>> Chicago public schools, leaders are unveiling their latest plan to close a whopping 700 million dollar budget gap.

The district plans to address the deficit by relying on non classroom cuts, additional revenue streams and a contingency that puts off 175 million dollar pension payment.

>> The choices that we have at hand are difficult ones.

And it's very difficult for us to be able to make cuts of this magnitude and keep the impact off of our schools.

>> At Masterson joins us now with out.

So we know that the budget, the district excuse me is trying to close the 734 million dollar budget gap.

One of the key ways they're proposing to do that.

Yeah.

Cps outlined a number of strategies.

It's going to rely on to close that gap including debt, refinancing, operational and central office cuts and those additional revenue streams.

But the 2 big ones that it's centered on today >> was a 379 million dollar payment from the city into funding.

This isn't an increase of 79 million dollars over what the district had initially anticipated getting from Chicago and the second one also involving the city is 175 million dollar pension payment.

That CPS was set to make this municipal pension payment.

Cps says it will make, but only if it gets the state funding or to funding to cover that cost.

Otherwise it's going to push that cost on to the city.

This can be somewhat hard for some board members to see being made with the state's hesitancy to fund CPS above what it has already given it.

>> Right the you also mentioned that CPS is again proposing that it will include that 175 million dollar pension payments.

Here are 2 board members weighing in on that first Emma Lozano.

And then she write this month.

>> You know, we're dreaming here.

That's not the way things work.

And I'm hoping that there is a nother budget report that's going to.

The payment because I I don't see how this is going to work.

I'm hearing a lot about politics here and not a lot about children.

And I want to thank the superintendent for creating a budget.

They're prioritizes not only children, but prioritizes what she heard, what we heard and community gatherings.

>> Ok, so we heard Lozano expressed some skepticism about not making the pension payment to the city.

What are the implications of that and how house I got to go down with Mayor Johnson City Council yet blowback is definitely possible if the city is not going to get that 175 million dollars from CPS, why would it then turn around and give it additional to funding to help close the district's budget cap?

The city obviously has its own funding issues in its own budget to take care of.

So it's not getting that money.

It could cause a major problem with the city.

There could be huge pushback from council members from Mayor Brandon Johnson about this as the decision from the proposed students are actually returning to the classroom next week.

What happens next?

When suspects are going finalize?

There's board meetings public budget hearings next week.

But the board is set to vote on the 28th.

The state law requires that the district have balanced budget in place by 29th.

So they're really cutting it close.

But the 28th is when they're set to vote on this proposal came that Masterson unknown keep an eye on it for us next week created.

Thanks, Alright.