Chicago Public Schools Debt Has Hit Over 28,000 Per Student. Heres What That Means.

Chicago Public Schools (CPS) faces nearly $10 billion in debt, equivalent to its annual budget, with a per-student debt of over $28,000, up from approximately $17,000 in 2013. This financial burden places CPS third in debt among the nation’s largest school districts, raising alarms about its fiscal health. As enrollment declines and aging buildings require costly maintenance, district leaders are divided over potential new borrowing strategies. The Chicago Board of Education will vote on a spending plan that restricts high-cost borrowing, while Mayor Brandon Johnson's allies advocate for short-term loans to meet pension obligations and avoid budget cuts. CPS holds a junk bond rating from Moody’s, resulting in higher borrowing costs compared to other districts.

This year, CPS plans to allocate about $395 million in state funds meant for educational purposes to cover debt payments. Experts emphasize the need for CPS to enhance its credit ratings and explore new revenue streams to manage its growing financial obligations. The district's debt has ballooned due to repeated bond issues over the past two decades, raising questions about sustainability and fiscal responsibility.