employment in the state. How do those choices affect Illinois’ status as a top-tier place to “live, work, and do business,” and what specific fiscal factors appear most related to desired economic growth and investment state-wide? This report complements the Civic Federation’s upcoming State Budget Roadmap report by providing a substantive overview of Illinois’ economic landscape and fiscal structure,…
As contract negotiations between the Chicago Public School District (CPS or the “District”) and the Chicago Teacher’s Union (CTU) continue, how to pay for the increases in salaries and other contract demands remains an outstanding question. One idea CTU representatives have suggested is using CPS’ general fund balance or reserve funds. In its fiscal year (FY) 2024 financial audit, the District listed a fund balance of approximately $1.3 billion on June 30, 2024. A common misperception is that…
Executive Summary The Chicago Public School District (CPS or the “District”) faces a critical financial juncture, highlighted by structural budget imbalances, rising expenditures, declining enrollment, significant near-term infrastructure investment needs, and substantial long-term liabilities. A new 21-member Board of Education (the “Board”), partially elected for the first time, inherits these challenges as it assumes oversight on January 15, 2025.
The City of Chicago currently faces mounting fiscal challenges, with a projected FY2025 budget gap of $982.4 million. A significant contributor to the City’s rising costs is its rising debt burden over time. More information about the City’s current financial challenges can be found here.
The Civic Federation today released a position paper calling on the Illinois General Assembly to pursue foundational structural reform of Northeastern Illinois’ mass transit systems—the Chicago Transit Authority (CTA), Metra, Pace and the Regional Transit Authority (RTA)—by centralizing the service boards and operations under a single, duly empowered and resourced regional transit agency. Doing so would allow for more efficient, effective, integrated and equitable service delivery as well as…
CHICAGO — The Civic Federation today released a position paper calling on the Illinois General Assembly to pursue foundational structural reform of Northeastern Illinois’ mass transit systems—the Chicago Transit Authority (CTA), Metra, Pace and the Regional Transit Authority (RTA)—by centralizing the service boards and operations under a single, duly empowered and resourced regional transit agency. Doing so would allow for more efficient, effective, integrated and equitable service delivery as…
The Civic Federation today releases a report calling for the consolidation of the Chicago Transit Authority, Metra, Pace and the Regional Transit Authority into a single regional transit agency. The Federation urges linking transit governance reform with funding.
