C
hicago Public Schools CEO Pedro Martinez is seeking nearly $1 billion from the city's tax-increment financing (TIF) districts to address the school district's budget crisis. Martinez, in a recent interview, argued that using TIF surplus funds would be a more sustainable solution than taking out a loan or cutting expenses. The proposal comes as tensions rise between the Chicago Teachers Union, Mayor Brandon Johnson's administration, and Martinez over how to handle the district's financial challenges.

    Martinez believes the city's annual $1.2 billion in TIF funds can help cover expenses such as a $175 million pension payment and anticipated salary increases for union staff without burdening taxpayers or risking teacher layoffs. He has been meeting with City Council members to make his case, outlining a plan that would nearly double last year's record TIF surplus of $434 million.

    Some council members have expressed support for using existing resources rather than borrowing money at high interest rates. However, others are opposed to the idea, arguing that TIF funds are intended for economic development, not operational expenses. The teachers union has also proposed terminating TIF districts altogether, which they claim could unlock $1 billion in funds to support public school programs and prevent layoffs.

    Martinez is expected to present his proposal in detail during a budget hearing later this month.