Chicago City Wire

Jeanne Ives, founder of Breakthrough Ideas and former legislator, said that the City of Chicago and Chicago Public Schools "are both bankrupt, and there's no hiding it anymore." Ives made this statement in a post on the social media platform X on March 12.

"This should be CPS and Chicago's "It's Happening " moment," said Ives. "They are both bankrupt, and there's no hiding it anymore."

According to a report from the Chicago Tribune, there is a push by the City of Chicago to have Chicago Public Schools (CPS) refinance $240 million in debt to balance its budget. The school district faces a deficit of at least $500 million for the upcoming school year due to increased operating costs and reduced federal funding. Senior aides to Chicago Mayor Brandon Johnson indicated that the district could potentially access funds from an existing debt service fund and repay it using expiring tax increment financing money over two to ten years. However, Lewis Greenbaum, Board of Education bond attorney, warned CPS board members via email against this strategy, stating they found no authority in state law or constitution for issuing debt to cover a budget deficit.

Screenshot of Jeanne Ives' March 12 post on X | X

The fiscal year 2025-2026 budget for CPS amounts to $9.9 billion and was approved in July. The district described it as "a key milestone" towards creating a more equitable school system. This budget shifts away from Student-Based Budgeting and establishes standardized positions and resources across all CPS schools. CPS has cited inadequate state funding as a significant challenge in balancing its budget and reducing its deficit. Additionally, CPS is underfunded regarding teachers' pensions and is uniquely required among state districts to fund its own pensions. The operating budget stands at $8.4 billion with an additional $149 million allocated for schools.

On March 12, the Chicago Tribune reported that a proposed amendment from the CPS school board might permit the mayor’s office to secure a loan on behalf of CPS. This amendment includes provisions that if CPS cannot balance its finances with additional funds from Chicago's taxing districts, other local revenue sources may be considered, including other entities incurring debt on behalf of the district. The board will review this amendment at its meeting on March 20, where it requires approval by two-thirds of the 20 members' votes.

Jeanne Ives is an American politician born on October 4, 1964. She served three terms in the Illinois House of Representatives for the 42nd district from 2013 to 2019 and ran in the Republican primary for Illinois Governor in 2018 but narrowly lost to incumbent Bruce Rauner. In 2020, she was the Republican nominee for Illinois' 6th congressional district but was defeated by incumbent Democrat Sean Casten. Currently, she hosts "The Real Story with Jeanne Ives," a radio show airing live on Sunday evenings on AM 560 The Answer in Chicago.