Chicago Schools Face $732M Deficit: Classroom Cuts, Focus on Special Ed Staffing
May 12, 2026
To address the shortfall, CPS plans to reduce regular classroom teachers next year, which will raise class sizes as part of deficit mitigation.
The staffing shifts will be driven by changes to the district’s staffing allocation formulas.
Analysts and stakeholders question whether city funding will remain adequate, with Civic Federation and CTU urging state action to protect school funding amid other competing costs.
A needs-based budgeting approach faces strain in lean times, risking larger schools absorbing more cuts due to enrollment shifts and staffing formulas.
Regardless of scenario, cuts at the school level are expected, challenging the approach that uses an Opportunity Index to guide funding, which has widened gaps between larger and smaller schools.
The district will raise the student-to-teacher funding ratio by one per grade level, resulting in higher teacher-to-student ratios, with high-poverty elementary schools slated for 1 teacher per 23 students next year.
Chicago Public Schools is confronting a projected deficit of about $732.5 million for the 2026-27 year, prompting cuts to campus funding while increasing focus on special education staffing.
District officials reiterate a commitment to staffing goals for high-needs schools and a recovery-supportive model, while recognizing that budget cuts will affect teaching and student-support roles.
Budget planning remains contingent on Local School Council decisions, with final school-level budgets due by June and the district budget not finalized until mid-summer; further cuts may appear in central offices and networks.
Central-office and network budgets, as well as discretionary spending decisions by principals and LSCs, will be clarified closer to mid-summer as plans remain preliminary.
Some smaller schools may lose assistant principals, while there are planned increases for special education teachers, classroom aides, and therapists, though specific figures are not disclosed.
Officials stress that released information is preliminary and school-level budgets can change as principals and LSCs allocate discretionary funds to protect classrooms, with central office figures to be disclosed later.
Summary based on 10 sources
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Sources

Chicago Sun-Times • May 12, 2026
CPS plans to cut teacher positions, raise class sizes in bid to shrink $732 million deficit - Chicago Sun-Times
ABC7 Chicago • May 13, 2026
CPS faced with tough choices as preliminary budget shows $732M deficit, enrollment drops
Chalkbeat • May 6, 2026
Chicago Public Schools campus budget could bring cuts amid massive deficit
Chalkbeat • May 12, 2026
Chicago Public Schools tightens staffing in school budgets amid massive deficit