Chicago City Wire

Paul Vallas, former CEO of Chicago Public Schools, has attributed Illinois' fiscal challenges to decisions made by the governor. He pointed to optimistic revenue forecasts and one-time financial maneuvers as factors behind the new 4% agency reserves. Vallas made these remarks on the social media platform X.

"The governor who cried Trump," said Vallas, Former Chief Executive Officer. "Pritzker only has himself to blame for Illinois fiscal woes. While the governor claims the state's budget is balanced, the IGA's own forecasting commission (CGFA) asserts Pritzker's revenue estimates are inflated by $500 million and he relies on $627 million in mostly questionable one-time revenues. Under his watch, Illinois has become the highest taxed state in the country."

In late September, Governor JB Pritzker issued an executive order instructing most state agencies to identify immediate spending reductions and reserve 4% of their Fiscal Year 2026 General Funds appropriations. According to Pritzker, this decision was prompted by anticipated fiscal headwinds related to federal policy changes and tariffs. However, Republicans have argued that the order reflects an already strained budget. Agencies are required to propose efficiencies within 30 days and hold back spending in preparation for potential revenue shortfalls, setting the stage for a broader debate on Illinois’ fiscal priorities.

Illinois’ enacted FY2026 budget amounts to approximately $55.1 billion in spending and relies on a revenue package that includes over $700 million in new taxes along with more than $500 million in one-time revenues, according to nonpartisan reports. Analysts have noted that slowing collections in key categories have increased scrutiny of the budget's structural balance and durability. The mix of recurring and nonrecurring resources will influence midyear adjustments depending on economic performance and federal actions.

The state's revenue outlook was revised downward during 2025. In May, the Governor’s Office of Management and Budget reduced its FY2026 revenue projection by about $500 million to align more closely with estimates from the General Assembly’s Commission on Government Forecasting and Accountability. This adjustment reflected softer expectations for income, sales, and corporate receipts amid a cooling economy. Variances between executive and legislative forecasts can complicate budget planning, increase sensitivity to monthly receipts, and necessitate reliance on reserves or spending cuts if collections fall short.

Vallas is recognized as a veteran public-sector executive with experience in education administration. He served as CEO of Chicago Public Schools from 1995 to 2001 before leading the School District of Philadelphia and Louisiana’s Recovery School District after Hurricane Katrina. Earlier in his career, he was Chicago’s budget director under Mayor Richard M. Daley, where he earned a reputation for crisis management and fiscal planning. Vallas later ran for Illinois lieutenant governor in 2014 and for Chicago mayor in both 2019 and 2023.

Chicago Public Schools (CPS) is the nation’s fourth-largest school district, serving over 300,000 students across numerous schools. Governed by a Board of Education, CPS manages K–12 academics, specialized programs, workforce initiatives, a multibillion-dollar operating budget, and an extensive capital plan. The district prioritizes literacy gains, equitable funding, student safety, post-secondary readiness through career pathways, International Baccalaureate programs, and selective enrollment options across Chicago’s diverse neighborhoods.