>> Chicago, >> Public Schools is facing a more than 730 million dollar budget deficit for next school year.

Cps leaders cite rising pension payments and operating costs as factors for worsening the district's finances, but also argue that those expenses would be manageable with greater support from state and federal leaders.

Joining us to break down the deficit are Austin Berg, executive director of the Chicago Policy Center, which is part of the Illinois Policy Institute and McKayla Blaze, CPS board member representing district 5 be with constituents in neighborhoods like North Lawndale and Garfield Park.

We should mention we also invited Chicago Public schools and the Chicago teachers Union.

But they declined.

We also reached out to the Chicago Principals Association but haven't heard back.

I think the 2 of you for joining us.

Also.

Let's start with you, please.

Because as we mentioned, CPS is citing rising operation and Pence and pension costs as well as lower federal and state support as responsible factors for the budget deficit.

Is that how you see it?

Pension costs are definitely a factor.

But the fact is we have records, state revenue and CPS and record federal revenue and CPS as well.

>> I think the real cause behind this deficit is twofold.

One is that the district really went on a hiring spree during COVID against the advice of most financial experts.

They're adding a lot of recurring costs on one-time revenues that they knew would go away after the pandemic was over.

So that included adding 9,000 new district staff and increase the size of the central office by 60%.

Meanwhile, student enrollment fell by over 10% fell by 45,000 students.

Over the same time.

That's really huge factor in the second really large factor is the Chicago teachers union was demanding at the bargaining table.

Things that we're going to cost way beyond what CPS could afford.

even when confronted with that information they pushed and they got what they wanted.

But the money isn't there to pet.

>> Mckayla, how do you see it?

What what do you think is behind the deficit?

I think CPS has been done historically underfunded for decades.

We haven't had the money that we're supposed to have by the state's own admission by their own funding formula.

We are under funded.

There's no surprise or mystery in the fact that CPS has not had the resources it's needed.

And blaming CTU seems.

Just like in the easy response to a significant issue cost of everything are up and we're dealing with.

>> 80 year old infrastructure there's a number of things that we have to accomplish now.

That we need funding for.

>> Mccarley, you've said that the state should be doing more to fill that funding shortfall facing CPS.

Explain your view.

What it what do you think they should be doing?

>> I'm not saying that the state should do more, but the state said the state should do more, but they haven't.

They got all the experts together and they figured out how much CPS should be funded and from their own something formula.

We're over a billion dollars short.

>> and so it and it's not just CPS's schools around the state.

And so we're just encouraging them to ramp up their plan to increase the funding for CPS.

Just give us the funding Then what they're actually planning for.

>> Of course, you're referring to the evidence based funding formula, which is based on what it takes in that district to educate the children in the districts based on its Cps has also said Austin, that it's not receiving enough federal funding.

The district previously received.

As you said, that influx of pandemic relief money, those funds have dried up and CPS, you use that that funding, as you said, you believe that the district became too reliant on that pandemic aid in.

Is it possible that the thinking at the time was okay once the pandemic money has gone to state money will start to kick in and we can afford all of this.

that's really are responsible budgeting.

Imagine if we did that in our household budget and you get a windfall from a lottery and you start spending like you're going to burn, you know, 10 million dollars a year in perpetuity.

But obviously that was a windfall.

And you have to sock that away for a rainy day.

>> Instead, it was spent on more and more recurring expenses again, adding 9,000 members of Central District staff increasing the central office by 60%.

I do want to talk, though, about about resources.

I think it's important to note that.

There's been a lack of a realistic plan to get additional resources from the state.

I should note that people spending has doubled that CPS over the last decade.

It's now $32,000 per student per year.

If you want to talk about those resources, I think it's important to note that City Hall has the worst relationship with Springfield of any mayor of the last 50 years.

I think that's an important thing to note.

They have not been able to put forth a credible plan to get Springfield to move on this issue.

There is also hundreds of millions of dollars on the table for public school students in Chicago today.

If the state would just follow the example of Colorado Governor Polis and New York Governor Kathy Hochul and opt into a new federal tax credit for education donations that would send hundreds of millions of dollars to public school students in Chicago.

But the Chicago teachers union and the board member blaze have voted against that proposal.

I think that is unconscionable.

We need to get resources in the hands of students through private services for students with special needs.

Those can all be funded with private donations.

If we opt into this McKay, let me give you the opportunity respond to that as well.

But I also want to talk about what CPS has said about how they plan to address the deficit.

>> In a letter to families, CEO Macklin King said, quote, CPS will make significant reductions to Central Office network offices and >> citywide expenditures.

CBS made 270 million dollars worth of similar reductions last summer.

Principles are also learning about cuts at the school level, including funding for assistant principals at smaller schools and teacher losses are expected capped at 4 for elementary schools and 6 for high schools.

Mcconnell, what do you think?

that is gonna look like.

>> I think that's going to be tough We've seen Gray's we've seen improvement and turned out.

It turns out the more invest in our schools, the better they do.

So that's a classroom are going to be really tough but they may be necessary if we find the funding in Springfield.

But I and II.

I'm not don't know.

Mayor Governor Pritzker's relationship.

But I do know that there are a number of state legislators that are committed to making sure that CPS has what they need.

And it's again, not just CPS since its Illinois state schools are rural areas are suffering as well.

And we've really got to put our money where our mouth is.

We have to put our money where our values are.

If we care about.

educating our students, we have to give them what they need.

It's just that simple.

And so as we look at our budgets and be talking to Springfield, but also be talking to city We were able secure.

520 million, very 520 million dollars last cycle.

I don't think we're going to get that close.

But we're going to keep pushing on all sides.

I mean, that's our job board members is to make sure that we secure the funding that we need.

>> Austin, a couple seconds left.

What do you think needs to be done to get CPS to a balanced budget?

Cps right now is in really serious fiscal trouble.

We are the largest junk bond issuer in the country at CPS.

So there needs to be a serious conversation about state rep Curtis Tarver spill in Springfield for State financial control over CPS.

We need to opt-in to the Federal Tax Credit scholarship program to get money into public schools and we need better leadership in city Hall to get what we need from Springfield craft.

That's where we'll have to leave it.

Of course, we'll