If everyone can kindly take your seats, we can begin the meeting. President Harden, before you begin today's meeting, I would like to read a few announcements. Good morning. and welcome to the August 13, 2025 ARK meeting. Before we start
the meeting, I would like to share a few safety points and next meeting announcements. Please note that the primary exit and entrance to the boardroom is the door which you use to enter this morning. If you are leaving the room, please use this door. The restrooms are outside the boardrooms door boardroom doors to your left.
During the meeting, we ask that you keep all aisles and exits clear. If you need any assistance during the meeting, please wave the attention of one of our security officers. Please mark your calendars for the upcoming hearings and meeting. The board is conducting two public hearings
regarding the FY26 budget on Tuesday, August 19th, 2025. First budget hearing is at 1:00 to 2:30 p.m. The second budget hearing is at 4:30 to 6:00 6:00 p.m. The next board meeting is scheduled
for Thursday, August 28th, 2025 at 3:00 p.m. Please note the later start time. The two budget hearings and the board meeting will be held at 42 West Madison Street Garden level boardroom. For details on how to register to speak or observe at the budget hearings and board
meeting and to learn about the speaker lottery process, please visit the Chicago Board of Education website, cpsb.org. If you have any questions about registration or public participation, please contact the board office for assistance. Thank you for joining us
today. President Harden, we are now ready for you to begin the meeting. Morning everyone. Welcome to the Chicago Board of Education Agenda Review Committee meeting. Today is August 13, 2025. I'm President Shan B. Harden. On behalf of my fellow board members, thank
you for joining us today. We are holding today's agenda review committee meeting in the boardroom at the CPS Loop office, 42 West Madison Street Garden level. I would like to note that board members and senior leadership are physically present in the boardroom. Registered
speakers may join us in person or virtually if they've opted to do so. and registered observers are joining us in person. The agenda review committee meeting of Wednesday, August 13, 2025 is hereby called to order. Board secretary, please
call the role. Member Lozano, present. Member Smith, present. Member Lopez, who is joining us virtually via Zoom, present. Member Bole
here. Member Wallace present. Member Kuster present. Member Pope here. Member Rivas present. Member Rio Sierra present. Member Brown. Member Bannon present.
Member Gutierrez present. Member Biggs present. Member Thorakura present. Member Zachor present. Vice President Bautista present. President Harden present.
We have 17 members present. We do have a quorum. I'd also like to recognize Dr. King, interim superintendent, chief executive officer. Elizabeth Barton, acting general counsel. Charles Mayfield, Chief Operating Officer.
Thank you. The order of the meeting will be as follows. Poll participation, presentation of the fiscal year 2026 budget, discussion of agenda review committee meeting items 1 through nine. Then we'll recess. We'll reconvene from
recess. Discussion of agenda review committee meetings items 10 through 16. Go into cold session. We'll reconvene from cold session and then adjourn. Let's now proceed with today's public participation session. Thank you for joining and share your
comments with the board. In compliance with the Illinois Open Meetings Act, P participation, sometimes referred to as public comment, is the portion of the board meeting or hearing that grants district stakeholders the opportunity to address the board with their concerns and comments. Note that public
participation is a time for the board and CPS senior leadership to listen and hear from you rather than a time for dialogue with board members during or after your remarks. While we can't discuss personnel matters, Poke participation is a key component of
transparent governance and it provides us as board members as well as senior leadership an opportunity to listen to everyone who has signed to speak. This board takes equity of voice seriously. While we may not address your comments directly during public participation,
CPS leadership is always present at our meetings and are able to address concerns as follow-ups after the meeting. As a district and as a board, we also have many other spaces for authentic dialogue. For example, each and every one of our board members host
board office hours so that we can have a conversation. Please use our website cpsbboe.org if you want to meet with board members during office hours. We encourage you to take advantage of the opportunity to meet with board members outside of a board meeting. Thank you for your
attention and consideration. And as a reminder, union representatives will be allotted five minutes to speak before public participation and any elected officials will be allotted five minutes to speak after the conclusion of public participation. Board Secretary, please
share the rules of public participation. Thank you, President Harden. Members of the public who registered to speak were given the option to attend in person or via an electronic format. For those who prefer to attend by an electronic format, they were given information to access this meeting by dialing a number
and using their phone. We did this so that speakers with limited or no access to the internet or who may have weak internet connections could still participate using their phones. Also, members of the public may submit written comments for board of education meetings via the written comments form on the
board's website at cpsb.org or mailed to 42 West Madison Street, Garden Level. Written comments received between the day the public agenda was posted through 5 pm the day after the board of education meeting will be submitted to the board and published within five business days on our website at cpsb.org.
Speakers, please listen while I provide directions for public participation. I will call your name and number when it is your turn to speak. For speakers joining us virtually, as a reminder to unmute, please enter star six. Once you hear your name, please state your name for the record. I will then start the
two-minute timer. When there are 30 seconds remaining, I will inform you so that you can proceed to conclude your remarks to allow for the next speaker to begin. For anyone standing with the speaker, note that in order to comply with the city's fire code, please stand along the glass partitions on the marked
spots to keep aisles clear. Thank you, President Harden. Before we begin calling registered speakers from the speakers list, we do have union reps who would like to address the board. We'll begin with Jackson Potter, CTU vice president, who is here in person.
Good morning, esteemed members of the board, President Harden, CO King. Um, as a history teacher standing before you, have to say the start of the school year always gave me butterflies. I'm very excited. I think this year has the potential to be one of the best ever and
that is largely a result of co because of the historic agreements that we have come to to reopen libraries and hire librarians. 16 new sustainable community schools. Uh case workers for students with disabilities will be at record
highs. Students will have the best class size ratios in the history of the district and be able to focus better. uh and the prep time that that we won and negotiated together will expand recess to record highs across the system.
And it's hard to celebrate if if we're being honest because we're all still carrying and dealing with the burdens of past wrongs. And the historian in me, it's important to remember the last time a billionaire tyrant wre havoc on the system. Bruce Roner's reign as governor
called for a stake o takeover. It crashed the bond market for CPS, caused uh former banker Mayor Rahm Emanuel for the first time to agree to subprime loans that exploited CPS's financial vulnerabilities. And these were on top
of loans that occurred in the 2008 financial crisis aftermath that did the same. Toxic swaps. We've heard about these things. The bankers knew then what we know now that it was a setup and we can't let them off the hook for taking advantage of the most vulnerable. If
litigants can make Wells Fargo pay for the damage of false information and bad uh you know setup uh to pay for those past wrongs, we can do the same for Chicago's children. So I encourage relooking into affirmative litigation to renegotiate the terms and conditions of
that debt. Um, we are still paying it back and it's causing some of the pain that we're seeing. We can't afford to cut crossing guards leaving intersections less safe or janitors from school buildings or seeks uh that help
our most vulnerable students. And by the way, those workers are paid the least and represent the greatest number of black and latin female educators in the system. Their pensions are not a hot potato to be thrown around by CPS or the
city. It's an obligation. And as we heard from state legislators the other day at the hearing, CPS will eventually have to pay the full extent of that when it becomes a fully elected board. We don't care who pays
for it. Either way, it's a promise, not a problem. and we're able to win elected school board and the new formula for schools even in the midst of Roner's devastating actions. And those investments happened under his
administration. So it is high time for a Democratic trifecta supermajority at the state level to pay its fair share of the bargain and meet its obligations under that formula constructed back then so we can be fully funded equitably for the
first time. And so you are charting a budget that you'll have to approve. That's a decision about either going forward or backwards. The past would say please and thank you to the bankers or the Illinois General Assembly for
whatever pittance you could get of insufficient funds. Those days must be over. We all have to speak forcefully about the needs of our students and that the banks have profited mightily uh from underststaffing our schools. We can hold
them responsible, hold decision makers responsible for the exploitative practices, the insufficient funds and meet the needs of the students in front of us this year. We can't balance the budget on their backs because there's
always been two sides. privatizers and those who want to invest in our young people. And you're a school board, the first hybrid school board to make these choices on a budget. So, please show the way. Show the proper path, not the
ghosts of the past who have put us on this rocky terrain or the fragile situation we exist under. Uh that means a budget for what is owed Chicago students, not what we think we can muster. You have 30 seconds remaining.
Do not let the first budget of a hybrid board be one that continues the tradition of harming students and benefiting bankers. We need advocates. Your constituents are depending on you. Thank you. Thank you for your comments.
Before I call the next union rep, I do want to note for the record that board member Deberry joined the meeting at 10:48 a.m. Thank you. The next union rep is Tummaine Reeves, SEIU Local 73, director of CPS division.
Hi, I'm Diane Palmer. I'm speaking in place of Tmaine Reeves. Uh, I am the president of SEIU Local 73 where we represent about 12,000 workers in the Chicago public schools. And I I want to give you a little bit of a personal
story. Um, I came to Chicago in 2016. I came to work with SEIU Local 73 and work with the school system um around having our members uh have a better life in their union. So to some I may be
considered an outsider. It's true. I came here from another state, but I came with hope and love and considerations for the citizen of Chicago. So as I enter my 10th year here, I have eaten, drank, laughed, and cried alongside my
fellow Chicagoans. I came from Wisconsin, originally from Mississippi. Um just like so many Chicago families who made that journey north. And it is here in Chicago that I felt most at home. I have loved and felt loved.
That's why it saddens me that we are having conversations about whether and how we will provide the funding, staffing, and resources our public schools so desperately need. We say we are committed to public education, but we are watching our schools get
dangerously close to failure. We hold press conferences about sustainable schools. Yet, we cut hot lunches, reduce custodians, and change special education models so clusters get one seeker instead of two. We lay off employees
with little notice, force them to reapply for their jobs, reset their wages, restart their pension, and if they live outside city limits, we require them to move. And then we expect the same level of service from 750 custodians that used
to be done by 1,200. These are custoins. These are insiders and we expect them to like it, smile and keep going. I'm still new to Chicago and I'll admit I don't always understand the politics here, but
I understand something far more universal. I understand poverty. I understand mediocre schools. I understand mediocre public education. I understand starting over and being an outsider. And I know it doesn't have to
be this way. If you give our public schools a real chance, if you fund them adequately and pay our members fairly, we will give you the cleanest schools in America. We will cross your children safely at intersections. We will bust
them with care, with bus aids and monitors who treat them like their own. Our seekers will provide loving, patient support to students with special needs. Our security officers will protect them from every threat, including ICE. Our
members will show up because that is our commitment to you. We will do our part to pro to prepare Chicago's children to be the best of what this city can produce. But you must show up for us. That means the city must put tiff funds
toward education and stop making schools shoulder unexpected pension payments. No furlow days, no starting over. When workers are rehired, we want them to have the same thing they had when they left the same job in the same place under the same union. Let's fix that
broken system. Let's keep two seekers in special a education clusters and prevent over 600 layoffs. That means the state must allocate the funds it has already legislated. Let's stop playing chicken with our children. Show Chicago you
care. Show me and every so-called outsider that what it means to be a Chicago. Show the right that we protect our own. We feed them. We keep their schools clean and safe and educate them for the pro for the future. Prove that
Chicago really is the beacon that I thought it was when I came here. and what why others come here. And most importantly, let's show our youth that we truly do care. Let's look at these custodians that we're talking about laying off and think about what that
means to them. That they have to start over. They have to start their pensions over. They have to start their income over. They have to start their seniority over. And some of them won't be hired. And so that means that they have mortgages and car payments. You have 30 seconds. everything that you
need for your life. They have to start that all over again. Let's get to the table and talk about this and work this out in an equitable way. Thank you very much for listening to me. Thank you for your comments. Before I call the next union rep up to speak, um
I do want to note for the record that board member Bla1 has joined the meeting at 10:51 a.m. The next union rep is Greg King, vice president for SEIU Local One. Good morning, board president and madam
CEO. First, my name is Greg King. I'm from SEIU Local One, vice president and institutional director for Local One. SEIU Local One represent 50,000 workers across the Midwest. We we also represent
30,000 with 30,000 within Chicago. Um I'm today I'm here to bring to your attention that what CPS have done and also Dr. king by displacing 1,200 of local one
custodians. Last year, CPS cut 300 custodians jobs. Now, just weeks before our kids return back to school, they cut another 500. In two years, they cut 800 janitors within the school system. It is
impossible to get the schools clean. this this year decision of cutting all 1,200 of local one custodians without a notice without a plan and not without a real solution. We ask that you all come to the table
and come to come to the table with local one local 73 come to a real solution to make this work for our kids. It's not going to be clean. It's going to be dirty. You already did cuts already and now you want them to clean
with only 750. It's not just for our kids. It's also for our teachers, whoever walks into the school. We just want to make sure that our community is safe and we talk about our black and brown kids. Look what you doing to our black and brown kids and
our minority companies, putting them out of business. So I ask in good faith as you all rethink this and let's come to the table and talk and do what we need to do for our community and our families. Thank you.
Thank you for your comments. President Harden. We are now ready to call speakers from the speakers list and we will begin with Alexis Wadd number one. Alexis Waddle, speaker number one, please approach the podium. Those that
are standing um to support the speaker, please stand on the marked spots along the glass partition. Hello. Please stand along the glass partition in the marked spots so that the aisles are not blocked. Thank you.
Please proceed. Hello. Thank you. Thank you to the board, madame CEO, and the president. Um, my name is Alexis Wadell, and I'm here to urge the board to ensure that there are no cuts, no closures to
our schools and our black and brown communities. For too long, we have disinvested in our schools in a number of ways. And now we are at a point where we're looking at this $734
million deficit as if it's our problem. And we do not want to continue to have the issues and the hard decisions begin and stop in our communities. They are not solutions for our children. And as a mother raising three early learners and
one that has been grown in a CPS elementary and high school, I want to have the opportunity to walk them to school from my home. I did not move back to Chicago to be concerned about whether or not the school near us would be open
or the teachers in it would look like them. I move back so that I can create that opportunity for them. Build that pride in them and allow them to contribute to their community as the great learners that they already are.
Allow them to contribute to our success in their community. Thank you. Thank you for your comments. The next speaker from Austin High School is Jacqueline Reed. Speaker number two. President um Sean Harding and CEO Dr.
King. I take it a privilege to be here today to represent our interest in educating our children in their own community. And I just want to say that I've lived a long time and I fought in the civil rights movement in Mississippi to uh ensure that we had quality
education. And we did get quality education in Mississippi, one of the poorest states in the union. And that education allowed me to come to Chicago and attend the best school here, University of Chicago, and and be at one of the top of the classes. And so I just don't understand
why one of the poorest states in the union can educate our children in their neighborhood and we can't do it here in Chicago. It doesn't seem right. And then you know I said okay well money seems to be the problem. So when they said let us
you know do something with lottery tickets. So we supported lottery because we thought if the money would come for education then they said well we need more money. We don't have enough money. We need to uh uh legalize marijuana and cannabis. And so I said okay let's do
that so we can have more money for our children. But we have constantly seen our schools close. our schools reduce the kinds of opportunities they provide for our children in terms of learning. Why is it that the other schools in other neighborhoods don't have that same
problem? Is it because we are black in Austin and brown people? We think that we ought to have as much opportunity as everybody else. So, I think taxes ought to be raised in Illinois. And I support the governor raising taxes in Illinois, especially on
on on on shelters uh uh in online advertising on tax shelters that's overseas and online advertising. And I ask you to support that, too. Thank you. Thank you for your comments. The next speaker from Austin High School
is Elliot Jackson, speaker number 19. Elliot Jackson. Sorry about that. Yes, ma'am. Good afternoon. Good morning. uh board, President Harden, Madame CEO, um my cry
look different. So, I'm looking at a disaster that was created not by our children, not by our communities. This was something that was created by the bureaucrats that sat in seats that look like where y'all seating. And we've
beared the burden in my community more than any other community in Chicago. So, I'm asking the board to stand with us as a community that says no cuts to a classroom, no safe passage cuts, no AIDS
cuts, no no janitors cuts. Our children deserve every opportunity that was given to every other community. And right now, we're calling on our governor, Governor Prrisca, to declare this disaster a
state of emergency. So that the same way when the waters came in in Austin and he declared it, we need our children to have that same protection from our elected officials. So we calling on everybody to call your state representatives, to call your
legislators, to call your senators, to call Governor Prrisca and tell them we need a session to address this. This $1.2 billion deficit is being carried by our children, our communities. So, I'm asking you, president. I'm asking you
board members to support us. Stand with us. CEO, could you please, you have 30 seconds, right? Yes, ma'am. Could you please make better decisions than your predecessor so that we don't be the ones that have to bury or carry this burden? Could we could we
hold y'all accountable to come as a consensus so that we can move as a unit? We can move as one to change the course and direction so that our babies don't suffer. Thank you. Thank you for your comments. Before I call the next speaker, uh I do want to note for the
record that board member Lopez has joined in person at 11:03 a.m. The next speaker is Vicky Kurs Kursidlo. I'm sorry if I mispronounced your last name. Speaker number three.
Good morning. My name is Vicki Kurszidlo. I am a veteran CPS teacher of 31 years and the proud mother of four children who attended CPS schools. As of July 1st, I serve as the recording secretary of the Chicago Teachers Union.
What's at stake in this budget isn't just numbers. It's about our children, every CPS students right to learn, grow, and succeed. It's about the 30,000 educators and staff working tirelessly to make that possible. And it's about
the thousands of other staff who have already had their positions cut or are worried that it will happen to them, too. The annual CPS budget crisis is the direct result of decades of underfunding.
Right now, CPS is $4,000 short of adequacy per student. That means a single kindergarten classroom with 25 students is $100,000 away from the resources it needs. Across
Illinois, we are more than 5 billion away from adequacy every year. And these numbers are even more alarming in the face of looming Trump education cuts. Underfunding is overcrowded classrooms, students with disabilities waiting for
the services they are legally entitled to. It's slashing music and art programs. It's libraries without librarians, sports teams without equipment, and 30 seconds. Students without basic necessities.
It's time to demand Governor Pritsker and the Illinois General Assembly to pay what's owed. And lastly, I understand certain members of the board are concerned about decorum. I want to be clear that as a leader, what is impolite
is what our students have been put through and what is at stake for them. Now, I for one won't be shy about standing 10 toes down for what our students deserve. We owe that to them. You owe that to them. You were elected
to serve our students in schools, not bankers, privatizers, or polit personal politic political agendas. Thank you. Thank you for your comments. The next speaker is Diane Castro, speaker number 14. Good morning. My name is Dr. Diane
Castro and I am the financial secretary at the CTU. I'm here today though as an alum of this district and the proud parent of two children in this district. Two children who are underfunded by $8,000. That's $4,000 each. That's my
family share of the $1.6 billion our lawmakers owe to CPS schools. I attended CPS schools. The decades of underfunding means that I did not consistently have a librarian. I did not consistently have a technology teacher and I didn't have the
experiences that many of my counterparts across the state did. I didn't even have recess. So imagine now 30 plus years later as the parent of two CPS children who also do not have a librarian nor the resources of their counterparts across the state. Imagine Lions Township being
funded at 143% adequacy where my own children are funded at 73%. I imagine you understand my frustration. We cannot afford to make the mistakes of the past. We need a board that says yes to advocacy and no to cuts. The contract
we negotiated provides class size relief to kindergarten classrooms with a parah at 23 students. We also negotiated a pathway to increase the number of bilingual educators. We told the city that their children are worth investment. We need the board budget to
reflect that too. You all have to make a choice. Will you invest in our future, our children, the children of this district, my children, or will you sign on cuts that allow my children, the children of this district to pay the price? So, I'm
compelled to ask, what conversations has this body held with other districts in this situation? I'm a unionist. I believe in solidarity. Have you spoken to the board members in Rockford, Peoria, Berwin? This year's CPS budget is an opportunity for you all
to show that you are willing to fight for these students, our students, my students, without additional cuts. We are eager to partner with you. Thank you. Thank you for your comments. Our next speaker is Peter Collins,
speaker number four, who is joining us virtually. Please enter star six to unmute. Hi, I'm Peter Collins, a English teacher at Victoria. Today's my freshman's first day, but this year when I saw their enthusiasm, my heart broke. See, last year we offered after school programs
like chess club, rock club, but now those programs are gone, lost to budget cuts. Last year, my kids could be spending their first day dreaming about joining the cheerleading squad or baseball or softball team, but not this year. Budget cuts. What pains me the most is one thing that hasn't changed. We won't be offering our multilingual
students the services they are owed and deserved. We didn't have enough money for them last year either. My students are here with excitement for their future, but you are failing to give them the tools that they need. That's why when I attended the ILGA hearing held by Brett Williams last month, I was so shocked by comments from board members
Kuster and Rosenfeld. They both had the opportunity to advocate for our children with members of the general assembly, but never once mentioned the decades of underfunding Chicago public schools. Board member Kuster, you called state funding a handout. Why would you call money for my students who come from Gage Park, Brighton Park, Marquette Park,
hardworking Chicago neighborhoods a handout? Many of the families in my classroom sacrifice to immigrate here. They work hard. They pay taxes. So I struggle to square rhetoric calling school funding a handout when the reality is that the Chicago is the economic engine of the state. We only receive back 90 cents for every dollar
we hear to Springfield. We send to Springfield. So to hear my plea on behalf of my students and label it a handout simply denies reality. Because here's the truth. An influx of resources at the state OCPS would allow us to offer after school programs like debate club, chess club, sports like baseball,
softball, flag football, and crucially match the bare minimum of what state law says we should be offering our multilingual and special education. You have 30 seconds remaining. Does this sound like does it sound like a handout or does this sound like meeting the bare minimum? Each student in CPS is underfunded by $4,000. Yet
members of this board have labeled calls for funding as divisive or adversarial. That terrifies me. If you, a member of the CPS board of education, won't ask for the money. The state's own formula says we're owed the money CPS needs to fund its schools, who will? We cannot
wait any longer. Our students may not have the attention of the governor or the legislature yet, but you do. What will you tell them, and who will you speak for? Thank you. Thank you for your comments. Our next speaker is Ivonne Sanchez, speaker number eight.
Good morning. Good morning, board members and CEO King. My name is Ivonne Sanchez, a proud CPS parent and a community member. I'm here because I am deeply concerned about the budget crisis facing Chicago public schools. I do not support taking a loan that our children
have to pay or repay in the future. I know that this crisis must be addressed. But too often our children are pay they pay the price for an unfair system where fundings rarely reach their classrooms. I asked myself, why pay high property
taxes if my neighborhood school remains underfunded and families like myself have to travel far to find equitably education for my children? District decisions have always been made for us and about us, but never included us. I
urge that the majority of CPS funings goes directly to the classrooms, fulfill pensions obligations to whom those have work directly with their children, and change the language about special education from an expense to an investment.
We also see the troubling patterns um Latino and African um communities pitted against each other with bilingual education threatened as a cause to cut rather as an assets to grow. Even at the Illinois January assembly hearing on CPS
finance, the lack of Latino representation reflected this division. True equity means seeing every student's culture, language, heritage, strength as a strength, not as a problem. This
budget cycle might might be ending, but our demand for accountability, equity, and collaboration is just beginning. Thank you. Thank you for your comments. Our next speaker is Molina Pereira. Uh speaker number 13.
Chicago. Nothing. for anos. forch. Gracias. Thank you. We'll have the statement translated. Good morning, members of the board and CEO King. My name is Pelina Pereira and
I'm the proud mother of two Chicago public school students and a member of Paris for Fathers for Education, a nonprofit for parents by parents. In the last few weeks, I've heard CPS members, unions, and organizations say things like,
"Parents say or parents want, but I didn't see actual parents." I appreciate the representation, but today, as a mother, I am here to tell you in my own words that we understand the great challenges you currently face.
However, don't forget that families are also living in this world dayto-day. You can point fingers in every direction, but in the end, the ones who pay the price are always the same. Our children, you tell us not to worry while you cut
and continue proposing cutting what little our schools can offer. An example, the modifications to special education. CPS may say that they're a change made in accordance to the standards set by the state of Illinois Board of Education. We, the parents, call them
cuts. I want to believe that we're all asking for the same fully funded schools. But I wonder at what cost? Our children's future education because our schools have clearly not received adequate funding for years. Something has to
change. This goes beyond funds, pensions, or taxes. This fight sounds like it's about who wins the grand prize and who ends up the villain. Know then that if we're going to be petty or greedy, parents are always going to choose our children first and foremost.
That's why again as a mother I say we need a change. We need transparency and we need a budget that truly fa places student first. If our children are failing it's because we're all failing at education. Thank you.
Our next speakers are from Interamerican, Marina Centino, speaker number Five. As a reminder, those standing with the speaker, please stand along the glass partition on the marked spots. Please proceed.
Dear member of the board, thank you for the opportunity to speak with you today. My name is Marina Santino and I am a parent at Interame. I'm one of the few parents with a privilege to have a flexible work schedule that allow me to be here. I'm also one of the few who
feels I can speak without the fear of retaliation. But I'm here today to be a voice for those who can't. For the past two years, CPS and this administration have been failing to protect the student and staff at IMS. It has been a year since our school LSC passed a vote of no
confidence in principal ZAS and Ted's months since the charges. Things are not getting better. This summer, we have seen a beloved employee fired and six teacher from six different grades. an LSC representative who has spoken
publicly included were reassigned to different grades level and notify one of the finite two days of the school year. None of them had requested this. Little to no rational was provided and the school community has still not been informed. There is a general climate of
fear and which prevent teacher and parents from speaking out. Parents get banned from the school for speaking up. teacher fired or bullied, lied about the budget cut for the employee termination when the position is posted again. Why has CPS been so silenced? First, we have
not been formally notified of the investigation into the principle that began in January. This lack of transparency is shameful. It is our right to know what is happening and we need to know the status and conclusion of this investigation to ensure our children are safe. How would
you feel if it was your kids? CPS has been pursuing remedial step with principal ZAS for the past year. We have seen network chief attend constantly our LSC meeting which is not really normal attempting to coach him but there there
is hasn't been any change in his behavior. He had just worsened bad decision lack of responsibility lack of respect for the LSC teacher and parents. He ignore advice and does what he wants. He only adjust his course after you have already caused harm to our students and
staff. The budget process itself was not a collaboration but rather an instance of the network shift having to force the principal to follow the rules and at the end Mr. Zas voted against it. The evidence is please conclude your remarks. Additional remediation has not worked.
So we ask you today to remove Mr. Zas from his position. Thank you. Thank you for your comments. The next speaker is Maria Ugarte, speaker number 11. Dr. King is CEO Pedro Martinez. political
symbiad. for the coordinator. Can I say it in English? Please do. Okay. Good morning, board members. Good morning, Dr. King. My name is Maria Lisarte, proud parents of a CPS graduate and a current CPS student and a proud local school council member serving for
over 10 years. I hope you had a restful summer. Thank you for showing up for our students today. This school year, I invite you to join us parents in the trenches to imagine what it feels like for interamerican school community waiting over a year for CPS to address
water LSC flag more than 12 months ago. We understand the importance of due process, but over a year, that's not due process. That's delay. And the Illinois school code allows for administrators to be removed pending investigation. That
didn't happen here. CEO Pedro Martinez failed to remove him despite the fact that the LSC took a vote of non-confidence and followed that up by pressing charges. Our voices were never heard. And here what's happened since then. Policy violation. Principal Juan
Saias signed a contract without LSC approval. I attended all LSE meetings. No contract was ever presented. Yet the program was advertised on the school website and emails to families. Retaliation. A staff member was laid off
under the false claim of budget cuts. Interamerican had no budget cuts. The real reason that staff members spoke out about lack of leadership. Teachers who have spoken up have also been reassigned as retaliation broken commitments. When
we receive a restorative justice coordinator position, principal Juan Saias agree on record to share final candidate resumes for LSC feedback. He not ignored that promise and hire whoever he wanted. While he might have
the authority, he shows zero interest in collaboration or shared partnership. And worst of all, he continues to grow the already existent existing lack of trust. Dr. King, our hope is now with you. The
question isn't whether the legal department will validate the charges. We are confident they will. The question is when will you remove him? At the June board meeting, we were told the community will hear from the law
department in a few days. It's now August. How much longer must our families and students suffer? This is not student centered leadership. CPS can take as long as it wants for the legal process, but do not do it at the expense
of children. Remove him now. Appoint an administrator of charge. Make the recommendation to this board so they can take a vote. And in the spirit of transparency, have the legal department respond to our LSC chair's email so the
community knows where things stands. Thank you for your time. Thank you for your comments. Our next speaker is Na de Da Roa, speaker number 17. Good afternoon, President Harden, Vice President Bautista, our school board
members, and interim CEO, Dr. King. Many of you already know me. I'm Naida de la Rosa, associate director of organizing at Kids First Chicago and more importantly a parent of a CPS graduate and a current CPS sophomore. In my role with Kids First, I have the
immense privilege to serve and work alongside CPS families, our most important and consistent stakeholders. I'm not sure if you have looked at the CPS um or chart anytime recently, but at the very top of that chart is not the mayor as many would
assume. It is in fact Chicago residents. As elected and appointed officials of our CPS board of education, your job is to serve and be accountable to families, not to city hall, not to the mayor, but to families, particularly our students.
Thank you, Dr. King for making the decision to protect classrooms by rejecting the 175 million MEABF payment and avoiding new highinterest debt. This decision shows a real commitment to putting families first even in the face
of intense pressure. Parents, students, and advocates have been clear in petitions, in public comments, budget roundts, and conversations that CPS should not shoulder this payment or take on risky borrowing to cover it. It means
a lot to see those voices reflected in the budget you're proposing today. We want to be partners in finding lasting solutions to close budget gaps in ways that protect schools. Parents and community members are ready to work alongside you to ensure our district's future stays strong. Every budget
decision should start with one question. How will this impact students? We um hope that you will take into consideration the impact it has in particularly to our black and brown students who have historically and continuously paid the cost of this investment.
On behalf of the families I represent, thank you and please put kids first. Thank you for your comments. Our next speaker is Felicia Lang, speaker number seven. Right. Good morning everyone. My name is Felicia Lang and I'm the chief strategy
officer at the Monasury School of Anglewood. I've been an ELLL teacher, an MTSS and assessment coordinator, and director of operations and maintenance. In every single one of these roles, the same story exists. Budget cuts rob our students of the education and facilities
they deserve. CPS has chronically underfunded their schools, especially charter schools within the district. CPS delays paying funds that are legally ours. And let's be clear, that's not just bad policy. It's out of compliance with Illinois law, which says
specifically charter schools are supposed to receive 97% to 103% of the PCTC. CPS hasn't met that minimum in years. Who pays this price? Not the central office, not this board. It's the children in communities with the
greatest needs. My school has 455 students and a wait list in Anglewood, a predominantly black and brown community. Our staff works nights, weekends, whatever it takes because we know our kids deserve everything. But instead of getting what's fair from the Board of
Education, we're told to do more with less and have more accountability around what we're expected to do. Every late payment, every missing dollar means fewer books, fewer interventions, and fewer opportunities for our students. It tells our children that
their education is negotiable. Right? That's all of this length tells our students, hey, we can discuss this when it really should just be a standard. It shouldn't be an seconds remaining. Law is clear. The moral obligation is even clearer. Fund all schools
equitably, including charter schools. Pay what's owed on time and meet the standards the law demands and the standards you impose on all schools within CPS, specifically charter schools. Do it now, not next year, not the next meeting. fight for our famil
family's rights because our kids can't wait and neither can we. All of our futures depend on it. Not just the future of our students, but our families and our state and our country and the world. Thank you. Thank you for your comments. Our next speaker is Sardar Cartel, speaker number
nine. Good morning. Good morning, President Harden and the dear board members and the chief. So, I'm from Concept schools. We have two schools under CPS, Horizon Science Academy Southwest and Chicago Met and Science Academy. And last time
we met with President Harden about the charter school funding disparities. I had shared documents with him and he had asked me how come how come the charters are getting less funding not equal funding compared to the CPS traditional schools and I have given I have proven
that the operational budget is totally different. We are supposed to get 97% we are getting around 80% in a mean in the mean in the meantime meaning that charters are funding CPS we are not supposed to paying CTPF deductions we
are paying about $2,000 per child we're not supposed to pay 11 point something% again the CTPF on top of our regular dues and that is about half a million dollar per school for us and totally
charters are getting about 4,000 less per child. And if you calculate the CPS's operational budget, it's about let's say roughly 10 10 billion and around 323,000 kids. The per child
cost of CPS is about 29,000 whereas the charters are getting around 16,000. Meaning the question is how come that charters are doing more with less? rather than like you should you can
compare it the 16 17,000 with the 20 29,000. So that should be the question and I know uh printing money is illegal. I I know that it's very tight. You are very tight. You are trying to you hear the emotions from all the people. We are
demanding justice. As long as you're just I know I trust your collective wisdom here. I'm sure all these wonderful smart people got together to solve some problems in Chicago. We are we are not asking more as charter schools. We are asking what charters are
entitled to. Just you give us what we are supposed to get. We will still deliver more and we are here to help not add more burden on you. Thank you. Thank you for your comments. Next speaker is Jessica Rofino speaker number
10. Good morning and thank you for the opportunity to speak. Also, thank you to the board, Dr. King and CPS staff uh for the time and commitment um that you are spending on making sure that all students are funded equitably. Um, I especially want to thank board member
Bole for meeting with us in Noble Leaders last week, specifically to talk about recent uh changes in special education funding, the reimbursement process when schools must add new positions to serve transfer students and newly identified students. My name is
Jessica Rafino. I've been here a few times. Um, I'm a proud Pilson community member and the director of charter school growth and support at the Illinois Network of Charter Schools. I'm here on behalf and of more than 50,000 of Chicago's charter public school students. The funding disparities within
the district are harming the very students and communities that need the most support. Over 43,000 of our students are economically disadvantaged and nearly 20,000 require special education or multilingual services. They deserve equitable resources yet yet must
succeed with less. Uh, special education funding is based on last year's numbers. Um, ignoring the reality that students needs change. When new students transfer in or are newly identified, charters must fill the gap on their own. Some networks have had to hire more than 20 new special ed positions in a single
year without receiving additional funding. As a local education agency, CPS is legally responsible for ensuring that all students with disabilities uh receive the services and supports they need, no matter which public school they attend within the district. Yet unlike district run schools, charters don't
receive centralized special education uh staffing or targeted funding midyear. So they meet those needs. Uh pulling from other critical supports to make it happen. This isn't just a funding gap. It's a barrier to equity. It sends the wrong message that charter students are less deserving of public investment
creates two systems within one district and one with one with what it needs and one with what is forced to make do. All CPS students deserve equitable funding no matter what public school they attend. And when we work together as educators, leaders, and a board, we can ensure every child in the city has the resources to learn, grow, and thrive.
Thank you for your time. Thank you for your comments. The next speaker is Karen Callaway, speaker number 12. As a reminder for those standing with the speaker, please stand along the glass partition on the marked spots. Thank you.
Good afternoon, board members, board president Har Harden, and interim CEO King. Um, if you don't mind, board president, I would like to allow our LSC student rep to
speak. Um, I do want to interject that according to our public participation guidelines, you cannot seed your time to another speaker. President Harden. Yes. Unfortunately, we're not going to be able to do that.
Okay. No problem. I I'll read in behalf of the local school council has written a letter in regards to um some of the situations that are happening or have happened at Kimboy currently. Thank you. Standing with me um are members of our
team um our admissions team and our support team who work in the main office. In behalf of the Kinwood Academy local school council, I want to convey our deep concern regarding ongoing unfair targeting of our principal Karen
Callaway and her front office staff in connection with prolonged residency investigation. For more than two and a half years, Principal Callaway, members of her leadership team, our boys basketball program, and the entire Kinwood community have endured intense public scrutiny. The extended highly
visible nature of this process has inflicted reputational harm, disrupted the learning environment, and inro eroded um eroded eroded trust in our school. Despite staff adherence to CPS enrollment requirements, the continued
publicity surrounding these inquiries have amplified the harm of students, families, and staff alike. The emotional and psychological toll has been profound. Each time an investigator calls or makes a contact, staff experience retraumat retraumatization,
forced to reexperience stress, anxiety, humiliation associated with allegations that are powerless to adjudicate. The cumulative strain has affected not only their well-being but also their livelihoods. Careers have been stalled, advancement opportunities chilled, and
family members seeking CPS employment have faced stigma and skepticism due to the shallow cast by these investigations. 30 seconds remaining. Given it is critical to underscore that residency fraud concerns are not unique to Kinwood.
Given these realities, the KHS LSC respectfully requests that Principal Callaway and her leadership and administrative staff be absolved from the penalty of instances of residency fraud that are found. They have consistently acted in good faith and
with due diligence to uphold the district's enrollment process and serve families according to CPS policy and state recognized documentation standards. Holding them personally liable for the matters outside their authority is unfair practice that damages morale, harms mental health
destabilizes livelihoods, diminishes the trust necessary for schools to function effectively. We urge the board one to formally acknowledge the prolonged harm this process has caused to Kimwood staff and community. Two, to ensure that district-wide residency enforcement
practices are carried with professionalism proportionally and respect. Three, provide clear protections to the front office staff following CPS policy cannot be alleged. Misconduct beyond their control. Thank you for your attention to this matter
and for your commitment to fairness, employee well-being, and a healthy learning environment for all CPS students. Thank you you guys. Thank you for your comments. Our next speaker is Jesse Bostic, speaker number 16, who is joining us virtually. Please enter star six to
unmute. Jesse Bostic, speaker number 16, please enter star six to unmute. I apologize. I'm here. Good morning. Uh, my name is Jesse Bostik and I teach fourth grade at Walt Disney Magnet School. I have students from all walks
of life in every neighborhood in the city and I'm looking forward to greeting my students in five short days. This year, however, instead of focusing all my attention on planning and beautifification, I'm forced to worry about how cuts at my school will affect my students.
I've already spoken to a custodian who has been with my team for the past year. They told me that they will be laid off in the coming weeks. After ensuring that my students have a freshly clean classroom for over a year, the position is getting cut, and this is far from the only one. There are similar concerns
about the lunch staff that welcomes my students and serves them more meals each day, knows them by name, and make sure no one misses lunch on a field trip. Now, some of them will be gone, and my students will be stuck with more prepackaged and processed food instead of warm meals that include fresh fruits
and vegetables. These may seem like, excuse me, these may seem like lowhanging fruit to quote someone from central office, but these cuts will hurt my students and steal from their school day. Even if these fall under so-called non-classroom cuts,
when the people whose work makes it possible for educators to do their jobs are no longer there, our whole community suffers. Students learn best in a clean environment and they learn best when they have fresh food to fuel their brains. These cuts will hurt my students
and they will not fix any problem. Austerity plans have never worked in the past. So why do we think they will work now? It is your responsibility as the stewards of Chicago public schools to fight for our students. It is time for
each and every member of this board to step up and demand the funding our schools are owed from the state. A number that averages out to $4,000 per CPS student. The rich got a tax cut they didn't need. Let them pay their fair share to fund Illinois schools. When you
go home tonight, I want you to think about the thousands of students throughout Chicago who are being shortchanged to the tune of 1.6 billion. Think about educators and students working together to clean classrooms before they can start learning and the burden families will face getting their
children fresh meals. Then ask yourself, what am I going to do? Thank you for your time. Thank you for your comments. The next speaker is Marielle Lauraniano, speaker number 18. Good morning. My name is Marielaniano, former principal of Prito Math and
Science Academy and current director at the Chicago Public Education Fund. I led a school through five budget cycles in years with district-wide deficits. In 2017, I cut staff midyear when expected revenue never came. That budget left
lasting scars, not just on a spreadsheet, but on a school community that had to work even harder to hold itself together. So, I know firsthand what it takes to keep a community whole when resources are pulled away.
That's why I want to thank this board and Chicago's school communities for the reinvestment in our young people over the last five years. And I want to acknowledge the tough choices you now face as you work to preserve that progress and pass a budget before the
end of the month. Co King has been clear. The deficit is $734 million. Yet in just six weeks, CPS leadership identified over 250 million in centralized cuts. That sends two
important messages. First, to city and state partners that the district is serious about managing its finances. And second, to students and families that protecting the school level experience is priority this time around.
Earlier this year, principles and their local school councils passed budgets with only what they truly need. Any further school level cuts now would leave them with impossible choices. You have 30 seconds remaining. Preserving those plans means schools can open on Monday, ready to welcome
students with the resources they counted on. We know reaching agreements with city and state leaders won't be easy. But neither was passing school budgets in the spring, and neither was finding a quarter billion in cuts.
We urge you to continue that hard work and we stand ready to partner as you secure solutions that balance this year's budgets and bring predictability in the years ahead. In just days, over 600 school districts will welcome over
300,000 students to their learning communities. Let's make sure they have the resources they need to succeed. Thank you. Thank you for your comments. Our last speaker from the registered speakers list is Tomas Castrehan. Speaker number 20.
Good morning board members and CEO. Um my name is Tomason. I am a first generation CPS graduate. I have been an elementary school teacher, a middle school teacher, and now a high school school teacher. Um, this summer I had the privilege to go from Albony Park to
Hedgewick uh with the CTU to speak about our public funding and how we need our state to fund every single school, not just for Chicago, but every single student in our state. And throughout these moments, I went through budget
hearings where CPS has said that special education is the leading cause for a deficit and pinning them as a problem. These are students. These are children. They have parents. I'm asking you guys to use your power,
your will, your ability to speak to legislature. Go speak to your senators, alderman, Congress people, and tell them that we need a special session. I'm doing my part. I'm not in my classroom. I'm not decorating. I'm not printing out my work right now. I am here in person
speaking to you so that you can go and speak to this every single person that you can to will them to make sure that our kids are funded. Not in Chicago, not in the suburbs, all of Illinois. I need you to use your voice. I need you to use your power to have conversations at
dinner tables. Go to parties. Do whatever you have to do. Wheel their ears. Get our governor. He lives in the Gold Coast. I can tell you, Aster and Gera, I used to be his neighbor. You have 30 seconds. Let him know that we need to be fully funded. Go stand at his door. Go ask him
for an invitation. Will his ear tell him we need to get funded. Our children are an investment. We are a public entity. We are not a business. We have to remind ourselves, you are public servants. I'm a public servant. I am here doing what I need to do for my kids. I'm giving my
voice to them. It is your turn to use your voice to will your power your privilege to be sitted here. I'm standing here because I'm privileged to have my parents cross a border speak. I need you to use your power and tell
our legislators we need every single dollar for every single child so that they have the same privilege that I have that you have and the opportunities to be the best person possible. Thank you. Thank you for your comments. President Harden, this concludes public
participation or members. Are any questions or comments related to public participation? Member Smith. Yes. Uh, I just want to say uh Kinwood is a school in the 10th district in my
district and it's an exceptional school that meets and exceeds all of its five essentials. And while the Broncos uh academics academic excellence uh far exceeds and outpaces its recent athletic
championships. Uh from my multiple visits, meetings with students and district leaders. It's my understanding that Kinwood goes above and beyond uh their duties and obligations to ensure fair enrollment of students uh and their
enrollment practices. I am concerned about the appearance of investigative harassment of uh Dr. Callaway as well as other successful principles of color uh
that that uh lead over achieving schools that in this moment uh where we are to hold up the schools that are doing well where we heard about uh schools and leaders that are doing more with less we
just saw a leader that does more with less that doesn't deserve to be harassed and uh I will be calling on the board to look at practices of overachieving leaders of color uh and their staff that
uh are being harassed especially when they go above and beyond uh the duty that they're asked to do. Thank you, member Lopez. Thank you, President. Um, also just wanted to share as a proud daughter of
immigrants and also of parents that have been in union right now with what has uh the comments before us regarding custodians. It's something that hits home to me because many of those impacted our working-class families living paycheck to paycheck similar to my parents, similar to the community I
represent. So I urge the district to work in collaboration with labor to ensure that their seniority does get transferred over and also for those that have been displaced that they work to find an other opportunities by landing job because not not fair for these
families that this quick timeline is going to impact whether they can provide food on the table for their kids. Thank you. Member Brown. Yes sir. Uh, I want to support uh, board member Smith's statement. Um, I want to
I don't know if he'll allow me to, but I want to edit it a little bit. I don't think it's I don't think it's educators of color. I think it's black educators, uh, black administrators that have been targeted, uh, like the the the the ranks of black teachers have plummeted in
Chicago public schools. Uh and uh I do want to follow up about what's happening in Kinwood, but also what has happened to administrators and coaches that are black people across the district.
Extremely harsh and punitive disciplinary procedures which mirror what happens in schools. Black students are suspended, black boys suspended five times as much as their white counterparts for the same infractions. black girls 10 times as much. There's an
African proverb that says the truth is simple. If it's complicated, it's a lie. Lots of times we don't want to face our ugly and we want us to swallow it. We're not swallowing it. There is a targeting that is happening and we have to reckon with it. Uh and I'm saying that as a
former Bronco and and and and the evidence of that is how do you have a school that's been a top 20 school for 50 years and has never been replicated? It's never been replicated. that those practices have never been replicated on the west side and I'm committed to
making sure that that happens. Second point is I think that we need to follow up around Interamerican. They've been coming to this board for the last for months raising these issues and we have not gotten a clear sense of what's going to happen with this situation. I think
that we are supposed to be responsive to the public, not judgmental to the p of of the public. And last, I want to reiterate something that I said at the last board meeting. I think that um we have an issue as a district. We undervalue local school councils. One of
the ways that we undervalue local school councils is that they are not allowed to testify as elected officials. But they don't get a salary. They volunteer the largest base of workingclass elected officials in the world and we don't give them three minutes to speak as elected
officials. I think that should happen with local school councils and and I I want to get some guidance from a board president to understand how do I bring that issues to something that we have to grapple with as a board. Thank you very much. Member Boyce,
I concur with um the two board members that spoke previously and just to give some just to flesh out principal Callaway um and her situation. First, let's say Kenwood is, I think, the only
school um but um that has the enrollment of neighborhood kids, selective enrollment kids, and magnet school kids. All evidence, all data is showing that all boats are rising.
Kids aren't sitting across from a great school that they can't ever get into like at some of the other selective enrollment schools. It's an amazing model. They have sports teams. Um, some of the students um
didn't tell the truth on their paperwork. Um, there was a coach perhaps involved. The coach has since been let go, but they have been under investigation for two and a half years. If a kid lies on their paperwork, there's no way for the principal to know
that. It's not the principal's job to go to everybody's house and verify where they've been. It's not the administration in that office to it's not their job. So, we have to be careful of what they're getting accused of and
we have to be careful that we are protecting them from accusations. CPS doesn't have any protections for their for their staff that is under under this kind of scrutiny. Um, and so I and full
disclosure, my kid goes to Kenwood, so I have to say that because I don't want I don't I don't want it to come out any other way. But I do think that we have to consider how our staff is treated. It's disheartening to them to have their name in the paper all the time. Um and
if there's a pro a better process that we need to come up with so that we can check athletes um residency then they need to then we need to figure that piece out so that these administrators who are doing an
amazing job at educating our kids don't have to go through all of this um scrutiny um through the media through um as principal Callaway said they're not making advancements in their career. You know, people are there's all sorts of
spotlights on and that's only one component of what that school does. And also to co-sign um um the remarks on Interamerican, I'd love to understand
the rules of how um LSC's can make res recommendations that the principal be removed. What What is the process for that? I'm sure it's all written down somewhere, but if someone could brief me on that, that'd be really helpful. Thanks,
Vice President Bautista. Um, it's been a really tough uh couple of months, uh, dealing with this budget issue and taking a deep dive on all of the decisions that have been made by
previous leaderships that got us into this huge problem. Uh, our schools are in crisis, not because we lack the will, but because we're being starved of resources that our kids deserve. Every child in
Illinois has the right to get the resources that they deserve, to have a fully funded, highquality education. Yet, millionaires in Illinois are going to get to keep more money thanks to the so-called big, beautiful bill while our classrooms are facing cuts. That's never
okay. This is completely unacceptable. We need the state to deliver on our fair share now, not just us, but across the whole state of Illinois. And we need these tax policies that put our kids um
that that that's going to put our kids before the profits of these rich of the rich. We needed this district to make these right these choices now. Uh we cannot wait and I don't want to keep asking our families to pay for
these previous leaders mistakes. There's no more excuses, no more delays. We need to fund our schools and that's what I'm prepared to do as vice president of the board of education. Member Wazano.
Yes. I too would like to tell all those that testified today that we hear you. I heard over and over again, please don't put the burden on the black and brown children that have already been deprived for so many years and underfunded.
And I hear you when you say the schools need to be safe. Uh that means that those that have the jobs that ensure safe passage, keep our schools clean and healthy and with good food, all of that, we hear you. So this is the challenge to
all of us. But my commitment is to to work with my colleagues here and find the way so that we can ensure that our children get a worldclass education. Gracias. have any more questions or comments from
the board? We'll now proceed with the business portion of the meeting. Mike Sakowski, thank you. Thank you, President Harden. Good morning, members of the board. My name
is Mike Sikkowski. I'm the chief budget officer for Chicago Public Schools. I'm going to give you a presentation today on our proposed FY2026 budget, which will be posted later today. We've talked a lot about our deficit of
$734 million. We've talked a lot about the need for additional revenue. Um, and I want to start today's presentation by reentering us on what is most important here and what we're trying to protect. We have had some of the strongest
academic recoveries from CO 19 in the country. And even prior to the pandemic, we were on the right track. We see here that our record 84.1% 2024 four-year graduation rate, a record
CPS high. We've also seen this percentage of graduates enrolling and persisting in college um increase to record highs. More than half of our CPS graduates earned an early college and career
credential in 2024. We've seen in grades three through eight reading proficiency, we've seen those scores increase over 10 percentage points in post-pandemic growth. Usually these scores shift by a decimal, sometimes a
full percentage. You very rarely see doubledigit growth and that's what we've seen over the last two years. I also want to underscore that growth is up among all of our priority groups. Black students leading the pack and
ahead of the curve in our reading gains. We've also seen growth, albeit more modest growth in math proficiency, but we're still moving in the same direction and our black students are still leading this growth. Our
students have made incredible academic gains and we need to sustain that momentum. Our challenge in this has been solving our $734 million deficit amid our growing costs and our revenue shortfalls.
With that, we will be proposing today a budget that protects our schools. And despite the challenges posed by these persistent revenue shortfalls, growing costs, and a deficit of $734 million, we have outlined a balanced FY26 budget
that will protect the progress made by our students. This budget fully protects school budgets. It avoids the risk of beginning of year or mid-year cuts to schools. It funds all of the district's
commitments to its labor partners and it avoids furlow days. It also avoids borrowing measures that would adversely impact CPS's financial future. Finally, this budget defines that CPS will reimburse the city of Chicago for
the MEABF contribution contingent on additional state revenue, additional TIFF surplus revenue, or other local resources above budget assumptions. I want to spend a few minutes talking about our budget as a whole and laying
some context around the $10.2 2 billion that is included in our FY26 budget. The numbers that you'll see on the next few slides are as of July 2025. So after the first round of deficit reductions when we had talked at the last at last
month's board meeting. This budget had 10.25 billion with it which matches our final proposed budget for FY26. And I want to highlight that there's an unrestricted portion of our budget which we can address to make progress on our deficit, but there's also a portion of
our budget that is restricted and that cannot be addressed to be able to make progress against our budget deficit. And this limits our ability to make reductions and to make choices as a district that do not impact schools. When we look at only the unrestricted
portion, we see that unrestricted portion is 5.43 billion. And this includes our central office administrative functions, our citywide support and programming for schools and our direct funding to schools. The restricted portion of our budget is
$4.82 million and includes the categories listed here. And I will go to the next slide to walk through each of those. Here we see what our restricted expenditures look like totaling $4.82 billion. And again, I referenced that
this is the portion of our budget that we do not have the direct ability to control for different reasons. Um, first I'll start with our biggest cost, which is pensions. Our teacher pension costs are required by state law, and our
budget also always reflects the full actuarial cost of our non-teer pensions. Secondly, our debt service costs totaling just over $1 billion. This is our required principal and interest payments on our existing debt
that are required through our agreements with bond holders. Next is charter school funding, which totals just under $1 billion. And this again is funding restricted by state law. The district is not allowed to cut this below statutory thresholds.
Next, we have our restricted grant funding. These are funds for specific activities. think prek, our lunchroom costs, CTE programs that cannot be repurposed for other activities or be cut to support deficit closing. If we cut these activities, we lose the
funding that goes along with it. Next, we have our capital budget, which totals $556 million. And while this could be adjusted or modified, the revenues that support our capital budget are not eligible to support our operating budget. Thus, it
would not provide operating budget relief. Lastly, we have $31 million associated with the district's insurance and settlements, um, which funds the insurance costs of the district plus our legal settlements that we pay out.
This leads us to the unrestricted portion of our FY26 budget that totals 5.3 billion. I will note that through June we had made $146 million of reduction across these categories that
avoided any reductions in direct funding to schools. We see here that direct funding to schools dollars controlled by principles and LSC's directly make up a vast majority of this cost just over $3.7 billion.
Beyond that, we have $1.46 46 billion included in citywide support and programming for schools that is managed centrally but funds resources and staff um that are supporting our students directly on a daily basis. Lastly, we have our central office administrative
functions which total $2772 million and fund the administrative activities of the district. We break down each of these categories in a bit of detail so we can be transparent and give some color around where our dollars go. First, we'll look
at our central office administrative expenditures totaling $272 million. Through June, in the initial $165 million of deficit relief we had done through that point, we had cut $48
million from our central office expenses or 15% of our overall budget. You see here on this slide how those dollars break out across our different functions and our different offices. Um I will highlight that the largest portion of our administrative expenses are in our
operations areas but particularly in our IT costs uh which are the cost of running a 21st century school district. Next I want to move to our citywide expenditures. So again, these are dollars that are managed centrally, but are providing direct support to our
schools and our students. There's $ 1.46 billion across this category. And through June, we had made $98 million in reductions across our citywide expenses or 6% of the overall total. These are dollars that are funding our staff,
programming, materials that are administered at the district level, but serving students across our city. You'll see the two two biggest categories here are the funding that flows through our academic offices which supports our sports, our afterchool programming, our
mentoring, our tutoring, our sustainable community schools, and all of our instructional and um student support activities that are managed centrally. You'll also see a big portion of this is related to our operational costs. This is the cost of maintaining our
facilities, transporting our students, serving lunches to schools every day, and all of the costs and the staff and the services that go into our buildings on a daily basis. On the operations side, our last category is our direct funding
to schools, which totals 3.7 billion dollars. As we've discussed before, we've kept this hole in the aggregate in the budgets that we've given to schools this year, protecting the investments that we've made over the last five years. When we look at where this money goes,
we see that it's heavily and overwhelmingly invested in our staff. If you look at the pie chart on this table, you'll see two green slices in the bottom right portion next to each other. These are the only portions of this pie chart that are attributable to non
full-time employee expenses. So, our non-personnel expenses and our part-time and extended day pay. Every other dollar in this table is related to a full-time staff member working directly in our schools. The last time I was up in front of you,
we talked about the progress that we had made on solving a $734 million deficit. And this is the slide that I shared showing that we had made $165 million worth of progress. With these actions completed, we still needed to identify
$569 million of additional strategies to balance the budget. I shared the prior slides highlighting the context around our budget to illustrate that 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. Through June, we had made $165 million in reductions. And you see here the detail on what we had done through this point. We made $146 million in department budget reductions, including the $ 48 million or 15% cut to central
office and the $96 million or 6% cut to citywide spending that I mentioned on the previous slides. We also leveraged $34 million of school-based grant strategies and programming adjustments to help with the deficit and save 12 million from a targeted more targeted
process for fall enrollment adjustments that we implemented in the past year. We are also planning to save $23 million in projected savings from our $40 million fund to stay within our contractual class size limits. The budgets that we
issued in May preserved and protected our teacher staffing levels and the ratios that are included in our new foundational and equity based school funding formula, which leads us to project that most of our schools will be able to meet class- size limits without
this additional funding and that we will not need the full $40 million to make sure we're meeting these commitments, which we absolutely. Beyond this, we also identified two additional liabilities during this period. A $30 million a need for $30 million for reserve for new special
education positions as new students arrive, new IEPs get written, and needs change throughout the school year and $20 million in a reserve for district-wide IT projects to continue to move us into the 21st century and to take undertake initiatives that will provide savings for the district in the
long term. Following June, as I mentioned in the July 24th presentation that I did, we engaged under the leadership of our interim CEO, Dr. Meline King, uh, under on an extensive community engagement campaign to ensure that the decisions
that were being made were driven by those who were most impacted by them. Over the summer, we hosted information briefings, in-person, and virtual feedback sessions, and issued an online survey where students, parents, educators, labor leaders, and community
partners could grow their understanding of our financial situation and offer solutions on how best to reduce the deficit. Several themes emerged from these conversations. By and large, CPS stakeholders said they wanted the
district to keep cuts away from the classrooms, as far away from the classrooms as possible, and avoid cuts that would diminish the overall student experience. They wanted us to work collaboratively with state and local partners to identify new streams of revenue to support our schools.
folks wanted us to ensure a more equitable distribution of resources across our schools, to resist any further borrowing that would drive up the district's existing debt, to forgo reimbursing the city of Chicago for non-teer pensions, to continue to engage
the community around budget decisions. That leads us to how we are closing the remaining of our $569 million gap. And following the community feedback sessions and faced with this remaining deficit, we've reviewed every line of
our budget to develop a plan that is student centered, that is equitable, and protects our schools and protects our students. What we are proposing to balance the budget includes the following. First is $126 million in additional
savings away from the classroom. The second is the application of $149 million in additional available revenues. Third, $29 million in accelerating debt refunding savings.
Fourth, leveraging $90 million in one-time funding sources available to the district. And lastly, $175 million from defining that the reimbursement to the city for MEABF is contingent upon additional state revenue, additional TIFF surplus
revenue or other local resources above budget assumptions. I will walk through each of these categories. The first starting with additional cuts away from the classroom. On top of the $146 million that we had already cut through June in centrally
managed spending, we have identified 126 million in additional savings in late July and early August as outlined here. The first is $50 million in savings from additional reductions to central office personnel, streamlining business operations, data
teams, professional development costs, and transferring some functions from the central office level to the network level to provide more direct support to schools. Second, we've identified $29 million in savings from repurposing existing state and federal grant dollars to cover
existing costs. Third, we've identified $10 million in savings due to a hiring freeze of central office staff. We will only fill vacancies that are missionritical or revenue related. Continuing, we've identified $10 million
less for incubation costs for our transitioning five campuses to become CPS managed schools as recent estimates have reduced this liability from $30 million to $20 million. This is not a cut to what we're doing. This is a more refined estimate on what this will cost
to ensure a successful transition for these schools in the fall of 2026. We've identified $7 million in savings from delaying centrally funded IT projects. $6 million in administrative reductions to departments and central programs that were substantially
expanded during the CO 19 pandemic. $5 million in savings from eliminating food and travel budgets for our central staff. $4 million in savings from a negotiated increase in employee healthcare contributions for staff making over $90,000,
$3 million in savings from reducing our marketing budget, and $2 million in savings from reducing the budget for nonUN employee raises. Next, we have identified $149 million in additional available revenues to help
balance this budget. First, we are applying the $45 million from evidence-based funding that was above our initial projections. Um, as we shared and as of data received on August 1st when the state released their full FY26
evidence-based funding or EBF allocations to all school districts, um, it showed that we returned to tier one as a school district, the tier of schools that is furthest from funding adequacy in the state's formula. This provided CPS $76 million in new funding
for FY26, which was $45 million above our previous projections for new EBF funding. Second is we are applying $20 million in projected grant carryover. And at this point, we project to have $20 million of remaining federal grant funding from
FY25 that we will be able to carry over to cover FY26 expenses. Lastly, we will be increasing our FY26 TIFF surplus revenue assumption by $79 million. In our initial budget outline,
we had assumed that the city would once again supply $300 million in TIFF surplus revenue to CPS. At this point, we are increasing that assumption by an additional $79 million to match the final FY2025 distributions that we received in TIFF
surplus. Next, we've identified $20 million in accelerating refunding savings um from our upcoming uh bond refunding. As we've discussed in FY26, we plan to issue 1.8 billion in new debt to refund
existing debt that will provide future savings for the district. This is a process we annually undertake to review and take advantage of opportunities for savings in the debt market and the opportunity this year is higher as many of the bonds issued at high interest
rates in the mid2010s are now callable. Our initial deficit assumed that we would be able to take advantage of $100 million in FY26 savings to help with our budget deficit. And based on the severity of our
situation, we are planning to accelerate 29 saving $29 million of savings initially planned for FY27 to help close this FY26 budget gap. Next, we've looked at one-time funding sources in an effort to make sure we're
availing ourselves of every resource we have available to avoid cuts to schools and to avoid furlow days. And with what we've found, we are leveraging $90 million in one-time funding sources to support the FY26 budget.
This includes us repurposing $65 million from the debt service stabilization fund. As a short-term strategy for us to avoid cuts or avoid unsustainable borrowing, we will use up to $65 million in onetime resources from the balance of this fund
to help close this budget gap. This is a fund that was established as a reserve fund to exist with inter to assist with interim fiscy year debt service expenses and temporary operating fund liquidity issues. It had previously been fully depleted and used to exist with oper
used to assist with operational expenses, but due to recent investment returns, it has grown enough for us to allow this single use. Second, we are planning to leverage $25 million in existing philanthropic funding. Continuing our approach of
examining every dollar spent and received to determine options to keep cuts away from schools, we're leveraging a major philanthropic donation that the district received in 2023, and we will use 25 million of this funding to help close the FY26 deficit.
Finally, the FY26 budget defines that CPS reimbursing the city of Chicago for the Municipal Employees Annuity and Benefit Fund or MEABF is contingent upon the district receiving additional FY26 state revenue, additional FY26 TIFF
surplus revenue from the city or other other local resources beyond our budgeted assumptions. Without a dedicated revenue source for this cost and given the financial challenges facing the district, CPS cannot make this reimbursement absent
additional revenue without short or long-term impact to our schools. So that is how we are balancing the FY26 budget. I want to spend a little bit of time talking about what this budget does. And first, it fulfills all of our
labor commitments. The strategies that we've taken to balance this budget ensure that CPS is able to meet all of our commitments to wages, staffing, and programming included in our labor contracts. On top of negotiated wage increases for
our teachers, our support staff, and our administrators, this budget proudly commits to funding new sustainable community schools, new dual language and world language programs, new athletic programs, along with additional librarians, tech coordinators, case
managers, bilingual coordinators, and other important investments. Our strategies allowed us to make good on all of these important commitments. Additionally, as I mentioned before, this budget also avoids furlow days, a tactic used in the past to provide
one-time savings for the district. We felt it was important to preserve the wage gains and protect the important work happening across our district. The FY26 budget also avoids risky borrowing strategies. We have not included adding to our $9 billion debt
burden as a strategy to close the FY26 budget gap. First, a market for debt for budgetary relief may not exist as the district is already issuing $2.4 billion in new long-term debt this year. This includes
1.8 billion in new debt to save $129 million through debt refinancing and reducing our overall debt service costs. and 600 million in new debt for capital projects and to reimburse the district for capital expenditures already
incurred. If CPS plan to borrow for budgetary relief but could not execute on the transaction, schools could be forced to make mid-year cuts. More importantly, borrowing for operating expenses would send the district into a downward spiral
of credit downgrades, higher interest rates, and steeper cuts to staff, program, and services in the future. When the district engaged in this type of borrowing from 2016 to 2018, CPS received 34 credit downgrades, going
from a double A rated bond to junk. What that means today is that we are now paying nearly $200 million per year for this crisis debt. If we had access to this funding for our classrooms rather
than to pay off this debt, we could hire at least 2,000 additional teachers. If we were to take out a $200 million loan for this year, it would cost the district 107 million to pay it back, which would add $37 million in debt
service costs to future budgets. This chart shows our credit rating history dating back to 2010. And what we see in this slide is that in the mid2010s where the arrow is pointing to CPS engaged in crisis borrowing
leading to our 34 credit downgrades and leading to us paying $200 million annually to pay off this debt. We are showing this slide to illustrate the impact of what potential borrowing for operating expenses could do to the CPS
budget and our credit rating heading into the future. I want to also highlight how this budget makes progress on our long-term finances in which we still have a significant hill to climb. When I came up here in July, we talked
about projected deficits reaching nearly $1 billion in FY27 and exceeding that in future years. After closing our projected budget deficit in a responsible manner that protects schools and protects labor commitments, our long-term budget
outlook is improved by $468 million in FY2027 and by similar levels in future years. First, actions that we've taken to balance the budget reflect a net $263 million of structural deficit relief,
primarily from structural cuts to district spending away from the classroom and our increased structural funding from the state. Because this budget defines that reimbursement to the city for MAABF is contingent upon additional TIFF surplus
revenue, other state revenue, or other local resources above budget assumptions. Our future deficits are reduced by another $175 million. And lastly, our jump back into tier one in the state's evidence-based funding formula adds an additional $30 million
in projected revenue to FY27 and beyond as we now project to stay a tier one district for at least the next few years. The chart I'm showing here highlights what our previous five-year forecast look like and what our updated 5-year
forecast looks like based on the actions that we've taken in the FY26 budget. Make no mistake, we still need to fight for additional revenue for our schools from all of our partners and especially
at the state level. But the budget that we are presenting today takes a big bite out of our challenges in future years, bringing our FY20 def FY2027 projected deficit down from $988 million
to $520 million and seeing similar levels of deficit reduction in our future. In terms of next steps, uh we will be holding two budget hearings on August 19th to gather additional feedback from the CPS community on our proposed
budget. And following these hearings, we will be presenting the balanced FY26 budget to you all for approval at the board meeting on August 28th. Thank you for um letting me make my presentation today. With that, I'm happy
to take questions. Member Smith. Yes. Uh, thank you for your presentation. Uh, Mike, I want to ask about the debt service stabilization fund, the $65 million. Uh, what is the debt service
stabilization fund and what was that money going to be used for if not for what we're using it for now? Going to let our CFO take this question. Um uh good afternoon board members. Uh
the debt service stabilization fund is was created per policy. It was created so I think many many years ago and the reason what is created is to make sure that we have funds when we needed to pay for debt service. Uh and so the funds
were there in case the the debt service payment was short that we were creating kind of a rainy fund to to upset what was short uh on the payment of the debt service. So it was like a rainy day fund that we had that we can apply now
right for debt service but it can be used for operations had been used in the past I think in the 2017 18 it was used it's a one-time fund then it get depleted so because in the last two years we have debt service and we have
very good returns on investment the fund grew again and then we're using what we have in the fund to help the 2026 budget now it goes back again to low levels and then we have to wait for it to grow again. So it's not a fund that's have
always money, it has to grow. Now it's in the 65 million that we're using to transfer the funds to uh to the budget. So in a way in a sense if we in the future need some debt service relief, we don't have enough money in that fund.
We're continue to grow the fund. Thank you. member Blae. Hi, Mike. Well, this has been a fun couple of weeks for you. Um,
so the MEABF payment, um, well, let's start, let's start with the the TIFF surplus. Um, the 300 million in TIFF surplus, is that guaranteed money from the city?
So, the city is required by executive order and through um governing governing executive orders to go through an annual tiff surplus process that releases uh money from tiff balances. At that point, those balances are distributed to the
taxing agencies proportionate to their overall share of the property taxes. We're just over 50% of that proportionate share. And so we receive just over 50% of the distribution. So you know that there's going to be 600 millionish released in tiff surplus.
We are not anticipating 600 millionish of tiff surplus. Not for us like the total so that we get half. That will be determined based on the city's budget process that will happen this fall. So we don't know that we're getting 300 million in tiff surplus. Right. What
this budget anticipates is CPS being surplused at the same receiving the surplus funds at the same level that we received in fiscal year 2021 last year. I'm glad you brought that up because last year we received a letter
from 26 28 aldermen who asked for out of the 300 million they gave us last year, they wanted 175 million for the MEABF payment. Is that Do you remember that? That was right. Right. Is that the right
numbers? Uh that was those were the numbers from last year. Right. Correct. And we opted not to make that payment. Is that correct? That's correct. So they gave us 300 million with the expectation of getting 175 million back
for the MEABF payment last year and we didn't do that. So, we're expecting the same body to give us another 300 million without any assurances that we're going to pay the MEABF payment.
Um, just just because. So the commitment in this budget is to make the MEABF payment if the district receives additional revenues, be they state revenues or TIFF surplus or other local resources above the budgeted assumptions that are
required for us to balance our budget. So but the 300 million that we receive, we're not guaranteeing it. Um so we're not guaranteeing the city that we're going to pay the MEABF payment. We're we're saying if somebody else gives us money, we'll give we'll give the city
that money. Is that right? We're planning to make the payment contingent on our receipt of additional revenues, right? And so TIFF surplus is determined um based on like how many TIFF projects they have. Um
they pull that number together based on how how many things that they're working on and and the alderman vote on the amount of tiff surplus. Is that correct? I believe the alderman vote on the city budget which includes that
alip surplus. Yeah. And it takes how many is it is it a majority vote? Is it like 26 alderman have to pass the budget? Do you know that? I'm not going to speak to the the city council voting thresholds on
I'm not but I think it's I think it's half right. Right. So, we already have 26 27 alderman that wrote a letter to us saying that they want they wanted us to be on the hook
for MEABF. Um, and now we're expecting to take some money and once again not paying back what they wanted last year, but also not paying this year. So, could they um I know you you can't speak to the city
budget, but they could just include the MEABF payment and then that's less money in surplus. Is that is that No, no, they could not they could not do that. They could not do that. Okay. Right. So,
this for me, this for me comes down to being a good partner. We have partners. We don't make our own money. We don't create our own. We don't tax. We need to be a good partner.
Um, and if the city is willing to put together and and you threw in an extra what it was, 69 million 79 million. Did you get assurances from someone in the city that the 79 million was going to because we don't have asurances on a 300, but we we just threw
an extra Where did Where did that come from? So the $79 million is not extra. That's actually matching what we received in fiscal year 2025. So we got a surplus of $379 total. Correct. Correct. And and they were expecting the
175 back. We didn't pay it. And now we think that they're going to give us another 379. And we'll just say we'll we'll find the MEABF payment um if somebody else gives us money. All right. So again, this for
me goes down to being a good part. This this just feels like bizarro land to me. These are our employees. This is their pension payment. How do we not pay our own employees
pension payment? Yes, the city used to pay it. They don't want to pay it anymore. So we have to pay it. There's literally labor leaders I think within the MEABF payment. Some SEIU members are included in that pension,
right? Like it's it's um it's office workers, it's janitors and so forth. Are they all in that MEAB payment? Yep. That's they're in the pension fund which is both guaranteed under the state
constitution and guaranteed under state law that it will be funded. So, we have we have labor partners coming in and and and saying we don't need to make a pension payment. I I'm so confused by
this in honestly this entire discussion. The city is paying millions in tiff or um on tiff projects. They're paying our water and sewer. Um they provided thousands of jobs for our kids. They
have teen activities. They are a partner in us providing for our kids. And when they're willing to give us money and they ask for something in return and we say no. So, we're not saying no. Our goal is to be able to fight for more revenue to get
more revenue for the district so that we can make the payment as anticipated in this budget. But if they have to pass their budget, and I think that happens relatively soon as well, they have to assure 50 aldermen that their budget is going to pass. So,
we're not confirming we're not helping them confirm their budget, but they're supposed to fill up ours. I um after we flaked on them last cycle,
listen, I we I went to an education meeting hearing and there was a state senator who had some strong remarks at the time. I wanted to say like something inappropriate, but I I dialed it back
because we have to work with folks. We have to be good partners. We have to collaborate. And if we're gonna act like we don't care about the city budget, why should they care about ours? I don't understand how this is
collaborative. I don't understand how this makes sense. I don't understand why we're not paying for our our employees pensions. I was literally on the phone with a friend and he was like, "They don't want to pay teachers pensions." I was like, "No, it's everybody else." Oh, they don't want to pay the lunch lady's pension.
Apparently, we don't think we're supposed to do that. I don't honestly for me, this is this is and the and the argument is that it's for the kids. Everybody's providing for the kids. The state threw in extra
money. Um they put in 300 I think it was 300 million extra in the funding formula, right? Like everybody's trying to help CPS and we're going to thumb our noses at the city and be like, "Well, we'll get your money if we can." This is
I I'm This is foolhardy to me. We have an a partner that is willing to help us and even maybe look for more sift tiff surplus. But that means that the infrastructure in the city has to go to
every alderman and maybe delay their tiff projects. Maybe say they don't get the tiff project. Maybe say scale back that tiff project because we need more surplus for CPS. And are they going to go and make those arguments when we
can't even take care of our employees pension payment? Thank you, Member Boyce. I'm almost done. President, I'll wrap it up. But let don't do that. Let us see what you got to say. Eight minutes. I can do what I want. Um
we and we have no intention on paying back the three the the 175 million from last time, right? That that's not in the budget. This budget includes the possibility of us paying the funding for this year. Got it. Okay. And gives and that is our goal to be able to do that.
I appreciate your time, Mike. Thank you, Member Brown. Thank you. Uh, President Harden, first I want Mike, I want to commend you. Uh, u you know, um, Madam Superintendent, I
want to commend you. It's not easy and you all have made you have demonstrated the willingness to cut away from the classroom. So that's clear in the budget proposal you've made. I just want to ask a few questions for clarity because often like ideology
moves some of our comments as opposed to like truth and I want to ask ask a question when did the statute that says 51% of the tiff surplus has to that must come to Chicago public schools when did that
happen? I'm not familiar with when the TIFF act that governs this was was established, but um and I want to be clear that the the governing legislation is not specific to a percentage, but it's a specific to how the funds get
redistributed is a proportionate share to the respective taxing bodies of which we are just north of 50%. So like 51 52%, right? Yep. Was last year the first year that that was enacted? No. have so last year. So usually we how
what was the amount of the tiff surplus usually that we receive historically like is there an average or something like that? So the amounts the amounts grown over the years as additional funds have got grown gone into the tiffs over the years. So in the mid2010s when tiffs were receiving about3 to $400 million
annually that amount was significantly lower in the 2030 $40 million as the amount that's gone into tiffs has grown and as pre as as as mayoral administrations have made more of a commitment to surplusing tiffs the amount has grown and so now there's
about 1.3 billion about over 260% higher than was coming in 10 years ago that's coming into these tiffs and the amount that we're receiving is substantially higher than it was before. The $379 million that we received in FY25 is a record high for
CBS. Is it higher than the 51%. No. Okay. So, what I what I would like to just raise is that there is a level of political will that is provided those
resources. Would you agree with that? I think these are political decisions. Yes. So I think the question that's being raised, we have to be solutionoriented. If if our goal is no cuts, then the question has to be
if we don't make the MEF nef the payment, if we don't make the payment, pension payment, then in what political reality world do we believe that a city council that does not like to give up
their tiff money anyway, that we're going to get 26 votes to give us $379 million and what or above that because we're going to need more than that. I do I'm just
questioning that logic because as we deliberate the you know the question has to be what is our solution? not ideologically what what kind of arrows we want to shoot, but what is our
solution that guarantees that schools like Austin that have been starved down to 120 students or schools like Douglas that have been starved down to 34 students when they used to have 600 students that those cuts won't continue to come to those neighborhoods.
So, that that's the part that's concerning me about what you all have presented. Um and I also understand that there is more appetite at the state level
um for some of the um transformative progressive revenue solutions that have been brought forward. Some some are more long-term, but then some like the digital ads tax that there are legislators in Springfield that say I
can take that. So, I'm just concerned that that's not a part of our projection. Uh I don't think we should be moving forward with a maybe. I think that we we should be committing to what it's going to take to make sure that we have a budget that
does not cut our classrooms and does not ruin the relationship with city council. I I agree with board member Blae. I think we have to be good partners, but then we also have to be like politically mature. We can't be we cannot operate as
if we can just say, "Well, it's your responsibility to do it." and that it's been a it's been our responsib and the legendary Jackie Reed I may say like we should be tipping our hat to her
whenever she walks in the room and she said you know there were promises made before and those promises are easily broken and they're they're often broken on the backs of black and brown neighborhoods and so I'm just concerned Mike again I
want to I want to applaud the work uh madam superintendent that you all have done it is significant but I'm concerned in regards to politically whether this is realistic and that's my concern. Thank you member Brown member Rivas. Uh thank you Mr. President. Uh Mike,
thank you uh so much for all of your work. I know it's it's a ton. Um and I'm sorry that uh you will be dealing with all of us um sounding like we're attacking you, but it's not you. Um it's the situation that we're in. And so, um, I just want to clear up some, um,
misconceptions or lies, um, that were just stated. Uh, and the first one being, uh, I want to make clear that, uh, pensioners in MABF, uh, of which I am, um, someone who pays into MABF as a city employee, um, they're still getting their pension payments. They're getting,
um, so all of our pensioners, our, uh, lunchl ladies, custodians, and then all the city workers um, who are in MEABF are still getting their pension payments. um us not paying the city uh does not mean that those pensioners are not getting their pensions right now. Um
you know my close family friends uh CPS retirees also an MABF they're getting their monthly pension checks uh thankfully. Um the other thing about um you know providing for our kids um you know here at the Chicago public schools
we are uh partners as we keep saying and it's not the sole responsibility of the Chicago public schools to provide for our kids. And so I am grateful that the city has programs like the mayor's one summer Chicago program for city for summer jobs. Uh that DFSS has so much
great programming um and provides out of school time funding uh for so many agencies. I worked for a nonprofit that you know got uh CDBG funding from DFSS for many years to provide for those programs out of school time. Um it's a team effort uh across all levels of
government um to provide for our communities. Um, so I don't think it's a sole responsibility of us as a board and us as a school district uh to provide for Chicago's kids. They're all of our kids. Um, and so I'm really grateful um that we have those types of partnerships. Um, in terms of I I don't
know how often uh uh we can reiterate this, but you know, we do get that or 51% or so of uh the tiff surplus. Every year the city does a tiff surplus. Um there is no uh mechanism right now to
give us less tiff money because they're mad at us. Uh it is just based if they have a surplus, that's what they're going to provide us, right? They they can make the the surplus less or more, but we also know that the city of Chicago has a 1.12 billion deficit. And
so we expect another record tiff surplus from the city. um those of us who are having lots of conversations with aldermen regarding that um they too will they they need to surplus uh to be able to balance their own budget um just like we are and so I do suspect that that
will still occur um and they'll have um so I do expect that that will still occur and so no matter what the appointed members of this board have been dealt or promised I am very grateful ful that we're
balancing this budget and ensuring that we're not making cuts to our classrooms. Um, that's going to be what's most important for us. Thank you. I won't go over my time. I do want to make a point of clarity though, member Rivas, just relative to
the amount of tiff surplus. Um, it's clear to me the city does not make its budget based on surplus. So, I just wanted to wanted to clarify that. that's directly from the the budget office specifically because I too had a
similar assumption and assuming that we will have that tiff um as part of our budget. I asked the question directly is that a safe assumption based on the need for the city to do the same and they said absolutely not. We do not prepare
our budget based on that um it's a variable number so they don't use that as part of their practice. So, I just wanted to wanted to clarify that before recognizing member Biggs. Thank you. Uh, Mike, Dr. King, I would
like to thank the entire team for doing the thankless and tireless work of putting forth a budget that does protect our students and it does protect our schools. Um, I thought it was important to go on record and talk about um
how excited I was at the beginning of this Maril administration. Um, because we really had an education mayor in office. Um, as someone who has committed my entire life to schools and to education, I thought that this was a
really important moment. Um, I was certainly more encouraged um by some of the work that came out of the transition report. Um, if we're being specific to this discussion in this moment, I know on page 63 of that report, um, it was indicated that the Chicago public
schools should not be paying into a pension system that had been underfunded for years and years and that state law said was the city of Chicago's responsibility and provided the city of Chicago with a revenue generating levy
um, in order to keep that fund solvent. So, as it pertains to this this conversation in this moment, um I think it's really important uh for all of us to go back to sort of the moments where we came from and that have grounded us in this work. Um and to once again um be
thankful and hopeful for those folks who have worked so hard to put forth this budget that really does center kids and protects our schools. Member Paul. Good. Uh let's see. Good afternoon, uh,
Mike. Thank you and Mir Slava and your entire team for what must have been a tremendous effort to achieve this, uh, budget report that you're presenting to us today. I feel sure that your three-year-old has been missing you during this time, and I really do
appreciate it. I am excited to see some of the things in there and some of the creative ways that you have approached things. I have a couple of questions. one is, and I've spoken with a number of state legislators in the last week, both
members of the House and members of the Senate, and you know, they've talked about possible increases to categorical funding. They've talked about a few different things, none of them humongous, but all of them potentially
meaningful. And we were talking about how we needed this money for the children. Now, if we go to them and say, "Oh, we need this money to make the MEABF payment," are they going to be motivated in the same way to find funds for us that they would
if this was funding to support the children? I kind of doubt that. It wouldn't excite me if I was a legislator from somewhere else to be uh paying the Chicago pension fund by increasing funding. Maybe I'm understanding it wrong, but that is a concern that I
have. I also share Ma's feeling that we are partners with the city. We are partners with the state. We're partners with parents, with community organizations, and with everyone. And that we have to make good on commitments
that we make. I think that it's fabulous that you were able to come up with a no borrowing scenario. And I do want to ask what would be the impact if we borrowed just the amount specifically required to
make the MEABF payment. So thank you so much and I just have to reiterate as a lifelong educator that the most important thing to me is that we fully fund our classrooms. And fully funding
our classrooms also means fully funding the services that our students use outside of the classroom. Whether that's crossing guards, whether that is bus attendance, whoever it is, because kids lives do not stop at the classroom door.
The schools that we seek to fund are holistic schools that meet the full needs of all of our students. So, thank you so much. Have a good day. Thank you for your question, board member Pope. And so, just coming back to what I said before on on the cost of a
loan that would provide $175 million. What we illustrated previously was what a $200 million loan would look like. So, we're in the ballpark of talking about something in that range. What we see there at this point is that it would cost the district about $107 million in
interest expense um over the period of repayment. Um, plus we would in future budgets have to repay the principal. So we'd see about $37 million in um future pressure on FY27 budgets and and beyond
as we pay both the principal and interest on that loan. That's a $200 million loan. OB, so that would be scaled back a bit if we're talking about something around 175. Member Wisano. Yes. Um, thank you uh for your report
and all the work you put into it. I too have a concern uh that uh just hearing from uh last year's uh board and CEO promised that if the city committed to give us the TIF in
exchange we promised to pay the 175 million and then we didn't do that but that was a surprise to them that we would reig and not pay right now. We're telling the
city, we're telling them upfront that we didn't pay last year and we're not going to pay this year, but we expect you to give us the money. I think that, you know, we're dreaming here. That's not the way things work. And I'm hoping
that there is a another budget um report that's going to add uh the payment uh because I I don't see how this is going to work. I've talked to some of uh the legislators uh alderman, etc., and uh
you know, this we're not going to get the votes to to get this through. So therefore, I don't understand why we're being presented this when it's to me going to fail. So we need to get um a
budget report that is more realistic. So but thank you for for this explanation. Thank you. And I just want to be clear. So this budget does allow for the for the opportunity for us to make that payment. Last year's budget that was approved in July of 2024 did not allow
for that possibility. So this year's budget allows for that possibility. We've been clear on the need for additional revenue from all of our partners, but especially the state um both now and going forward. And so if we are able to to achieve that revenue, this budget allows for us to be able to
make that payment. If we're so sure, then why don't why didn't we put in the budget that we're making our payment? If we're so sure of those revenues coming in, then why didn't we just put it in the budget and pay pay what we owe?
this budget. Again, it includes that possibility, but the dollars that we are certain of getting and that we can count on as we typically do in part of our budget process. We've made sure we haven't avoided cuts to schools. We haven't avoided furlow days. We've made
good on our labor commitments. And it again allows us to be able to continue to that advocacy effort for more revenue to make make good on all of our commitments here. Member Smith. Yes. Uh my my question, Mike, is what
percentage of the MEABF payment uh is Chicago public schools versus the city of Chicago? So CPS represents about 30 33% of the overall actuarial liability of the fund.
So the majority of this payment is for uh is not for CPS workers. Is that correct? So I want to I want to make sure we're clear on this because it does get a little bit complicated. CPS has just over half of current employees as
members of the fund. Okay. current employees today CPS is is just over half of the active members. Um but when you look at the actual actuarial liability and the obligation and what um the city's required to pay
every year for that we represent just about about 33% of that. Um our employees are some of the lower paid members that are less like less likely to vest in the pension. So our overall liability is lower. So legally the leg
legally the city is responsible for more than half of that payment. Correct. So legal or legally we're not responsible for any of it. Legally the city is responsible for the payment for the legally the city is responsible
for the payment. Okay. And it's so if we get a $298 million surplus and we're asked to give $175 million of it back, that really wasn't a $298 million
surplus for us. Is that correct? So we that would still be a $298 million surplus. the dollars go to different expenses and one of those expenses is giving 175 million back if we pay that.
Yes, that was not the case last year based on how the year ended. But yeah, so okay. So, you know, my whole thing is priorities over politics. 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 that prioritizes not only children but prioritizes what she heard, what we
heard in community gatherings where community members stood up and said, "We don't want to be responsible for that because the schools don't have the avenue to grow the revenue." Uh, I just saw President uh Jackson Potter say uh
he doesn't want a budget. Let me I'm going to quote him directly. He wants a budget that doesn't benefit bankers. So, if we pay that and we have to get a loan, even the CTU admits that would be a budget that would benefit the bankers.
Um, I guess look, I don't have any friends on the fifth floor of city hall. I've never been called to the mayor's office to be asked anything. So, you know, I'm just in the neighborhood with the parents and the children that see
the budget that we are being presented today as something that prevents cuts from their classrooms. One of the things, and I'll end here, I just don't understand. I don't understand why the same energy we have for going to the
state and demanding that they fully fund our schools, why we don't have that same energy for the city. I I I don't understand why we're um why we're not uh
demanding the same thing of our TIFF dollars as we are of our state tax dollars. Uh it just seems um it it seems inequitable to me the way we're going about it. And I don't think, you know,
to to the point and and I'm ending here, I don't think uh member Kuster was saying that she didn't care about getting state dollars. I I I truly believe that what we're all saying is that we want everybody to pay and we
shouldn't be bargaining saying our alderman won't give to our schools. The state and the city should be happy to fund joyous, rigorous education. And I don't understand why we're playing the game that many agencies are playing with the federal government. We'll just give
in to Trump because he'll shut down our university. We're we're fighters here. We're community people. We don't bargain with our children. Thank you, Mike. Uh couple comments. Um Mike and team, thank you for all the hard work you guys
put into the budget. um really happy to see that not only uh did we make um begin to start to look at a budget not only for this year but also in years to come. So to show to see some progress
there was also very good to see. Um, my question for you and then I have one last comment after that is do you the $79 million in additional tiff is that from expiring tiffs or do we even calc do you even have that calculation
potentially of what that may look like? So the $379 million that we received in fiscal year 2025 is from the TIFF surplus, which is both the surplusing of existing tiffs and then the windown of the expiring tiff. So we don't have a I
don't have a breakout of what's in each, but based on the executive order issued in 2013 and the city's current policy around tips, the money comes from both existing and expiring tips when it gets surplus. And then my last comment for this body
in Mayor Johnson's educational report, page 63, and I quote, "The $175 million that the CPS pays us should be going back to CPS."
So why would the education mayor come down and shake CPS down for $175 million? Just doesn't make any sense to me. doesn't make any sense. Member Kuster,
President, um Mike, I just when we talk about the MABF payment, we make that not on a verbal agreement. We make it on an intergovernmental agreement. Correct. That's the reimbursement to the city is made based on an intergovernmental agreement. Okay. I just want to be clear with the
board that no one on this board voted last fiscal year to make or not make the payment. the item was completely pulled from the agenda. We didn't even take a vote. We just didn't pay it. So, none of us had a vote on whether or not we were going to make that payment. It was just
removed entirely. Glanced over. We moved on. We didn't address it again. And therefore, we kept that tiff surplus. So, let's just be clear about it. And if we decided to somehow alter this budget and to pay the $175 million for the
MEABF, I I would I would refer all of you back to what our research partners have shared with us about what those illustrative cuts would look like across our district because I'll tell you that board member Bannon and I would receive the third largest amount of cuts across
the city in district 1. So, let's be really clear that like choosing to pay this is taking money from those kids. We want to keep things student centered. We want to keep things about the kids. And we've received ideas of what this would look like across our districts as far as
cuts if we don't have the money to do it. And if we decide that nope, we're going to make this payment instead. We know exactly mostly what that will look like across our district. So, I would refer all of you back to that. Take a look at that. What does that mean for your district? What does that mean for your children? What does that mean for
your families and your communities as well? Thank you, member Lopez. Thank you, President. Um, my team, CEO Superintendent, thank you. Thank you for engaging in these conversations, especially with the community uh
reporting back. I one of the uh I do have a several number of questions and a lot of them is just clarification purposes. Uh I will start with one that I uh I learned through I will say like most of the general public that there were a set of briefings that happened I
believe yesterday uh including the CPS leadership with the mayor's office, city council members and potentially maybe some legislators. Uh can anyone provide us with an update? What was the purpose? What was the outcome from those
conversations? I'm not familiar with an assero briefing. Not the regarding budget is my understanding from what I read at least on the media that there was some briefings that took place with city council members yesterday.
It was uh a it was a joint a joint venture between mayor's office, CPS, and our labor partners with uh state legislators and uh city council members and it was more so a budget overview basically what you reviewed in in your
5x5s. Okay. Thank you. Were there any from the mayor's office in particular because of hearing that you know we are budgeting for 379 million in tiff money. Was there any indication during those meetings or
even from the city council members inclined? Did this come up in conversation? I'm honestly I'm just curious of what was said, what potentially what can we make here as I'm going to be making a vote at the end of the month. It was not a budget meeting. the question did come up but I was not going
to get ahead of the budget. Okay. Thank you. And I think it it's just again information that it's at least for myself helpful what has been discussed. Um I know at least in my end uh in my district I do maintain a close uh communication with the elder people
and the other elected officials. Um Mike, can you give us a quick context on the borrowing that happened? I believe you said it was for fiscal year 2016. um just what led the district to even borrow money at the time and also give us a little bit of history context
regarding the MB mef uh why are did the state had to step in even to require for the city to u make those payments. Yes. So, I'll start with um what happened in the period leading up to
2016 to 2018, which is when the district engaged in the, you know, what we're calling crisis borrowing. Um that is now costing us $200 million a year to repay. Um so, in the early 2010s, CPS was given
a pension holiday for our teacher pensions in which we the state gave us a reprieve on paying into the system. So, no one was making payments into the pension system. And in 201, I believe 14, that pension holiday expired. And
CPS then was forced to incur a $700 million cost because the system was underfunded and we needed to be on the 90% funding ramp uh by 209. That put about want to say $700 million of
pressure on CPS's budget at the time. And there were no revenue solutions in sight. So, at the time, CPS engaged in one-time actions, including depleting our entire fund balance one year to be able to balance the budget and make that
cost. And then in subsequent years, there were assumptions that the state would deliver on additional revenue for CPS based on things that were under discussion at the time that eventually led to the passage of evidence-based funding and some pension relief for CPS.
But in 2015 and sorry in 2016 and in 2017 in those budgets there was an assumption of state revenue that did not materialize when the and the district was forced to borrow forced to make mid-year cuts forced to enact furlow days and take actions to keep the budget
afloat. Um, so it was a period in which we were forced to borrow to be able to keep keep our schools open and keep our operational activities happening, but we were also forced to engage in really challenging decisions at that time, including things like mid-year cuts to
schools and furlow days, so on and so forth. And so, as we entered that period, legislation got vetoed two years in a row by the governor that would have provided CPS pension relief, provided CPS additional funding. It eventually passed in the fall of 2017 in the way
that we know it was evidence-based funding. But by that point, we had seen our credit rating drop tremendously and we had done borrowing just enough borrowing over that period of time that after the passage of of evidence-based funding and as we started to climb out
of that financial abyss, we were still saddled with this lower credit rating and these additional costs. Thank you for for that overview. you had a se you had a second question around the the MA meabf fund. So this is a fund that was established in 1921 for uh
municipal employees and non-teer employees of the school district. Um over that period of time the city has held the full legal responsibility of funding that MEABF pension fund. Um, in 2021, CPS for the first time reimbursed
the city for costs that were going into that fund. That was um taken under the Lightoot administration and and IGA was reached between the board of education and the city of Chicago for CPS to begin contributing towards that cost. MEABF as
a pension system is even more woefully underfunded than some of our other systems because of historical past decisions. Those pensions are guaranteed by the state constitution. But now there's catch-up payments that are being made based on the fact that the pension system pension system was close to
around 20% funded as recently as five or six years ago. And I apologize if I'm getting my numbers slightly off, but um the pension fund was significantly underfunded and now the city is on a path to continue increasing contributions to make sure that that
funding is there for folks when they retire. Thank you. I think it again helpful at least for everyone uh to understand the context um given that the district in a way was put in this situation from decades ago. Um oftent times it seems the district had to either choose keep
the doors open of our schools or borrow at the time. Um with that being said, I also want had a follow-up question. Um something similar to board member uh Smith regarding the 65 from the Deb um service civilization fund.
What are the negative consequences of reutilizing or repurposing the 65 million? So, as our CFO discussed, this is essentially a surplus in our rainy day fund and it's one that we have the ability to repurpose the funding and
that fund exists to do all the things that she mentioned earlier. Um, as we've seen the past two years, interest rates have been high and the existing money in that fund has grown due to higher interest rates and us not having to use that rainy day fund. So, this is a
one-time use that we are proposing to use that excess in the fund. The fund will still exist. will still be at the threshold that um exists under our policy, but it's a use of one-time fund, allowable onetime funding to be able to support this year's budget and avoid
things like cuts to schools or furlow days or borrowing that would be needed to balance the budget if that was not available. Thank you. Uh following questions, you mentioned that the proposed budget is pretty much keeps all the commitment to labor contracts. I just want to make
sure this also includes the principal's upcoming contract. This includes there's funding for the recent agreement around the principles contract. Um there is full funding for our our agreements that we signed to other labor partners. Wanted to be clear on that because there
had been discussion on the past of potential options of the district not having the funding to be able to meet those important commitments. This budget does that. Thank you. Thank you for the clarification. Um here since in this budget we are assuming we're going to
get the 379 million in TIFF money uh once you know if we do receive that money because we already budgeting we don't need an a budget amendment after because I'm going back to previously when all of us had got sworn in back in January then a budget amendment has to
come before us at the time because of the 300 million received from the city. Um, and my understanding at the time was we had to do a budget amendment because it was not initially in the budget pass previously. So in FY25, in order to enter into an
intergovernmental agreement to make a payment to the city to reimburse them for their MEABF contribution on our behalf, the budget needed to be amended because the budget that was passed in July of 24 did not allow for the possibility of the district making a
payment. This budget allows for that possibility. contingent on the receipt of additional resources so we don't have to divert resources from classrooms to to be able to make this payment. And so again, we've talked about the need for additional resources, the fight for
state revenue, the need to continue to advocate for resources, not only this year, but in the long term for the district. We saw the numbers on the five-year slide. They're much better, but they're not zero yet. And so with that fight and with that need to have more resources for the district, this
budget allows us and and allows us to make that payment if we receive those resources. Think in BA base case scenario, we get additional money whether it be state or city. Do does it need to come before us
again to vote on that matter or because we vote on this budget that already it opens that possibility there's no need to vote on it again. Approving this budget allows for that possibility without a budget amendment. What would need to be voted upon would still be the
intergo intergovernmental agreement authorizing that payment. But this would this budget would not need an amended budget to make that payment if the additional revenues materialize. And for that agreement, is that considered just majority or supermajority vote needed
for the intergovernmental agreement? Mhm. Um I believe it's a majority vote, but I will um refer to our general counsel. I can confirm that, but um I believe Mike is right um on the majority, but I'll confirm.
Thank you. Thank you, Liz. Um last question and then I'll end with a comment afterwards. Uh just to make sure this budget is also assuming we're receiving all the expected money from the federal government, right, for title one or
English learner special education. That's correct. Okay. Thank you. Thank you also for your patience for all these numbers of questions. Um I like many others have engaged in numerous conversations within groups here and here parents. I've
attended um different back to school events. I had conversations with principles at those events and what I keep hearing is making sure that cuts do not impact our students in our classrooms. So definitely glad that this proposed budget doesn't have that
included. Uh but it it is the first time that I'm like seeing this information. So I'm sure I'm going to be following up with more questions as I understand it a little bit more and also um that we received the budget line by line so we can further analyze. Thank you Mike. Member Zachor.
Thanks so much, President Harden, and uh thank you, Mike and team, um Dr. King for all the really hard work you're doing in these really challenging circumstances. Um I have two questions, but I feel the need before I ask them to just clarify what seems to be a
confusion on the part of some board members. Um, the only promises that have been made are that we as board members or at least many of us are promising to continuously fight for full and fair funding for the schools our students
deserve. No other promises have been made by anyone to anyone. So, just so we're all clear on that. Um, so the first question I have is regarding intergovernmental agreement. So um as board member Kuster pointed out uh it
was a intergovernmental agreement for the MEABF uh payment and my understanding is that we have a number of IGAS that uh give us various funds from the city. Is that true?
We have a number of intergovernmental agreements with with the city both those that we receive funding and and those that we provide funding. Um, so I'm just kind of wondering like what's the consequence if we just up and decide
that we don't have to abide by inter this intergovernmental agreement. It just doesn't seem like a thing that we could just decide when we want to follow them and when we don't. I assume you're referring to previous intergovernmental agreements around the the payment for me.
Yes. Well, I mean that one in specific, but I feel like it would have consequences on others. So most of our intergovernmental agreements, including that one, are typically one-year agreements. And so the term of the agreements is for is for that year. And so that's why each year we typically
re-enter into intergovernmental agreements for all sorts of different issues um and different topics u because they are for a fixed term. Okay. Thank you for that clarification. My other question is just a small one about the um the $25 million that you
said was a philanthropic donation and were you saying that this is a donation that we actually already received and just for some reason didn't use? This was a donation that we received I believe in 2023 and it was used to support some
expenditures around the development of the CPS blueprint in recent years. um and understanding the challenge that we're facing right now and the desire to use every opportunity available to avoid cuts to schools or things that would
represent cuts to schools in the future. Um we're using those dollars to support to support this budget. So that means we didn't use it when it was given to us. We used we used a portion of it over the last since in the time since it was given to us but a
majority of the funding remained unused. Okay. Thank you member thor. Thank you and thank you so much Mike for your work. Um what is standing out to me is that we still have a 500 plus million dollar deficit for next year even um
with the multi-year cuts that uh your team is presenting. And it's going to take um some actions aside from just hoping that we get money that falls out of the sky to be able to close that deficit for next year because we've already cut um and you're proposing cuts
to all that we can to protect our students. And the only thing aside from money falling out of the sky that can help us close that gap is us in this room and our partners being serious about advocating for revenue. And um
board member Smith, I I believe that everyone has a role to play in funding our schools, including a city, alderman, and state legislators. But specifically in Illinois, we have an inequitable school funding system that is in the process of being fixed by the
evidence-based funding formula that is um far from being fully funded. And that's not because uh our state legislators aren't willing to fund our schools. We have an inequitable system that's reliant on property taxes and a flat income tax in our state that
requires a um a constitutional amendment to fix. And last time that was on the ballot, it fails without reaching the 60% required to change the Illinois state constitution. And we have many legislators from across the state that support that. Our governor supported
that. But without a progressive income tax system, our state legislature has very few options of what they can do to raise progressive revenue to fund our schools. There are some options that exist like a digital ads tax. But whatever it is, we have to do our part
in advocating for funding for our schools to close that hundreds of millions of dollars of budget gap that we have for next year. So, I am calling on every single one of my colleagues to come down to Springfield this October for veto session. There are six session
days. It would be great if we can coordinate. Of course, they'll be in groups of five or less, but please come down. And if you aren't able to come down, meet with your legislators or legislators representing your district because they need to hear from you that you are willing to fight for funding for
our schools. We all do not want to be back here next year facing a $500 million hole. and nowhere else to cut from. So now I'll ask my question. Um I have a couple questions. One is uh this $379 million of TIFF funding. I want to
believe that that will arrive. But you've talked, Mike, about the impact of potential midyear cuts if funding that we are relying on coming through does not come through. So what is the timeline for us? Let's say we advocate
in veto session. we're able to secure some amount of funding. A question is when would we actually get that funding? Um, and if it's not like, you know, more than $175 million or $175 million, like when is the MEABF payments host you
made, like what is that timeline looking like? Uh, so those are a few questions right there about the impact of mid-year cuts and the scenario that we don't receive anywhere near the amount of TIFF funding that is currently in the proposed budget. Yeah, thank you for the question. And so we certainly again have talked about how
important it is for us to be able to avoid mid-year cuts. What we're counting on in terms of that tiff surplus assumption is just the same amount that we've received in fiscal year 2025. And so the city's budget process will play out over the course of the fall, but we're just counting on that same that
same level of distribution of of those dollars that we received last year. Um, in terms of the timing on different things, it's hard to speculate on what veto session could yield. I certainly share your urgency and the importance of us being able to continue to advocate
for solutions this year and into the future as we're look continuing to look at what those deficit numbers look like there. And note that we're still at a place where our expenses and our revenues are growing at different paces which is creating that structural imbalance. We need to solve for that.
So, hard to speculate on the timing of what legislation coming out of veto session could potentially look like. Um, you know, there's also the possibility of spring session that things may happen, but obviously when we get into the spring session, we're into January
and beyond more than halfway through our fiscal year. And so, you know, I think we'll keep a close eye on and continue to support the activities of of us advocating for more resources. Um, that's something that it's hard to say exactly how that could potentially play
out. Thank you. And it sounds on like surface level reasonable to assume that we'll receive the same amount as last year, but given that it was substantially higher the amount that we've gotten last year than previous years. Like what
other factors are there to justify that that's a reasonable assumption? And again, I want to be able to assume that we will get that funding, but there's a lot of other factors. if even a factor such as retaliation of wanting to not surplus as much if we do not make a
payment. So can you share with us how can we be certain that we would get that amount of money and there is a scenario where we get a lot less in tiff surplus and those mid-year cuts which we've discussed before would be
absolutely devastating. So, what are the asurances? You know, we're referencing board member Blae referenced a letter from a majority of city council members. What are the conversations that have been had um with alderman with city council um about TIFF funding and how
that's a reasonable assurance that we would receive 379 million. So, so there's two things I'll point to that that make that a reasonable assumption. One is that the money that's going into TIFFs every year has continued to grow. Um, so tiffs have
received in the last tax year 2024 over $1.3 billion and that's money that's coming in annually. So when we look at again where tips were at about 10 years ago, the amount that tips are receiving every year has grown by over 260%
since 2014. Um the second element of this is there are um there is an executive order from 2013 and there are policies at the city level on how um tiff surplus is approached and addressed. And so we certainly are, you
know, this budget is designed to avoid the possibility of mid-year cuts. We're confident that it does that. We also want to make good on this comm on this commitment and work with our partners at the city and at the state level and every level of government to continue to address these shared obligations that we
don't as a city have the resources to currently address. Thank you. And I'm not a TIFF expert, but tiff's growing doesn't necessarily mean the surplus also growing is my understanding. And so I'll just end with this last question. One last question is
um what are the conversations that have been had with city council regarding this issue with city council? I haven't had any uh conversations to date about specific dollars and city council.
Thank you, Vice President Bautista. Thank you, Mike. Uh thank you CFO um and Dr. King and the whole crew uh that has been working hard uh to take all the feedback from this enormous board and um
I know this is not easy. uh you know I just want to pick up I know there's uh you know board member uh you know Yena has brought this up and um you know you and other me members about
this money that we're like counting on like this assumption I don't have to like be facitious and mention the the old saying about assuming um but um you know I I want to just get the clarity on
the CFO and your conversations with the budget director at this at the city like what were what was that like when you were you know like can you talk about like this like you know you're counting on this but what was those conversations
like can you share what was talked about um I mean you had conversations with them so we've been working with the city for the for an extended period of time around what our budget deficit looked like and what our potential options were for this.
Okay. So, uh specifically, you know, to the CFO, um can you talk a little bit about the the the nature of those discussions? Yeah, the nature of the discussions we were us trying to remain solution oriented and find a path that would allow us to to balance our budget in a
way that makes sense and also to meet the all all the different commitments that we've um that we share. And uh like in the leading up to this um till today um like what what were they what was those
discussions like like how many times did you meet? I'm just trying to get a, you know, understanding of like how collaborative you are working. Yeah, we've met we've met numerous times and have been back and forth with uh with folks in the mayor's office. Okay. Um you know, I have um
board board member um Brown, you know, um we were chatting about this right now. um you know like when we're trying to understand how tiffs work, aldermen have to agree to allow that that tiff money to go into the the surplus, it's
also uh they don't like to do it and it's it's political, right? It's like they make a a political decision to be able to fill in these gaps and and do this um have this opportunity. And I I
am a little bit concerned still that this this budget is imbalanced that there is a lot of um assumptions here. You know I I think you were hinting at that as well. Um, and it
concerns me this the timeline when I'm not sure which is the board member who was talking uh about you know like what is the timeline like how how are we going to prevent um these midyear I I would call them disruptions. They're huge disruptions to
everybody uh in in the CPS system. Uh, and I am I am concerned about how you're going to avoid um, you know, midyear layoffs, you know, and is um would would a borrowing be
possible then? like is this um I'm just really concerned about the timeline, you know, and how um you know the delays in the property taxes impact like our cash flows. We've
talked about that since October since I got here and I feel like we need to talk about this today like right now uh before we vote in a couple of weeks uh because um I don't want to I don't want to have
to go through that again. that was uh it's very disruptive and I I just don't feel uh the confidence um that I would need to be able to go into my district and talk about like what this actual
plan how it's going to play out. There's so many unknowns. There's a lot of assumptions here. Um it doesn't this budget doesn't seem to really account for anticipate that the state is going to do better either uh with like the evidencebased formula
uh you know updates and also the MCAT that uh board member Pope was mentioning earlier. Um why is that missing here? I mean, I feel like that's an important an important part that is going to also
will really is not a ton of money like she mentioned, but I think that it's important to be t to be like really signaling on these opportunities that our state legislators uh can can pounce on. And I feel like this budget is not
giving them that opportunity. And I feel like it's a missed opportunity by by the team um to to leave those that part out and to make all these assumptions. I just don't feel like this is a balanced budget and I'm very concerned. Yes. So the budget does include every
dollar that's been appropriated by the state based on the budget that they passed in May. We've this budget leaves open the possibility of us receiving additional funding from the state. So far, there's been no indication that that is that is on its way, but it
certainly leaves open the possibility of us receiving those dollars and and using them within our FY26 budget. I'll say also that every budget that we have is based on assumptions and the assump we just need to make sure that we have a reasonable budget that protects our
schools. The only certainty that we would have is certainty if we came out and cut and that's certainty that we're not willing to propose in this budget. And so our goal is again from the start has been to avoid mid-year cuts, to avoid disruption to our schools, to avoid things that would be disruptive to
our students and our school communities. So um that's what this budget does. And um yeah, thank you, Mike. We appreciate all of the hard work you and the rest of the team are doing. Um and the topic will
continue. Thank you. Board members will now proceed with the potential board reports to be considered at the August 28, 2020 25 regular meeting. Each item is presented. The board members will have the opportunity
to ask their questions and make comments before proceeding to the next agenda item. Board members, we will begin with the following college and career success item number one. Amend the first and second final renewal agreements with
All-American Sports Corp. DBA Riddle Riddell All-American Sports and Shut Sports LLC. Good afternoon, President Harden, Vice President Bautista, and all board members. My name is Devon Morales, and I
am the executive director of the Office of Sports Administration. We are recommending to the board to renew at the August 28 board meeting authorization of the amendment of the
agreement to add an additional 300,000 for the FY26 All-American Sports Corp. doing business as Ryell All-American Sports and Shuts Sports LLC to continue to provide
equipment, reconditioning, reertification, new purchases, and related services for athlete safety to ensure that the Chicago Public League student athletes have consistent access to properly
maintained football safety equipment, practices, and games. competition. The district supports schools with the reertification and reconditioning of football helmets and shoulder pads, maintain documentation for inventory of
equipment, but to ensure that participating students are using safe and approved equipment, protecting them from concussions and other cat other catastrophic injuries to the best extent possible.
Aspen participation numbers for football were up 7% from SY 24 to SY25 and they are rising anticipating costs associated with the reconditioning process and replacement
helmets that fail reertification with those that are industry standard. I have requested from vendors at the season end by May 1st, 2026 an invoice so that way we could properly
budget for SY26. Starting at the season's end, I also requested that the vendors provide a more detailed pickup. That means leaving an invoice with schools and the number of helmets collected.
Our needs for football equipment reconditioning increased due to the natural wear and tear of football equipment and increased participation by our student athletes coming back out of CO. After the conclusion of each football
season, it is recommended and crucial that the football equipment is inspected, reconditioned to ensure the safety of all student athletes. If this amendment is not approved, it will increase the risk of injuries due
in significantly maintained equipment. OSA took over the inventory control and management of district football helmets and shoulder pads reconditioning process back in 2022 due to the inconsistent
compliance and insufficient budget allocation by district schools. This reconditioning initiative is a health and safety issue for our district student athletes. The annual budget for this service is
contained in our OSA budget. The Office of Sports Administration, OSA, prioritize annual reconditioning of the CPS football helmets, shoulder pads, and other related safety equipment. If
the equipment is no longer viable to provide adequate protection on field, OSA will need to have access to funding in order to replace it. The process ensures equipment integrity and most
importantly, student athlete safety. Compliance with safety standards highlights CPS commitment to safety and risk and disparities in equipment quantity across the district. Member Wallace.
Good afternoon. Uh I managed my football team in high school go and boiler makers. And given that we do an inventory uh at the end of every football season, could you give me a little bit more uh explanation or understanding of when the equipment uh was assessed by this vendor and when
they were able to get you back the invoices detailing the charges? So the equipment is picked up by the companies shut or Ryel at season's end. Now there are some coordination logistics such as getting access to the
equipment with the athletic director, principal, so on and so forth. So once they have access to the equipment, they'll give a visual, go through a battery of test and or take that equipment with them. Now, as far as the
delivery of invoices, I just got to this position in May, but I am requesting that each company delivered to me no later than May 1st, 2026 an invoice for that equipment so they would have the time to assess the
equipment, make a determination, and provide us with a cost. Welcome to the position. And is this only for helmets or is this also shoulder pads? Shoulder pads as well. Thank you, member Zach. Thank you. Um, so is it every single
year that uh they do the inspection and reconditioning and is it for every single football team in Yes, ma'am. Awesome. Okay. And then I'm just wondering, I actually did just a little bit of research on reconditioning and um, you know, saw that there that
there's the possibility that there can be faults that you don't really see in the helmets. And I'm just wondering like for how many years do helmets get used, you know, keeping that under consideration and also just understanding that um you know CTE
doesn't require necessarily huge hits but many repeated hits and so you super want to make sure that you have the most up-to-date no fault equipment. Yes ma'am. Sorry. So that's a question. So, how many years are the helmets used? Like,
how do we make sure that, you know, we're we don't have these hidden faults or that they're just going past their whatever time or maybe not up to date with respect to um standards related to uh protecting against CTE. I don't have that data, but I can get
back with you and provide that. Member Rio Sierra. Thank you. Um thank you, coach. Um, my son is a incoming freshman on his way to football practice right now. Uh, so this has taken on a whole new importance to me. Um, I'm I'm noticing here for FY26,
uh, the proposed spend is 70 725,000, but then in 27 it's 200,000. Why the up and down? What is the difference in those years? That's anticipating the cost for FY27. And so the FY26 is what we owe
currently. So F FY26 725,000. So what how did why does it go up from 44725 and then 725 and in 2026? Good afternoon board members. Let me
jump in. It's the timing of the contract. So if you notice it ends in October of 26, which is only like three months of fiscal 27. That's why there's a a little it's prorated, right? Is that it, ma'am? Member Smith.
Yes. Um, you know, I've been to some schools, some sports programs where uh students get new uh uniforms and equipment every year and other schools and uh underserved uh places where
students have to uh trade and let each other borrow equipment. What are you doing to ensure equity in all of our schools? And you know, of course, you know, equity is not equality. one school could have uh equipment from last year
and another school never got, you know, the equipment. So, how do you ensure equity number one and and underserved schools? And then number two, uh aside from just getting money for helmets and shoulder pads, do you have any partnerships? We know that football is a
big business and a lot of people are investing in our uh athletes futures. uh what kind of partnerships are you making to alleviate some of the costs? Well, for your first question, uh we are having a athletic directors meeting
coming up this week and so we want to share that information with athletic directors about equipment. So, as the former principal of Roberto Clemente Community Academy, I would I met with my athletic director weekly to ensure that whatever we need to take care for student athletes, we did because some of
that is at the school's cost. And so just informing your principal and your administrators the status of the equipment and uniforms for those teams is the first step. Second step is doing reaching out to your community and fundraising. So we were great partners
with the uh community organizations in Humble Park. And so if there was any needs there, I suggest schools reach out for that part. Um and your second question was how do we look for partnerships? So, that is something I was just appointed to this position May 19th. That is something that I'm going
to be working on during my administration hopefully to reach out to companies and and get talk started about how they can support the Chicago public school athletic associates and reach out to those alumni members who went on to
division one, two, three, and four schools and some of those professional athletes. Thank you. And and and what I'm going to ask, you know, I'm just going to ask everybody that's getting money from, you know, getting money approved, will you please come back and give us regular uh
updates about how those partnerships are going and and how the program is going? Uh that'll be up to my supervisor. I guess I was asking your supervisor. Yes, sir. Yes, sir. member to core.
Thank you. Um this is related to board member Rio Sierra's question about um the spend. Uh I see that 7% is like increased participation from year-over-year. Um how much of this increase in spending, you know, looking at closer to 300,000 and a couple years
ago uh now on average closer to 400 plus thousand. How much of that is related to increase in participation or increase in the volume of um items being purchased versus a cost increases per unit? Um I don't have that particular data.
However, I can do some research on that, but I do not have the data in relationship to the increase of cost within participation, but I can look into that. And is it accurate that it is like we're spending about 25% more than we used to on on this contract?
It appears that way, but due to the increased cost, I mean the increase of the participation of the sport. I think that makes sense if it but is like a 7% increase I would think is closer should correlate closer to a 7% increase in cost. And I'm trying to find
out what explains that difference the gap between seven and 25%. you have a seven increase increase increase in participation student athletes the cost may vary depends on regulations in terms of protocol procedure things of that nature that will in and impact the cost
I'm not saying that's a direct correlation but the participation is one thing and the cost to maintain the equipment another because as CTE research teams develop there there different stipulations and certifications that have to happen to helmets to make sure the students are safe great
that can contribute to the culture totally understand that I would like to know if it is that or another related factor or if it's that the vendor is charging a lot more than they used to. Yes. Thank you. Thank you for your report. When you get ready to raise money, reach out to board
member Smith. Yes, sir. Yes. Yes. Board members, we will continue with the following safety and security item number two. authorize the third final renewal agreement with various vendors to provide safe passage services.
All right. Good afternoon, Board President Harden, members of the board, and CEO, Dr. King. Um, I'm Ronin Chilleski. I'm the acting chief of safety and security. Uh, and I'm here with Gregory Sain, our director of community safety. Uh, we are here today
to request your authorization for the third and final agreement to provide safe passage services for 191 schools across our district. in the amount of $16.3 million. Safe Passage has been one of our most impactful partnerships, offering a trusted presence for students as they
travel to and from school. The program does more than enhance safety. It strengthens the connection between our schools and the communities we serve. Through collaboration with community- based organizations, our safe passage workers build relationships, deescalate
potential conflicts, and provide an extra set of watchful eyes to help keep the students safe. Since its inception, the program has helped foster an environment where students and families feel safe and supported for the upcoming school year. This
agreement ensures coverage for the 191 schools. This is the third and final agreement needed to secure services for all identified schools. Authorizing it now ensures continuity of operations, uninterrupted staffing, and a smooth start to the school year. Without this
contract, we will not have the ability to staff routes for the uh for the duration of the school year. I want to emphasize that Safe Patch is not just about reducing risks. It is about building trust. The workers who serve these routes are often from the very
neighborhoods our students call home. They are mentors, connectors to resources, and a reassuring presence for our families. Your approval today will allow us to continue a program that is proven and a vital component component of our district's comprehensive approach
to school safety. I respectfully ask for your support in authorizing this agreement so that together we can ensure our students start and end each school day knowing their path is safe, supported, and welcome. With that, I'll open to questions.
Member Rivas. Uh thank you, Mr. President. Uh thanks so much. Obviously, we know that uh the safe passage program is incredibly important and has done a lot of great work. Um especially um I I see them in my own neighborhood, in my own district. Um so I really appreciative of that. Um I'd just like a breakdown for these
vendors uh of what if we can get a breakdown of the number of workers and um the total dollar amount per vendor. Y we we can provide that to you. Thank you. member ways. Hi, thank you so much and yes um I'll
agree with uh board member Rivas. Your um participation in our communities is so welcome. Um and and um we really appreciate it. I'm just I I was asking I I think I asked last month for um to
understand how many of the safe passage workers were um released or cut. Um and I got a I got a spreadsheet. I'm wondering if there's some way and I and this could go to you or anybody at CPS that we could get a map that just shows
like minus 6 minus5 so we can see across the city where cuts were made, how many people were cut. Um I think that would be I'm a visual person and that would really really help me to understand um what might be missing from our
communities. Yep. Yeah, we can work on providing that to you. That would be great. Thank you so much and thanks for everything. Member Lopez. Thank you, board president. Along with what was stated, I would also love to see that information. Um, and also if you can walk us through if what are
other major changes from the previous uh renewal to this one, including whether any hours that are going to be changed, any rate of pay and positions that are going to be cut. Yeah. So, the rate of pay changed to it.
it got moved up to match minimum wage here in the city. Um when now it comes to the the big change here from previous years to this year is the reduction of hours. So to um make up for the budget
reduction what we did move is uh safe passage work previously five hours a day. It is going to be shifting to four hours per day. So you know previously safe passage workers worked one hour before the start of the school day. they worked to 1 hour past the AM bell time
and in the afternoon they worked 1 hour prior to the dismissal bell to 2 hours past the dismissal bell. So what we're going to do is this year is we're going to reduce 30 minutes in the AM and 30 minutes in the PM. So what they're going to do is still start at the same time but work until 30 minutes past the AM
bell. And now they're going to start 30 minutes before the PM bell, still end at the same time, 2 hours past the dismissal bell. Thank you for that information. Um, also is there an increase of responsibilities
for the participants and also the CBOS participating? Increase in responsibility. Are there any changes to what is expected of them? The contracts remaining the the same scope of work. Yeah. And since um and I believe these
positions are considered part-time, right? Correct. Okay. And uh at least what Go ahead. Yeah. Yeah. And they're they're they're not CPS employees. They're employees of the individual vendors since they're employees of the individual vendors. Um and it's my
understanding through the city ordinance that part-time employees need to also accumulate PTO time, sick time, who's responsible for paying towards that? Yeah, that's a good question. And I believe that's that actually falls with
the the vendor unless stated specifically within the contract here with CPS. Okay. So the vendor picks are local community organizations pick up the tab on that item. Correct. Okay. Um and the other is historically who has
usually funded safe passages? So historically it's been a mix funding between CPS directly and additional funding that we received through an IGA with the city. Have we received that funding in the last few years?
So in No, we have not in the last few years. So there's been an IG for a million dollars for the last few years and we we have not received. Do we have a valid reason from the city or what's what's happened that we are not receiving that
money? The city did not execute the agreement. I will definitely want to learn more at in what the number is because all this is impacting, you know, our budget directly and what it is that we can do
to also with me calling my local alderman who I've had, you know, several alderman come before in this meeting advocating for safe passage. what can they also do to help, you know, push that we get that money that it's owed essentially to the CBOS for the work they're doing and the parents who are
the ones, you know, putting theirelves out there whether it be extreme cold weather or hot weather. Um, and my last question and then I'll go into a comment. Um, regarding right now in particular many areas in our district
there's fear because of ICE activity. Is there any type of training that has been offered by the district to safe passage or is it the CVO's responsibility to do any training coordination if there's ICE uh situations that unfold? Yes. So we do provide uh protocols one
to our security officers in the district and we're also working with our vendors to provide that tool regarding responses from federal agents which include ICE. Yes. Okay. Thank you. And I also again want to say like I'm very a strong supporter of safe passage. I've seen it not just
in the seven district also having worked with uh other CBOS in the past that have received the funding and being in the seven district I walk the routes with the moms and also with some of that mostly moms participate in those seven district and and also when I'm driving
around in the morning and seeing there and the friendly faces. So it's a program that I I said I can see at least in seven district the impact it has. I am a concern that the quality and efficiency and how effective it might be
given some of these um the cuts, the number of hours and also the CBO's picking up the PTO and other responsibilities. And then I do want to also say that at least uh with some schools being impacted with the
crosscard cuts that it seems the expectation is that safe passage will step in. So let's keep that in mind as we are also you know reducing the hours but also having higher expectations from them. Thank you. Thank you member Bole.
Yeah I mean I have questions about the safe passage workers having to step up because of the cuts to the crossing guards um in my area. Um the vendors were explaining that
because they did not get the the funding from the city that that was expected to come through, they were having difficulty and had to provide or supplement the funding in order to keep
operating. And I asked for a little more explanation. Um, I know they they if somebody's sick, okay, you know, like for them to be able to coordinate that there's no no substitute safe passage worker because they didn't have enough
workers. Um, and that that they had to come up with I think she said it was something like 40 grand of their own money to keep it keep it running. Um and that she explained they can't cross
the kids. That's not part of their responsibility is they don't do actual crossing. So I I had some concerns about the city not paying their what what they agreed to pay and that the vendors then had to pick up the difference.
And I guess the vendors do the payroll and in terms of seeing who's who's on the who's on the corner and who's not on the corner, who's walking the route and who's not. Like they're in charge of monitoring that in case somebody's
absent. Is that my understanding? Yeah. So vendors are responsible for managing their area, right? And their employees on the routes. They do provide a daily attendance report back to us which we do track and and identify if
there are you know absences or gaps. Um as well as they do process their own funding and they invoice us on a monthly basis for for payment. Did you have any additional questions? Member Bo, can I ask a question about crossing
guards or is that off topic? Uh, I I'm here. I'm open to John Mel told me he was going to organize some kind of a meeting between, you know, alders and board members and the city and CPS to talk further about
the crossing guards. and I keep on asking about it, but so far, at least I haven't been invited to a meeting. I don't know if a meeting's happened or not. That hasn't, but I I don't know, Jamal here. Um, but I know it's something that's still being
organized. We we can follow up with Jamal on that and then make sure we coordinate when that meeting will be scheduled and follow up with you. Thanks. Thank you very much. Thank you.
Board members, we will continue with the following family and community engagement item number three. Resend and adopt new ESSA title one parent and family engagement policy. Good afternoon, President Harden,
members of the board, and um CEO Dr. King. My name is Chiron Cross and I am the title one district manager in the office of family and community engagement. I am also a proud graduate of Chicago public schools. Um, in particular, Kinwood Academy and for over
a decade I was a title one parent and PBG member for my daughter at Burnside Elementary and Diet High School. My personal experience has shown me how crucial parent voices are in shaping our children's education.
Every day I I continue to be excited to work with our team, our title one parents and school administrators to elevate and empower parent and family engagement as the cornerstone of our students academic success. Today we are
here to recommend that the board rescend and adopt a new title one every student success succeeds act as parent and family engagement policy. This new policy is designed to honor the diverse experiences and expertise of our
parents, family, students, and CPS staff. The policy was posted for public comment from June 27, 2025 to July 28, 2025. Um, the policy revision remains relevant and reflects the needs of our
CPS, Title One stakeholders while also ensuring compliance with federal and state regulations and standards. Our extensive spring and summer engagement gathered critical insights from stakeholders on what they wanted to see in the policy based on their lived
experiences with ESSA title one and these experiences are reflected in the policy. Collectively, our engagement with stakeholders included including the public comments yielded the following feedback. Um, it was added to your pack
exec board terms, clarified and removed in equitable definitions, defined the roles and the responsibilities of the pack and expenditure and fiscal responsibilities of our pack funds. Our engagement success lies in our
stakeholders understanding of the need to be at the table providing recommendations and solutions. And I would like to thank all of our stakeholders. And we have one of our stakeholders here today, Kimberly Jackson, a PBG alumni, pack chair of
Kilmer Elementary, parent mentor and CPS clerk for playing an active role in the process. So we engaged with 300 plus stakeholders, 40 plus focus groups which were in person and virtually and
onetoone consults and that included at the state and federal level, parent advisory council pack leaders, parent mentors, local school council advisory board, principles, CPS internal departments, district-wide stakeholder
engagement survey which yielded 2,200 plus stakeholder responses. We have ongoing engagement for the policy for the school year which will occur at monthly parent engagement across the network quarterly parent
board of governor's district public meetings and also in our parent university but it's not limited to that. So the implications if it's not approved is that the district will be out of compliance with ESSA which requires a review of the policy by the local
education agencies thus jeopardizing our title one funding. Additionally, it will not align with the district's board rule which requires policies last reviewed before 2019 to be re-evaluated and updated.
Approval of this policy is required for continued title one funding to our district. The inclusive partnerships and fair policies and systems. We believe that stakeholders must most impacted by title one barriers shaped by language and structure can share lived experiences
and recommendations to reimagine a policy that addresses the unseen challenges of the federal government, state, city, and CPS itself. And our vision is that we believe that community partnerships align with the CPS commitment to create opportunities to
deepen community engagement and collaboration. So our community perspective and concerns that we heard from our stakeholders included they were very excited to be a part of this process to see each step as we moved along including the public comments. Also,
they worried about they had worries around the title one funding based on federal uncertainty that could undermine the policy's purpose, which included um complicating the long-term long-term planning um limiting access to essential resources and upholding the district's
standard of funding protection. They also had concerns that the title one team, a team of two, um, is a small team which can impact the need for increased consultations at the school level. Um, and I just would love that I just love the fact that our again that our
stakeholders were at the table actively giving their input. Thank you. Are there any questions? You're off the hook. Thank you for your presentation. Board members, we will continue with the following information and technology
items numbers 4 through 7. I'll read the titles for item numbers four through six and the subject matter expert will present on those three items. Number four, authorize the public comment period for the staff acceptable
acceptable use policy. Number five, authorize the public comment period for the student acceptable use policy. Number six, authorize the public comment period for rescending the internet safety policy. Uh good afternoon, President Harden,
board members, and uh CEO Dr. King. Uh my name is Ed Wagner uh and I am the interim or the acting chief uh information officer for uh from information and technology services. I also have with me Lori Rose um who led
the revisions of these policies and the engagement with other with our other departments. Um um we recommend that the board authorize for public comment the amendment of the staff and student acceptable use policies and the recision
of the internet safety policy. The three policies are closely related so I will address them together. The staff and student acceptable use policies, commonly known as uh staff and student AUPs, um both establish and govern the standards for acceptable electronic
activity and communication between students and staff as well as other adults who work in the district such as consultants and volunteers. The staff AUP sets the standard for staff and other adults utilizing the district
technologies and systems. Um the student AUP sets the standards for all students including recent graduates who are within one year of their graduation date. The internet safety policy is a standalone technology use policy the
components of which are incorpor incorporated into the student AUPS as standard guidelines which is why we're recommending the recision of that one. Um, last updated in 2019, the staff and student AUPS are in need
of updates, including new guidance and formatting changes to make the policies easier to understand. Um, necessary updates include better alignment with CPS's reporting abuse, neglect, and inappropriate relations between adults
and student policy, introducing guidance for the acceptable use of artificial intelligence, and formatting changes to better align unacceptable uses of technology into categories so that they are easier to understand. These revisions in conjunction with the
unchanged core standards help CPS stay compliant with federal regulations like the Children's Internet Protection Act and the Family Education Rights Privacy Act, also referred to as SIPA and FURPA, respectively. Compliance with these
regulations help CPS avoid financial and legal implications pertaining to protection protecting students from inappropriate online content and protecting staff, students and their families from data breaches. The primary focus of the stand standalone internet
safety policy is on SIPA compliance. However, the more comprehensive student uh AUP contains the necessary compliance standards and guidelines. So uh which is why we're recommending uh the recision of that policy. Reducing the number of technology use standards from three to
uh three policies to two makes it easier for everyone to understand their roles and responsibilities when using district or school technology, the internet um our network system applications and infrastructure. Amending the AUPS and rescending the
internet safety policy supports the district's commitment to the connectedness and well-being of our staff and students. It also promotes equity. All staff and students have a respective single policy that outlines technology use standards and all staff
and students are held to the same respective standards. um to ensure engagement with business stakeholders beyond the equity office, office of student health and wellness, law and family and community engagement normally included in the bianual policy
reviews. It formed an AUP review committee uh with representatives from the department of curriculum instruction and digital learning, office of finance, college and career success, office of student protections and subject matter
experts within IT uh including our artificial intelligence um manager, network services, cyber security uh and and and other departments within IT. Additional business units such as the office of communications, the office of
inspector general were also engaged to ensure specific areas of the staff uh AUP were still relevant from their point of view. The uh AUP uh comm review committee also compared CPS's policies
uh to uh the four uh the AUPS for the four other large school districts in the nation to ensure our policy was uh comparable and wasn't missing anything. Um, feedback on the student a was collected from a five member student uh,
focus group from the student advisory council and an electronic survey was sent to the other 15 council members. Members of parent advisory groups were offered the opportunity to provide feedback through a survey through coordination uh, with uh, the the face
team and principles were invited to provide feedback through a survey in the school leadership uh, update. um newsletter and IT is scheduled to engage with the PR principal advisory council on September 10th. Its is actively
working to schedule a focus group with the teacher advisory council to seek feed feedback on the staff and student AUPS once meetings resume in in the new school year. Additionally, principles were invited to provide staff AUP feedback through the survey in the school leadership update communication.
It is exploring additional opportunities to engage with central off central and network offices staff to uh gather their feedback as well. Though we are still collecting feedback, we are developing a plan to address two issues that came to light uh during the
review process. First, while the staff and student AUPS are available on the CPS website and are translatable um on that site, the policies are not currently available themselves uh in any language other than English. Its plans
to uh have both policies translated into uh multiple languages and uh will be available on the CPS's website uh by December. Second, while staff are asked to review and attest to the staff AUP annually as part of the CPS's cyber
security training, there is no such consistent mechanism in place to ensure students and their families have an opportunity to review the roles and responsibilities for which students are held accountable. It is partnering with marketing to ensure a copy of the
student AUP in uh in multiple languages included in the back to school packets beginning uh next school year. Uh and it is also looking into how to best develop and deliver age appropriate student AE training uh uh to to our students. Uh I
want to thank you for your time and I'm happy to answer any questions you may have. board member Zach Core followed by board member that's all I have so far. Okay. Um thank you so much for for this and obviously the policies do need to be
updated as technology advances. Um I want to express um some concerns though about the guard rails for AI. Um we all know that AI is growing by leaps and bounds. We've heard from parents and students that um they absolutely want to
make sure that our students have access to learning about AI to prepare for jobs of the future and rightfully so. Um I just want to urge though that we be extremely careful as we move forward. Um I've read the AI guide book. Um I
appreciate that it acknowledges the potential problems, but I think it just doesn't really go far enough. Um, I know we've all read concerning stories about things like uh chat bots encouraging suicide or, you know, taking on Nazi
persona and maybe that makes us think that, oh, you know, those kinds of things are really blatant. It'll be easy to teach students how to avoid them. Um, but I think in reality, you know, bias and and inaccuracy is much more widespread and much more difficult to
identify. I want to cite a an school related example, a recent one. Um a study that found that um giving prompts for behavior in intervention strategies using black sounding names led to more
punitive strategies than those same prompts but using white sounding names. um and the differences in in strategies were very subtle uh and found just because people were studying that specific thing. But um that's not
something that overworked teachers are going to be in a position to look for or even really know that they have to look for. Um so how that kind of bias might enter into our classrooms, you know, without really realizing it is one level
of problem. I think even more worrisome is making sure that our children are adequately prepared to use AI responsibly. Um I'm sure that media literacy features somewhere in uh CPS curriculum, but not to the degree it
needs to be in there. Um I was a high school science teacher until uh a year ago. And I can say that at least up to that point, uh media literacy was not part of the high school science curriculum. It had once been part of a
mini unit um that has since you know been discontinued. Um I taught that mini unit and it really showed how much more indepth uh we need to give students opportunities to learn about media literacy if we expect to make it an
actual habit. So I just think that we should keep in mind that um the growth of AI is about profit um and safeguards will be a concern of the companies when they interfere with profit, not when they mess up people's lives. Um we know
that AI companies are already offering all kinds of free resources to universities in order to create dependence that they can then make money on. Um, and I think we should assume that our schools are next and be wary of that. So, I hope that in this process
we're just really really mindful of um of going faster than our ability to uh safeguard for some of these concerns. Thank you for that feedback. Um,
we are also concerned about bias. I I've heard that uh that that very uh study that that spoke about uh the different names uh which uh which is was disheartening. Um as the technology continues to grow uh I I I'm fairly
confident that a lot of those companies are going to uh provide additional safeguards to to to uh to help prevent those types of biases from continuing. We are also going to, you know, evaluate any tool that we leverage um to make
sure that uh that type of stuff isn't introduced into what we're doing. Um one of the reasons why uh you know we created that uh that guideline is because uh and and and we've committed to updating that I believe every quarter
is because of the very quickly changing uh playing field within AI. So we will continue to to uh evaluate things and and try to um reflect uh uh various safeguards within that guideline in
order to make sure that we are uh providing our uh our our teachers the appropriate tools to safeguard against many of the things that you spoke about. Are there any other questions from the board?
Thank you for your presentation. Thank you. Item number seven, authorize the second final renewal agreements with T-Mobile Inc., Comcast Corporation, and RCN Cable TV of Chicago. Uh so for for this uh matter we uh we
recommend the board authorize the second and final renewal agreements under Chicago connected for internet connectivity and related services with T-Mobile, Comcast and Radiate Holdings, also known as uh RCN cable for a term of one year and a not to exceed cost of $4
million. The agreement will provide students with no cost internet connectivity and related services for one additional year, making it the sixth year of the Chicago connected program. Cellular phones will also be provided to our uh unaccompanied youth students
through these contracts. The good news is that having uh originally envisioned the Chicago connected program to be only uh have a duration of four years, um I'm happy to say that the city has decided to fund the program for another
year. Uh they uh extended it last year and they're and they're going to do it again this year through the American Rescue Plan Act. All funding for this comes from that uh that act. No CAPS funding is required for this renewal. In
the coming year, we plan to look for a more sustainable model. With uncertain year-to-year funding, we've not been able to grow the program uh as much as we would like. Um we need funding that is certain over multiple years to ensure we can commit to adding additional
students. Um when we initially uh got our students onto this program uh during the pandemic, there was a large degree of mistrust that we had to uh combat against in order to get uh uh
participants in this program. So it it's it's not as easy as just giving them uh uh offering this up to them. We had to engage uh our families through uh community- based organizations and other ways of of communicating this out in
order to make sure that they understood that uh that that that uh we were doing truly doing this free of charge and uh not having any uh issues uh you know not
reporting to the federal government or anything like that um due to the politics at the time. Um the equity focus for these agreements uh for this agreement uh is uh resource equity the program allocates resources
based on students with the greatest need providing reliable internet access to help bridge the digital divide. These agreements also support the district's vision by ensuring the commitment to each students connectedness and well-being. If these agreements are not approved, the district will lose the
ability to provide internet connectivity and related services to over 20,000 families, which impacts approximately 30,000 students, including unaccompanied youth students. Uh, thank you for your time and I'm happy to answer any questions you have for this.
No questions, just a comment. I know it was incredible amount of work to retain this this program. Uh the city deserves a lot of credit for retaining it. Um I would suggest we start our work early to make sure we don't run into the same cliff that we did this year. Thank you
for your work on this. Absolutely. Thank you. Board members, we will continue with the following law item number eight. Authorize the public comment period for the ownership of intellectual property policy.
Good afternoon. My name is Paulina Munoz. I'm the senior assistant general counsel in the transactions unit of the law department. We are here um we are recommending that the board to authorize for public comment to amend the ownership of intellectual property
policy. This update is part of the board's bianial review process. This is necessary because the IP policy amendment updates outdated references to board rules and provides clear guidance to CPS employees on
IP ownership. It details the legal copyright doctrine for works made for hire and gives specific examples to how it applies to the educational work setting. The updated policy language aligns with our current contract provisions regarding IP ownership and
confidential language information in our vendor agreements. These revisions are necessary to improve clarity, ensure consistency across our agreements, and align the policy with current legal standards. My colleague is going to discuss the equity framework
and our stakeholder engagement. Thank you. Good afternoon, board members. My name is Shining Yang. I'm a assistant general counsel in the transaction team of the law department. Uh for this policy, we sought input from various stakeholders including teaching and learning, arts department and our
school law team in our law department and their feedbacks play important role in uh revising this policy. So we recognize importance of clarify how the legal terms such as um scope of employment, work for hire um applies in
educational settings. So instead of being a complicated, confusing and abstract legal concept, uh we provide a clear guideline for teachers, employees and vendors to understand how the law and policy will apply in the real life
situation. And in this revised policy, it also reflects CPS acknowledgment that staff creativity and collaborations are essential to innovation. This policy supports the goals of CPS equity framework especially in area of fair
policies and systems by promoting greater transparency and consistency. Uh it benefits both CPS employees and vendors who are seeking partnerships with CPS and we're happy to answer any questions you may have. members of core.
Um, yes. I I just have a a question for a clarification, I guess, about um how this uh applies to Skyline. And I as my understanding is that um a company or maybe multiple companies created this
curriculum for for CPS. And so does that mean it now belongs to us and we don't have to pay uh renewal charges or pay again or pay on an ongoing way uh to use Skyline? Yes. So teaching and learning heads the um Skyline curriculum. They we have
worked with them and they contract with various vendors who provide um curriculum licensing under Skyline. It would depend on each individual contract. I know in the most recent master agreement we provided um instances where it could be vendorowned,
CPS owned or co-owned, but it really depends on individual contract with these educational vendors. Any other questions? Member Wallace. Uh you said that this was a part of our annual review, but I'm noticing this is from 2000. I know intellectual property
has been exploding in the last 25 years. Uh how did we miss this one? Um this was brought to us by the policy department just as part of the the update. I'm not aware of past um policy.
Oh, hi members. Hello again. Um, so as you mentioned, um, Brendan Perry, I'm sorry, director of policy. So this became part of our, um, bianial review process. Um, in the past it had been missed honestly because nobody knew who owned it at the
time. Um, and so it kind of got passed over because we were either searching for it or nobody knew to flag it. Um, and so after a review of the contents, we were able to finally assign an owner and and get it forward. Understood. I completely understand how you can lose ownership of something as
people move and transition. Uh are you reviewing to make sure we haven't missed anything else? Yes, everybody. All of our policies and board roles have an owner now. Perfect. Thank you. Thank you for your presentation. Board members, we will continue with the following student protections in Title 9
item nine. Number nine, amend policy on the reporting of child abuse, neglect, and inappropriate relation relations between adults and students. Hi, good afternoon board members and CPS colleagues. We know that we are in between you and lunch, so we'll be
efficient. Okay. Uh my name is Elizabeth Mendoza Brown, chief title N officer in the office of student protections and title 9 and equal opportunity compliance office. I'm here with my colleague uh Bonnie Wik, our policy adviser, who will present our item for consideration.
Hi, good afternoon. My name is Bonnie Wik and I'm the policy adviser in the Office of Student Protections. Uh, I'm here to lift up our OSP's recommendation that the board amend the reporting of child abuse, neglect, and inappropriate relations between adults and students policy. Doing so will bring the policy
into alignment with state law which was amended in January 2025 to remove an outdated written confirmation step after a report of abuse or neglect neglect is made to the department of children and family services or DCFS.
If CPS does not amend our policy to reflect the change to state law, we will impose an unnecessary burden on staff time and resources to continue to require that now unnecessary confirmation step. As we mentioned in June, our engagement with stakehold
stakeholders surface other ways to strengthen the policy. One we want to lift up today that actually aligns with something uh that interim chief Ed Wagner mentioned as well is that uh we revise the standards for professional boundaries with students so that they
apply to recent graduates within a one year of graduation. And this supports um our efforts to prevent inappropriate and harmful conduct following graduation that potentially indicates grooming um had occurred prior to graduation.
Now, I'm going to turn to changes that we made in the final recommended policy from the version that was posted for public comment. To accommodate stakeholder schedules, our office continued stakeholder engagement in June and into early July, including by facilitating workshops with parents and
family and with the student advisory council. We made two additional changes based on con this continued stakeholder engagement. First, uh, we replace the defined term staff or staff member or employees with the term covered
individual adults to clarify that the standards for professional behavior towards students and the express prohibition on sexual misconduct and corporal punishment apply not only to CPS staff but also to volunteers and contractors, board and LLC members,
visitors and so on. This is for all CPS affiliated adults. By using the term covered individual adult, we mirror the language that's used in our comprehensive non-discrimination policy and also in our trainings. Um, and we we uh we understand that this helps folks
understand and and break away from the assumption, oh staff, that means just staff. Um, so second, we moved and updated instructions for students and parents to report suspected abuse in response to feedback that students and students and parents raised. Um and they
basically said this instruction is easy to miss. Uh so this content now appears in its own section, section five. And we added that students and family can report directly to a trusted school staff member. When feasible, this option takes advantage of our internal incident
reporting system, which is very inefficient. However, we know that that's not always possible. So we added an express message option for contacting OSP directly. Finally, we received one public comment and that person asked that uh the policy
be revised to clarify that LSC members are required to complete the DCFS mandi mandatory uh reporter training. Uh and to address that feedback, we revised section 2A on training to clarify that all mandated reporters as defined in section one are required to complete
that training. Uh, our proposed revisions are informed by reflecting on all four dimensions of CPS's equity framework, but I'd like to lift up two here today. By clarifying roles and reporting processes, including for students and parents and family, we aim
to design fair policies and systems. And by meeting with um at least once with eight CPS district departments and facilitating six policy review workshops with CPS community stakeholders, we sought to catalyze inclusive partnerships and ensure we were hearing
directly from those impacted and implementing the policy. Taken together, the amended policy continues to support the district's vision and commitment to each student's connectedness and well-being. And while there are no direct financial implications, failing to maintain a comprehensive and updated
policy may expose the district to legal liabilities if district um if a mandated reporter fails to report abuse or neglect. That's all and we're happy to take any questions. Member Paul, just very briefly, I don't want my
hungry colleagues to be too upset with me, but I do especially want to commend you on the important inclusion of the year after graduation. In this there are so many instances I have known about
where students were pursued and followed and taken advantage of and yes groomed and then immediately prayed upon upon graduation. So I think this is really an important addition and I want to thank you for your sensitivity to this issue and to
include it. Thank you. Yes, we we felt it was very important and and we want to name our partnership with law as well in identifying the solution. Thank you for your presentation. This concludes the first portion of the
board reports from the public agenda. We'll now move into a short recess. Board member Kuster, do you have motion mo1? Oh, I definitely do. I move that the board take a 30-minute recess. Is there a second? I second the motion. Thank you. I'll proceed with a roll
call. Member Lozano. Yes. Member Smith. Yes. Member Lopez. I. Member Bole. Yes. Member Wallace. I. Member Cluster. Hi. Member Pope. Yes.
Member Rivas. Yes. Member Rio Sierra. Hi. Member Brown. I'm sorry, he's not here. Member Bannon. Hi. Member Gutierus.
I. Member BS. Yes. Member Thorakura. Yes. Member Blae. I. Member Zachor. Yes. Member Deberry. I. Vice President Bautista. Yes.
17 eyes, zero nazs. This motion is adopted by the board. This meeting will now go into a 30-minute recess. We'll get ready to start. The meeting of the board of education is reconvening. Board members will now proceed with the
second group of potential board reports to be considered at the August 28th, 2025 regular meeting. After each item is presented, board members will have the opportunity to ask brief questions and make short comments before proceeding to
the next agenda item. Thank you. Board members, we will continue with the following facilities items numbers 10 and 11. I'll read the titles for items number 10 and 11, and the subject matter expert will present on those two items. 10. Amend the first and second final
renewal agreement with various contractors to provide various trades work. 11. Authorize the first and second final renewal agreement with Constellation New Energy Gas Division LLC. Good afternoon, board members. My name is Caleb Braberg. I'm the director of
facilities management operations. Uh we are recommending the board to authorize an amendment to the current agreement for a pre-qualified vendor pool of 204 vendors to perform various trades work over $35,000 for operations in the maintenance program. There are 64 unique
trade categories to which these vendors are pre-qualified. This amendment is doing two things. First, it is extending the contract by three months from December 31st, 2025 until March 31st, 2026. These three months are needed to ensure
that there's adequate time for finishing the procurement process on the new RFQ. Uh just for reference, the new various trades RFQ was on the market from May 21st, 2025 through July 15th, 2025, and we're going through the evaluation process. The second part for this
amendment is to increase the not to exceed authority by a total of $33.2 million to get us through March 31st, 2026. Currently, there is less than 50,000 in authority remaining. Not authorizing an increase will handicap facilities, operations, capital, and
schools from performing trades work. The FY23 spend on the slide is inaccurate, and we will be following up with the corrected spend. Um, between FY24 and 25, the spend was 93.649 million. In FY24, it was 51.86 million
and FY25 41.7. During that period, 71.6% or 67 million was funded between capital dollars and facilities operating dollars. The balance, the 28.4% or 26.6 million was funded by schools and other
departments. The latter group had a much higher spend than in previous years, which is one of which contributed to the need for us to present this item to increase um for an additional authority. This contract is directly related to the 21st century
environment vision as it is used for repair and building spaces to meet the needs of students and staff. Our equity focus is to look at the needs of each school and then look at it with taking other factors into consideration such as if it's a life safety issue, the infrastructure and age of the building
and whether or not the asset is going to be replaced through the capital plan. Thank you for your consideration on this particular item. Are any questions or comments? I think I scared everybody for you. Thank you for your presentation.
Board members will be continue with the following capital items numbers 12 and 13 and begin with item 12. Transfer title to excess. Oh, I'm sorry. I thought uh sameme was presenting on that. We're going back to 11.
Good afternoon. My name is Matt Beachch and I'm the director of energy and sustainability within facilities. We are requesting the board authorize two 2-year renewal agreements for natural gas supply with Constellation New Energy. These renewal agreements were
contemplated in the original agreement that was awarded on a competitive basis for a term commencing January of 2023 and ending January of 2026. If approved, vendor will continue to supply the board's full requirements for natural gas supply, including but not
limited to space and hot uh hot water heating to all the board's facilities. That will allow the board to purchase its required natural gas consumption. We are requesting a not to exceed amount of $64 million with Constellation New Energy out to January of 2030.
Uh these uh represent three full and two partial fiscal years. The four-year term of these renewal agreements will commence January of 2026 and end in January of 2030. The vendor was selected through a competitive process. There are
no MBE or WB goals as the contract is an excluded transaction pursuant to the goods and services policy. The exclusion is provided for the utility agreement or a transaction for a utility supplier organization. It is our expectation that
with the continued ability to proactively hedge future future natural gas prices, we can realize natural gas supply pricing at at prices lower than previous years. If these natural gas supply renewal agreements are not
approved, we will need to send out another RFP or default to the variable people's gas supply rates. Thank you for your consideration. Any comments or questions from the board?
What are the price differences with People's Gas and this vendor? Uh, it varies. It depends. People's Gas also hedges natural gas supply for end users within people's gas territory. If we do it through a thirdparty supplier,
that weighted average cost of gas would have would be reliant upon when we bought it, how much we bought, what's the weighted average amongst the prices that we realized through our third party. But typically, um, people's gas is aligned with a
Illinois Commerce Commission approved procurement strategy where they buy a set amount every given month. But depending on what the natural gas market does, that price can vary on an annual basis. But typically and with and over
the course of the last 25 years since Deregulation really came into its own, most people through a third party can probably outperform people's gas prices. Have you made the comparison um like how
much we've saved? I'm over here. Uh have I don't know. Have you made the comparison like how much you've saved using the third party like in the last 25 years or whatever uh you just mentioned? I have not. So like how do we know that this is the best?
Well, we look at people's gas p uh on a monthly basis. We look at people's gas published prices for each given month and we consistently we're below that. Okay. But over the last 25 years, no. But you know, we are looking at that. There are
some months where people's gas just because of the way that they have done their it just turned out they were better that month because the market did something that worked in their strategic favor. But most of the time we're well below people's gas.
Okay. It would be helpful to maybe see them last five years or just see like how how much we're saving um using the third party. Sure. Uh and then uh you said out of the for the RFP you said this was the only company that
um applied or the RFP process there were two uh repliers. There was two constellation and another company. Okay. And now keep in mind the reason that we're seeing a der of suppliers is because we are a massive load of natural
gas. There are not probably that many natural gas suppliers in the state of Illinois that could handle our load. Okay. And then um how many do you would you happen to know how many other
entities they supply or any do you know if they have any other governmental entities? Constellation is massive. They're probably the largest supplier in the in the state of Illinois. Okay. Um, so my chief of staff is not in the room, but if somebody could take a
note uh to make sure that we get the information from the last maybe five years and then also um more information about the the two um companies that applied for the RFP and like their background like how who they're supplying. It'd be good to be able to
talk to other um you know, school districts or municipalities or townships, you know, that are also uh working with them. Um it just to make sure that we're getting the best price and also to be able to better be in a better position to negotiate. We're
approaching this financial cliff and this is a big ask that uh y'all are making for from the board, right? Well, you know, these are two very large suppliers in the state of Illinois. There are not hundreds of suppliers in the state of Illinois. Alternative retail electric or natural
gas suppliers, there's a finite amount. And as I mentioned earlier, for the millions of dollars worth of natural gas we buy on a month-to-month basis, there are very few natural gas suppliers even within that pool that would be willing to float us 90 days for six, seven,
eight million that we take to pay our bills. So that again starts to eliminate lots of suppliers. So consolation, they're the big player in the state. They could handle our load. Beyond that, there are very few that would step up to the plate and say throw in competitive
bidding just because of who and what we are. Yeah. And then with this data, I'm also going to compare it to like what we could be saving if we are divesting from natural gas. I think that's what um just so to be completely transparent is my my end goal to see like how we could be saving. And I know this is not something
that we can do right now in this moment, but gathering that data and making informed decisions later in the f in the future is going to be important to understand uh how these companies work and the other options that we have with renewables as we just passed green and schools resolution. This is on top of
mind for uh some of us on the board. Absolutely. Happy to share information with you. But just keep in mind on a per million BTU basis, electricity is nine times more expensive than natural gas. Thank you. You're welcome. member Rivas.
Uh my question was uh pretty pretty quick. It was very similar but very quick and uh so I won't ask it but thank you for doing your due diligence around this real quick. This was this is a renewal correct? Correct. Yeah, we were coming we're just
in January we'll be coming off of the original three-year. Perfect. Thank you. Thank you for your presentation. Board members, we will continue with the following capital items numbers 12 and 13 and begin with item 12. Transfer title to excess real estate
located at 3700 to 3718 South Prairie Avenue. Good afternoon, board president, members of the board. My name is Steven Stoultz, director of real estate for the Department of Capital and Facility Operations. We recommend the board authorize the
transfer of approximately 0.85 acres of excess real estate located at 3700-3718 South Prairie Avenue. The property is across the street from Idol B. Wells Prepar Preparatory Elementary School, but is contiguous with Louis Anderson
Park, Lewis Anderson Park, excuse me. The land that is subject to the transfer is improved with two tennis courts that are not utilized by either sports administration or by physical education instruction and they are directly adjacent to Louis Anderson Park
or I'm sorry I'll never mind the the the land uh the property is no longer utilized for educational or administrative purposes and we recommend transferring ownership to the Chicago Park District. This matter was presented to the Greater Bronzeville CAC and at a local community meeting and there were
no concerns raised about this matter. Title of the property is held by the public comm building commission of Chicago as trustee for the board and the board's approval authorizes the PBC to transfer title to the Chicago Park District on the board's behalf. The pro uh the property transfer to the park
district is authorized by the local government property transfer act. The land transfer is consistent with past practice and cooperation with the park Chicago park district and CPS will have access to and use of the tennis courts in line with our long-standing partnership with the park district. That
concludes my presentation. I'll be happy to answer any questions. Member Smith. Yes. Um with this transfer, uh will CPS receive any dollars from the park district or is this just a straight transfer? Uh the transfer is I believe
for $1, so it's a nominal amount. We won't receive any real value for this property. And since CPS will have access uh to the property, will this be considered would this be in like procurement? Is it like a um collaboration between the park
district and CPS from now on since we'll have access to it? So that's not written. There's no that's not a condition of this transfer, but it's just a long-standing practice that we have with the park district where schools every day utilize the adjacent park. A lot of times they're contiguous
with each other and a school may be built really with no separating line. You can't tell that the school property ends here and the park ends here. So, it's very typical that a school will utilize a park district property during the school day and for after school programming. And even some parks have uh
programming inside of school buildings. Sometimes there's park districts without a fieldhouse and the adjacent school building may be the only location for them to have a like a program like park kids where kids after school stay with park district staff for several hours usually until 6 p.m. So it's it's a very
standard long-standing practice but it's not a condition of this property transfer. Okay. Thank you. Thank you. Member Bigs. Yes. Uh just given the moment that we're in in the conversation that we were having earlier about partnership, um I'm
wondering if a sale of CPS property for a single dollar to a sister agency like the Chicago Park District, right? Is that pretty customary? Do we do we often give land in that way? It is very customary. Um we did a review last year. We had a transfer. So we did a review. We can reiterate we can supply
the information, but we did a review over all the property transfers between us and sister agencies over the last 20 years. Um, and we have that information we can share. But yes, it's very typical. I'm not aware of one transaction where either party paid full value for property. Got it. And
typically it's done at $1 with sister agencies. Um, again, a lot of times we're we're not always going to be the donor of the property. A lot of times we're the recipient of the property. So overall, we feel that it it works itself out in the end. Um, currently we may be
receiving more property it looks like than we've given to the park district over the last several years. That's great. I just wanted to make sure that it was a true partnership agreement. Yes. Thank you. I think that's all. Thank you. Thank you. Item number 13, resolution adopting a
final one-year capital improvement plan for fiscal year 2026. Good afternoon, board members. Uh, board president Harding, board members, uh, my name is Venue Adai. I'm the executive director for capital planning and construction, joined here by Ivan
Hansen, our chief facilities officer, and we are recommending the board to approve the FY26 capital improvement plan at the August 28 uh, 2025 board meeting. Uh per state law, uh the board of education must approve a one-year
capital improvement plan within 45 days of the passage of the annual school budget. To that end, our capital planning process kicked off at the beginning of this year with our internal stakeholder engagement and utilizing our most recent facility condition
assessments that were recently posted on May 1st on the CPS website to continue our goal of uh increased transparency throughout the process. uh our engagement uh with the community. We had three virtual meetings and two in-person
uh meetings that and received over 5,300 responses to this survey that was a part of that uh uh engagement and that's up from 1,400 uh responses last year. Uh feedback emphasized the importance of the facility needs projects and
supported our current equity index uh methodology. Uh the CPS equity index was developed in coordination with the office of equity and guides uh funding towards our highest need schools. Some highlights of the capital plan are that
it's a total investment of $555.9 million um including facility needs, interior improvements, programmatic upgrades, site improvements, IT and other assets. Um so this to this 555.9
million includes 55.7 approximately and uh million dollars in outside funding. Uh 310 million of it would go to critical facility needs which would include repairs to uh and replacements to roofs, windows, and
masonry. uh urgent upgrades to some HVAC and mechanical systems to ensure our schools are warm, safe, and dry, and run more efficiently. Uh it includes a category for critical system repairs, which would include our fire alarm systems, our chimney stabilization
program, our masonry remediation program, and our temperature controls for our BAS systems. It also includes a category for our ADA accessibility upgrades to ensure uh first floor accessibility which includes our our
ongoing improvements for parking lots, entrances, offices as well as restrooms. In addition to these projects, there's also a category for green initiatives. While all projects include some sustainability features like uh energy
efficiency equipment, higher R values for our roofing equipment, roofing materials, uh low VOCC paint. Uh this category looks to expand upon that uh and the with additional green initiatives as highlighted in the resolution passed by the board in June
for green schools. Um, this budget also includes about $17 million for interior improvements, um, for continuing our restroom modernization program, uh, which looks to renovate one male, one female, and one all gender restroom in
each of our elementary schools, as well as other interior improvements, and it continues our uh, space efficiency and modernization review. Additionally included in the in the plan is about $29 million uh in programmatic investments
for prek and nutrition upgrades as well as athletic resources including our stadiums and swimming pool refurbishment program. And this category includes about $15 million in outside funding uh from TIFF. Um the next category we have
$118.5 million about for IT security and other investments and this would include upgrades to our school's network uh infrastructure and replacement of aging hardware. It also includes the uh Oracle
uh business upgrade that uh the IT department has undertaken as well as improvements to our data warehouse and backups for secure operations. And it also includes um about $5.5 million to uh in uh custodial equipments or
insourcing that uh custodial equipment. And this category includes about $5 million in uh outside funding from federal -ray funding. Uh the next category would have been uh the site improvements which is about $28.3 million. It includes our playgrounds,
play lots, our schoolyards, um, and, uh, parking lot improvements, and turf replacements. Uh, there's about $10 million, uh, in outside funding in this category, uh, for our space to grow programs where we partner with um, uh,
DWM, which Department of Water Management, and the Metropolitan Water Reclamation District. And then there's about $23 million for capital support services. And these are funds for planning, design, project management, and and our uh facility assessments to
ensure the smooth uh that we can, you know, fully um implement the the plan as uh outlined. Additionally, there's about $30 million for outside funding. Um that includes uh DCEO grants which is our department of commerce and economic
opportunity grants from the state uh that are currently in process with the state. Um so this plan uh prioritizes projects based on critical facility needs and our equity index to ensure the equitable distribution of funds across
the district schools. In addition, we look to continue our commitment uh to exceeding our MWBE goals uh which we have been near 50% over the past 5 years. Um our capital hearings for the FY26 capital plan are scheduled for
August 20th and August 21st. Uh registration for these events starts today at 5:00 PM and can be done at cps.edu edu back capital plan2026. Again, our recommendation would be to
approve this proposed FY26 capital improvement plan at the August 28th board. Uh, thank you for your consideration and I'll take any questions right now. Questions or comments. Thank you very much.
Thank you, board members. We will continue with the following finance items. Numbers 14- 16. We'll begin with number 14. Resolution adopting the annual school budget for fiscal year 2026.
Good afternoon board members. I promise you I'll be more brief this time. Um I'm uh presenting the uh recommendation to adopt the annual school budget resolution for fiscal year 2026. Uh the basis for recommendation is that
if this p is this is passed this budget gives CPS the legal basis to spend appropriated funds for operating capital and debt service purposes in fiscal year 2026. Um, publication of the proposed budget will happen today to meet the 15-day
statutory requirement uh to have a vote at the board meeting on the 28th and two budget hearings will be held on the on August 19th as I mentioned earlier. Um, lastly, state law requires that CPS adopt a budget within the first 60 days
of the fiscal year. Um, which gives us until August 29th. Any questions? I think you've had enough questions, Mike. Thank you. Thank you very much. I'll read titles for item numbers 15 and
16 and the subject matter expert will present on those two items. 15 resolution loving property taxes and authorizing and directing the filing of a controller certificate for the fiscal year 2026 for school and capital improvement purposes. And 16 is
resolution authorizing the issuance of educational purposes tax anticipation warrants and notes of the board of education in a maximum principal amount not to exceed 1 bill250 million. Hi, good afternoon everybody. Wally sock
the district treasurer and let me walk through these these two items. So I'm going to talk to both of them. The first one is the resolution uh levying the property taxes and just as uh madam secretary read filing of a controllers
uh certificate for the school board for fiscal year uh 26. So, the budget, as we spoke about earlier, uh it identifies $4 billion in property taxes to try to balance revenues and expenses. And what we're presenting to the board in this
item is the legal document in the form of the annual property tax resolution that we're going to need to file with Cook and DuPage counties in order to receive those property taxes for operations in fiscal year 26. So the property taxes um they're
currently our largest source of revenue over 50% of our revenue. And so without these revenues, we'd be significantly short of all our revenues for the 26 budget. And the amounts that we're levying, they
consist of several parts. I think it's important to to go through those and note those. So, there's a teachers pension levy and that's totaling approximately $612 million. There's a workers compensation levy and that's approximately $86 million. A capital
improvement tax levy for $24 million. And then there's the educational purposes levy of approximately $3.28 billion. So all total that's again approximately $4 billion. The education
levy that I spoke of, as you can tell at 3.28, it's the largest part of all of these. So, it allows us to do the things that you might think, you know, pay the teachers salaries, all our staff uh salaries, clean and maintain our buildings, uh do all the information and
computer and technology work that we need, and pay all our vendors. Uh all the things that uh need to do to support the education mission at CPS is is all baked into this levy. The second part of the levy that is uh kind of the largest
is is the the teachers pension part at the 612 million. So uh we get to levy a rate of 0.567 on the taxable property in in the district and we we try to maintain that every year. The the total amount that we actually need to pay for
teachers pensions is 1 billion26 million. So at 612 that's that's you know just a fraction of it. Um, we do have the state that comes in and pays $362 million in fiscal year 26, but I think it's also important to understand
because we have a lot of talk about the pensions that we'll also be paying $65 million approximately from our operating expense because the levy itself is not enough. So again, uh this overall levy at 4 billion, it supports the budget that we
hope will be voted on in August and it's needed to support our revenues and because they're limited and we have no other ability to increase those revenues for operations. Um the dollar amount just want to note
is $151 million greater than the prior year's levy request. And I also want to note that this is a request, right? So, we're requesting an amount here and it will be finalized by Cook County ideally a year from now.
Um, so it will be slightly smaller, but that's a request. I'm also uh want to point out that I'm comparing last year's request to this year's request. Typically, we should have last year's tax levy final and we should have already collected that. But that's actually not been the case because we we
may have heard that all the property taxes in Cook County are delayed. So I do hope that the amount that we're asking for will be slightly reduced and it's it's probably going to be near something of the rate of inflation. Each year we get to increase our taxes by the
lesser of um the increase in the consumer price index for 5% and the increase in the consumer price index was 2.9%. So that that number there at 151 is a little bit greater than that because we're trying to account for new property growth.
Um, but I do I do want to conclude and just say that, you know, we're we're always facing constant external pressure for revenue. We're very conscientious about what we're doing here with the levy. Um, and uh, we take it very seriously and it's it's something that's needed to to help balance the budget.
Do you have any questions? Any questions or comments? A couple quick questions. Yes, member Bennett. Um could you clarify by when you say request um this isn't a request like we're we're asking them for the money and they approve it or not. This is this
is the information we send them and they put it through their calculations and and uh and and calculate the rate and and how much we'll eventually get based on the other numbers that have to be computed. Is that accurate? Yes. Yes. And let me let me just expand
upon that a little bit more. So we we ask for a levy. Um we we don't want to ask for 20% more or 10% more because we're never going to get that. So we're always asking for a little bit more understanding what the rate of inflation is. Um understanding that there may be
some new property growth. Um but ultimately it it lies in the hands of of Cook County. Um and there's a lot of work that goes on between the assessor's office and the tax extensions department. But the we we operate under the property tax extension limitation
law and and we cannot raise the levy uh beyond um the lesser of 5% or or the rate of inflation. So so that's the calculation that will take place and and as I I just stated it's it's just a request and it will come back and it be it will be final. And my second last question is have you
done any calculations on uh how much the increase would impact a median homeowner in the county? Um that that that's a fair question. It's it's a little difficult to calculate because of the fact that we're in flux with this year, but we do think that there's a large
amount of new property growth that's kind of coming into the system. Um and that will happen with this tax levy that's in the process and it will happen with the next tax levy. So my preliminary calculation was actually that our tax rate would go down potentially next year, which mean would
mean that primarily the burden of the increase would be shared on new property growth. There's there's something like I believe we have in the budget almost $1.4 billion of TIFF that is going to be expiring in taxing districts and then with other new property growth there could be as much as $2 billion in new
growth that could help absorb some of this and not make it an absolute you know dollar fordoll increase onto taxpayers. Definitely be sure to let us know if the rate goes down. We will. Thank you. Member Wallace. I'm sorry. Did I mishar you? Did you say
DUP page and Cook counties? Yes. Okay. So, it's a little um unknown fact sometimes, but uh there's a portion of O'Hare airport that uh was annexed or something into DuPage County. So, there's a couple airport hangers that we get a couple hundred,000 in tax from,
but we have to file the tax levy in DuPage County every year. Fair enough. Thank you, member Gutierrez. So, if I'm read So, if I'm reading this correctly, the levy is $144 million
greater than it was the prior year. Uh, yes, that's what I put in the slide. Yes. And what was that number the prior year? Do you remember? Uh, well, the the the was the request. So, the request last year was like 3
3 uh 934123124. I have it. I could share it with the board. And actually, the slide needed to be updated. Um it we did the number on the slide shows you 144 and I mentioned it's 151 actually based on the resolution that we're going to present.
And I just would like for this body to recognize that that 144 is greater than the defeat of the last proposal that the mayor had of a million dollars in t property taxes. Member Biggs.
Yeah. Um Wally, uh you're the expert on levies and so I wanted to use this opportunity. So CPS is able to levy for what things? So we're we're levying for kind of a a
legacy of the things that we've levied for the prior year. So, just like I stated, the educational purposes levy, um the tort fund, um and and then there's two other additional levies that it took special legislation in Springfield that that are kind of in our
in our in our sites in our our um era that that were given to us. So, that's the pension property tax levy that was part of the 2017 18 uh you know, EBF reform. We got the ability to levy this 567. So, if you know, you went back to
2015, we didn't have that. We've only been having that for the last few fiscal years. And then I mentioned the capital improvement tax uh levy. So, that's for for much of the not not much, but some of the work that was described in the capital budget. Um, and we've been
levying that tax, I think, for somewhere a little bit less than 10 years. And that law was put in somewhere after the year 2000. So, we also have close to a billion dollars in bonds outstanding um that we levy for that are part of that
tax, but that $24 million again was part of a package that the legislature gave us to start levying taxes. They're not enough, but taxes so that we can sort of fix and maintain our buildings, but we're very limited in what we got. Yeah. And that that pension levy that you're talking about, can that go
to fund the pension of any employee of CPS? So, the the levy is very specific. There's there's, you know, legislation that outlined exactly what we were supposed to do. I mean, one of the nuances of the law was that we have to
ask for the levy, but the levy doesn't come the money does not come back to our treasury. It goes directly to the fund. Um, and we're it's essentially all we can do. So, they have we have their banking instructions and they every time there's a tax distribution, they get the
money and we we don't get that. And there's no ability really without any other further changes in the law to direct that into another another direction. Got it. So we're able to levy specifically for our teachers pensions,
but we're not able to levy for any other employee pension. Correct. That's that's correct. Okay. And how how are other employee pensions how are those funded? non-teer employees uh in terms of Chicago or just Yeah, just Chicago.
Uh uh like in in terms of the MEABF, I guess. Yeah. So, uh so the city levies a tax for those pensions for the MEABF. So, does that process work the same for municipal employee pensions where the
city makes a request, right, and then that goes into the MEABF, right, and they don't touch it again? Does it work in the same way that our levy for teacher pensions work? So, we are a non-home rule entity underneath the state of Illinois rules
on on local government and the city of Chicago is a home rule entity. So, uh they have a little bit more uh tools that they can use in terms of the tax levies and what they do. But their ability to levy the tax is much like our
ability to levy taxes. It has to be approved by their governing body by their by their alderman. Um but in theory they they are levying the tax. The aldermen are approving it. Um and um it's extended but I I don't believe they
send I I don't know what the inards of the city do does if that money goes directly to the fund or comes to the city and then they do that. But they make those payments. Let's just say. Got it. Okay. Thank you, Wally. Sure. Um, if there's no other questions, I'll
move to the next item, which is the TANS. Okay. So, uh, you know, our cash balance in our bank account at year end uh continues to not be large enough. So
we have a sub large very large large large budget but at the end of the fiscal year um in 2025 looking back very recently we ended with a a negative net cash position if you can believe that
and that was the first time since 2022 and you have to kind of wrap your head around what that is a a negative net cash position right um but it was driven by 450 million ion dollar in short-term
borrowing outstanding and then having physical cash from that borrowing left over at at uh 91 million and then that meant that we had a negative net negative cash position of subtracting
the two of $358 million. So, we didn't even technically have one day of of free operating cash at year end before property taxes were supposed to come in on octo on August 1st and we all know
that they're probably not going to come in and I'm hoping they'll be due about Halloween. So, that's a pretty it's a pretty tight situation. So, we have no wiggle room. We really have no rainy day funds. And you know, in a perfect world, we'd have
at least 30 days of cash on hand at year end or over a billion dollars in order to make it through to around uh August 1st. So, as a result of that, um, with property taxes being our largest source
of revenue, uh, we basically structure short-term, uh, loans called TANS, tax anticipation notes to maintain cash flow for all of our operations. So, we draw on TANS as the liquidity position looks like it will go negative.
We don't want to have a negative cash position. And then we help make our payroll, we help make our vendor payments, we help make our charter payments, all those types of things that we do for for uh for operations. So in fact, um in 25, the fiscal year that we just ended, we used hands for
50% of our payroll. Um that was down a little bit. Uh in 25 we still had some federal COVID money left, er money in the fall. So um I think that helped us a little bit. And um this year we don't
have that luxury anymore. We're delayed on the property taxes. So it looks like we may be up to 80% of our payrolls may be funded by TANS. So needless to say, um we're asking for authorization to go out and structure
new lines of credit in the same capacity. We believe the same capacity will be uh what we can do um for the upcoming year. So it's a 1.25 25 billion authorization and then we will go and we will negotiate these lines of credits with the bank and and then be able to
have them outstanding um at at year end. And you know, I did a I did a quick back of the envelope calculation because I'm I'm sure you're you know, you may be wondering this, but if you our interest rate on the TANS, right? Um we've worked very hard to try to with our credit
ratings being a lot better recently, leaning on the banks, pitting them against each other. Um I think we've done an excellent job. our our credit spread that we pay is is been the lowest that I've seen in in 10 years, but we're still the majority of what we pay is is
a base is a base in is a base um index. Um but overall, so that's about 90% of what we pay is the base index. We talk about mortgages and prime and all these types of things. So there's a base index and that's the what we start out and then we pay a half about a half of a percentage point of a credit spread on
top of that. Overall, we pay about 4%. Okay? So, you might not think that's too bad, right? 4%, right? Well, um, at $1.2 billion, 4% if that was outstanding for the entire year would be $48 million.
Luckily, it's not outstanding for the entire year. But for every day that we have that maximum amount drawn, that's like $131,000 every day that that's outstanding. So, that that's definitely more than a teacher salary. So that's why I think we
we talk about the importance of the fiscal responsibility, trying to maintain the balance, trying to just get back on on solid footing because it's not really the objective to try to pay $131,000 a day in interest expenses. And we're really trying to get back to that. We really try to do the most we can do
to minimize those costs. That's why these programs are so important. We have the flexibility to draw in three days notice, repay in three days notice, and cut that that factor down. So, we're not paying $48 million a year in interest expense. And by the way, in the worst
times that I was here back in 15 and 16, we did pay almost $60 million a year in interest expenses. But I think for this year, what I put on the slide is we have budgeted $23 million. And again, a big function of that is because the delay in the property taxes. So, the property
taxes being delayed mean that we don't currently have the maximum amount drawn, but by Labor Day, we will have the maximum amount drawn at 1.2 two billion dollars and and and then that will persist probably till October and at
that point we'll probably pay an extra 10 or 11 million of interest because we didn't get our property taxes undone but I'm I'm I'm getting a little off but I I just I feel it's important for you to just understand all of this and how it all fits into everything that we're
really working hard to try to do. Um so I just ask for your approval for the tans. Um, that's that's all we need to do and we'll we'll try to do the rest. You have any questions? Member Rivas. Uh, thank you, Mr. President. Uh, so Wall-E, um, every single dollar counts
and it's a lot of money to be losing on interest payments uh because we haven't received our our funding on time. Is there any remediation or or what happens? What happens with the assessor's office that they didn't provide this funding? Do they can they provide us a loan at no interest to be
able to hold us over? like what is are we just out of luck then? It it this is not the first time that we've experienced this and historically there the county has put some programs together for smaller entities to try to take loans but they've never been able
to put something as large uh as they would need to do for us um in in order to to mitigate anything. And um and so we're really kind of on our own much like all the other taxing entities in Cook County. who are one of hundreds of school districts, park districts,
municipalities that are all waiting. So, um, right now it's it's it's a a computer system issue and, you know, there's a lot of fingerpointing that that is going on. But I think that the basic thing that we can do is as a as a as a board elected and appointed, just
continue to collaborate and communicate with those at the county and understand, you know, where we're at and and and try to tell them the importance of of of timely tax bills and and tell them a little bit of how much it costs the taxpayers because of this. I think they
know it, but I think coming from you will be be much more meaningful than me. So, is this uh us advocating to our county commissioners, our border review, the assessor's office, or a mix of all of them? M a m a mix of a mix of all with with with gentle touch, I suppose.
Thanks. Sure. Member Kuster. Thank you, board president. Um, yeah, Wally, my question was actually in a similar vein. So, I guess I'll ask first, is this a time of the year when we typically take out a TANS or is this something special because of the delayed
dispersement? Yeah, that that that's a great question. So, the TANS are always tied to the property tax levy if I didn't didn't make that clear. So, we can't do TANS without the property tax levy. And then the property tax levy is always coupled to the budget. We have
separated the tax levy out by a few months. But this year, because we do need to actually put the new TANS in place in October, um we have attached them and and it is kind of a timing issue. So it is it is of paramount
importance that we have the ability to to execute based on the budget. The TANS cannot be done without the tax levy. The tax levy is not valid without the budget and we do not have enough money to get out of October. Right. Um so I guess my second question
is similarish to board member Rivas but I know when I u met with the assessor's office as well they had said uh I said what this has happened before. Yes. what do you know other municipalities typically do? And he had mentioned a bridge loan. And I my question is similar. Have we reached out to the
county um since it was their agency? I mean, have they have have we had discussions about perhaps them taking out that bridge loan to help us out? I mean, to to support this because I I have to imagine there are other like agencies that are, you know, less than
60 days of cash as well. And what is everyone going to do with this late dispersement? Have there been any conversations like that with the county itself? In the past there have been. And I'm also there's only a select amount of banks that actually can um provide the credit that that we need and and even
provide the size of the credit that the county would need to to create such a program. So we have fortunately we have good relationships with those banks. So I I I understand like when the county put that loan program together, you know, I had had a couple conversations with some at the county. I had a lot of conversations with the banks, but it
really wasn't a fit for us. Again, the size they may have put a program together and it it may have not been even hundred million, but we're asking for one point or each of our payroll greater than $100 million. Understood. So, it it really was sort of a we were going to try to have that conversation,
see if anything comes out of it, but really nothing I think has has come out of it. And and the the bridge loan I guess tans are sort of a bridge loan, right? you know, there would be more complexities to taking a loan out with another another entity. Um, and we we'd be having to essentially do the same
thing, adopt some type of a resolution and have some type of authorization. But currently, there's nothing on the table like that. And I'm not I was I'm not aware that the county actually is putting that program together this year. Okay. Thank you, member Lopez.
Thank you, President. Also following up regarding the county, Lisa, it's my understanding and I'm going primarily based on public information um that a lot of this has been caused for five because of the five-year delay on their systems that they've been trying to update with counting the assessor's
office, the clerk's office, and the treasurer's office. Uh most recently what I read again via the uh different outlets that covered it is um county president Tony Pekwinkle has now released updates via dashboard
trying to push for all these offices to communicate and then figuring out also what to do with the uh the vendor and we go back as uh public servants our importance when we do procurement and who we do business with that we're standing with what's best uh for the you
entity that we represent. Um that being said, yes, let us know how we could be of strategy also with the board president um CEO to help in these conversations um you know with the other level like said the clerk treasur's
office the um county's presidents or local county commissioners uh you mentioned already the assessor's office so they can see the impact that is having uh also on the students and the families we serve. Yeah. Thank you. Thank you. I I appreciate it and I don't want to continue to wax on, but I think
it's important to say that not only do we feel the pain, but our our our fund, our teachers pension fund feels this pain also. So, when I just talked about the levy that we're 612 million last year, we levied almost 600 million. Half
of that is delayed. So, they're they're they're missing $300 million that they could be investing in the stock market or or wherever they invested at in the bond market. Um, but that's a pain point for them too. And we actually have to pay interest to them on the delay of the
tax levy. So that's another pain point for us um when these delays come in. So we have tried to communicate that with as many people as possible. So that's why I just raise it up for your awareness and and hope that somehow the little the grassroots plant.
Thank you. Thank you for all the wonderful news. Wall. The following slides list the standard monthly reports and motions that are listed in the agenda view committee meeting agenda and posted online. This concludes the board reports and
public agenda. Are there any comments or questions? We'll now move into executive session. Board member Bole, do you have motion two? I'm I'm going to I'm going to do this for board member Bole. She has some tooth issues. I move for the passage of
motion number 25-0813-2 and the commencement of a closed session to consider matters permitted under section 2C of the open meetings act subsection 1 2 and 11 as specified in the motion. Is there a second? I second the motion proceed with a roll
call. Member Lozano. Yes. Member Smith. Yes. Member Lopez. I. Member Bole. Yes. Member Wallace. I. Member Kuster. I. Member Pope. Yes. Member Rivas.
Yes. Member Rio Sierra. I. Member Brown. Yes. Member Bannon. Hi. Member Gutierrez. I. Member Biggs. Yes. Member Blae. Hi. Member Zachor.
Yes. Member Daring. Hi. Vice President Bautista. Yes. 17 eyes, zero nazs. This motion is adopted by the board. This meeting will now go into cold session.
Where's Sean? Oh, here it is. We're ready. The agenda review committee of the board of education is reconvene. Board secretary, please proceed. President Hard and I'd like to note for the record that there are no items to vote on from executive session.
Thank you. Is there a motion to adjourn? Make a motion. Is there a second? So moved. All in favor? I We are journ. Thank you.