Chicago Public Schools’ plan to close a looming $1 billion budget deficit relies mostly on one-time reserves–71 percent–according to the district’s proposed operating budget, released today.
The reserves will save CPS $697 million in fiscal year 2014. But the $1 billion hole could open again in fiscals 2015 and 2016–thanks to more increases in pensions and salary costs, and decreases in revenue, the district says.
Below is a graph showing the district’s full plan to close the gap.
- One-time reserves ($697 million)
- Central office, operations, administration reductions ($112 million)
- Increased property taxes ($89 million)
- Core instruction reductions ($68 million)
- Better than expected budget performance in FY13 ($12 million)
Chicago Public Schools plans to close a looming 2014 budget deficit largely with reserves.
CPS will release the budget for public feedback soon.
