Facing mounting demands from the Chicago Teachers Union to finalize a new collective bargaining agreement, Chicago Public Schools officials say they don’t have the revenue to meet many of the union’s asks.
In a media briefing Thursday morning, CPS laid out the district’s financial priorities and sticking points in negotiations with the 30,000-member union. They claim that meeting all of CTU’s proposals would cost them $10 billion in new spending over the course of the four-year contract, and $2.2 billion for the first year alone.
In contrast, they estimate that their proposal would cost just $140 million for the first year, and far less for the full four-year timeframe.
CPS faces a deficit of around $500 million in each of the next five years, and ongoing debate has revolved around whether funding shortfalls should prevent the district from obliging CTU’s hundreds of proposals — which range from 9% cost of living raises to providing fully staffed libraries and art, music and sports programs in every school. The union’s contract would require hiring around 14,000 additional staffers, according to Chief Budget Officer Mike Sitkowski.
CPS chief Pedro Martinez, who has been the target of the union’s ire, does not participate in collective bargaining, per standard district practice. But in an emailed letter sent to families Thursday, Martinez stressed the importance of the “long-term financial health of the District” and underlined that the cost of meeting the union’s demands would nearly match CPS’ total $9.9 billion budget for the current school year.
“This proposed contract is incredibly important and incredibly complex — and we owe it to our families and staff to get it right,” Martinez wrote in the email.
“Pedro Martinez, what does he choose to do? To laugh in our faces, send out an inaccurate email that mischaracterizes our proposals,” said Jackson Potter, CTU vice president, in a video he posted on X, formerly known as Twitter. “He says we’re asking for too much money, too many staff, that he’s already protecting the district … That’s not true.”
The fourth largest school district in the country also faces new uncertainty, given President-elect Donald Trump’s promises to dismantle the Department of Education, which provides around 16% of CPS funds. CTU leaders said its contract proposals include protections that will be vital for students under Trump, and planned a rally Thursday to drive that point home.
“There is a lot at stake here,” said Chief Education Officer Bogdana Chkoumbova, noting gains in students’ standardized test scores heralded as leading large urban districts in pandemic recovery, in a joint Harvard-Stanford study early this year.
“Arriving at a new contract with our talented educators is an important part of ensuring that we can maintain a high quality, rigorous education for every child in Chicago that prepares them for success in college career and civic life,” Chkoumbova said.
A forthcoming budget amendment will account for the cost of collective bargaining with the CTU and principals’ association and a contentious pension payment previously funded by the city. The timing of that amendment depends on when CPS reaches an agreement with the union, district officials said Thursday.
Maintaining educators’ above-average compensation has been a guiding principle for CPS — and an area of progress in the negotiations, district leaders said, adding that agreements to date include providing union members better health care.
The district’s offer to provide 4-5% raises in each of the next four years has yet to be accepted, with CTU requesting 9% raises, along with changes to the schedule of pay increases, which would cost more than $3 billion over the four-year span of the next contract, officials said at the briefing.
While CPS and the union have both been proactive and negotiating in good faith, Chkoumbova added, “The gap between the CTU proposal and our district’s financial situation is significant.”
To come to a resolution, a forthcoming fact-finding report will be made public in the first week of January and closed-door hearings will occur in December, according to CPS.
To fund the cost of a new agreement with the union, Sitkowski said CPS is awaiting the largest tax increment financing surplus distribution in recent history from the city and looking at options, within the district’s $8.4 billion operating budget, to save costs.
But, he added, “There’s not going to be any layoffs, there’s not going to be any impacts like that on our staff or on our programming…We’re not considering furloughs to deal with anything this year.
At the same time, Martinez’s tenure remains in question, with the CEO facing a new round of criticism following the planned closure of seven charter schools.
He has been under fire for months for refusing Mayor Brandon Johnson’s ask to take out a $300 million high-interest loan to cover both the pension payment to the city and demands in the teachers contract — which the schools’ chief said would be fiscally irresponsible. Johnson put Martinez’s job on the line over the disagreement.
Those involved in contract negotiations are currently meeting four times a week to reach an agreement, district officials said. Asked by reporters if the potential firing of Martinez would slow down the process, district officials deflected.
“We’re not sitting here speculating as to whether there is or not going to be a change. You know, everyone, including our CEO Martinez, remains committed to reaching an agreement with our CTU partners,” said Sitkowski, the CPS chief budget officer.
