Chicago Public Schools and Mayor Johnson Clash Over Funding Solutions

Chicago Public Schools Chief Executive Officer Pedro Martinez expressed belief that differences with Mayor Brandon Johnson over school system funding should not have reached the current level of public dispute. “I never picked this fight. I wanted things to deescalate,” Martinez stated in an interview with the Sun-Times on Wednesday. Despite disagreement, Martinez maintains that there is general alignment on education goals with the mayor.

The primary point of contention involves whether the school system should take out a short-term loan. Mayor Johnson advocates for the use of tax anticipation notes, which would allow borrowing against anticipated tax revenues. Martinez opposes this measure due to potential high interest rates and the risk of further damaging the school district’s poor credit rating.

Alternative funding strategies have not been publicly disclosed, adding to the tension between the city and school officials. Martinez argues against increasing the district’s debt, citing ethical leadership responsibilities: “I have been working both ethically, with integrity, providing information, always with the attitude of ‘maybe they don’t understand the risk of borrowing.’”

In contrast to additional loans, Martinez has requested a release of funds from tax increment financing (TIF) to cover the projected deficit. Although Mayor Johnson is open to reallocating some TIF surplus funds, the sums remain a subject of political negotiation, particularly with City Council members.

Johnson’s perspective is that the full reallocation of TIF funds could face challenges, as these resources are often critical for development projects within council members’ wards. Furthermore, CPS is under pressure to manage payments for non-teaching staff pensions, a financial obligation diverted onto the district by Mayor Johnson. This TIF revenue would also assist in securing a union contract with the Chicago Teachers Union (CTU).

Some council members who support Martinez argue CPS does not require additional funding, a point Martinez disputes by citing historical underfunding: “The district is not fully resourced, and it has been under-resourced for decades.” Like other city leaders, Martinez emphasizes long-term solutions involving the state legislature in Springfield.

The CTU criticized Martinez for not sufficiently lobbying for state aid earlier in the year, an assertion Martinez countered by emphasizing the city’s focus on other legislative priorities. According to a report, Martinez encountered a “heated” meeting in May with Governor JB Pritzker’s officials, who noted a lack of alignment between CPS and city leadership on funding priorities.

Efforts to move forward include Martinez’s pledge to prioritize CPS funding in future legislative sessions, while negotiations with CTU continue to seek financial agreements that do not further strain the district.