Chicago Public Schools Fiscal Year 2017 Budget

How to use this site

Users will be able to find documents and use interactive tools to help them better understand the proposed CPS budget for fiscal year 2016. The interactive features allow users to easily click through the budget, drilling into specific budget line details or staying at a high level overview of the District.

Users can view a number of areas of the budget including revenue and debt while also looking at every CPS school and department. Each interactive report generates graphs and charts which will make budget comparisons visual and easier to understand.

Check out our Reader's Guide for more information.

Download your own copy of the FY17 Amended Budget Book.

Download your own copy of the previous FY17 Approved Budget Book.

We want to hear from you! Please provide feedback and ask questions by contacting us.

CPS received the GFOA Distinguished Budget Presentation Award for our FY2016 online budget site.


Organization Chart

Capital

Update November 21, 2016: The FY2017 amended budget increases appropriations for capital projects from $338M to an amount not to exceed $945M. This increase of up to $607M will be funded from proceeds of additional bonds. The actual amount of increased appropriation for capital projects will be reduced commensurate with the actual amount of bond proceeds received from the sale of the bonds.

The FY17 budget for Chicago Public Schools includes a capital plan totaling $338 million for school repair, improvement, modernization, and overcrowding relief.

The fiscal uncertainty CPS faced in the spring precluded the District from releasing a comprehensive capital plan. Since then, however, support from Springfield has given CPS the ability to balance its operating budget and put forth a capital plan that addresses many of the District's needs.

This year's capital budget includes $266 million of funding provided by CPS through bond financing, and $72 million from the City of Chicago and Federal E-Rate funding. The $266 million of CPS funding represents a significant increase from the $90 million proposed for FY17 in last year's 5-year plan. This increase is due primarily to the new Capital Improvement Tax levy approved by the Board and passed by the City Council in 2015.

The Capital Improvement Tax (CIT) levy is an annual property tax levy dedicated exclusively to school construction projects. In order to provide much needed overcrowding relief, major facility repairs and improvements, and upgrades to the District's IT infrastructure, CPS plans to issue bonds to fund capital projects, using the annual CIT levy to fund debt service and principal payback on the bonds.

As of the FY17 budget release, CPS is working to determine the total amount of bond proceeds that can be raised against the CIT levy. As such, this capital budget includes only $233 million in CIT-bond funded projects. (An additional $33 million from CPS' July bond issuance will be used to fund FY17 capital projects.) CPS expects to issue a supplemental capital budget in the fall to account for the remainder of the proceeds. This will give CPS additional time to receive community input and further prioritize the projects funded by bond proceeds.

Under the leadership of Mayor Rahm Emanuel, CPS and the Board of Education have provided over $1.7 billion since FY12 to build new schools, provide playgrounds and air conditioning, improve access to technology with new computers and expanded bandwidth, expand academic programs (career and technical education programs, for example), and make core investments in our facilities to repair roofs, fix chimneys, and replace or repair boilers and other mechanical systems. This has been done to ensure students have a high quality learning environment to support their education.

Today, nearly $400 million in capital projects are underway at over 60 schools, each supporting this vision of expanding high-quality academic options for families across the city.

CPS' 5-year capital plan will include investments in overcrowding, deferred maintenance, targeted site improvements and emergency projects. Given the uncertainty of funding going forward, however, a comprehensive plan is not available at this time; full details on the FY17 Capital Plan are available at the Capital Plan website - www.cps.edu/capitalplan. This plan will be updated with the supplemental plan that will be announced this fall.

 

Addressing Classroom Overcrowding

Last year's capital plan included only $10 million in investments to relieve classroom overcrowding. As such, CPS is dedicating $119 million in bond funds – plus $54 million in TIF funds – toward this effort. The FY17 capital budget includes investments at some of the District's most overcrowded schools. Annexes at Byrne (135% utilization rate), Skinner West (120%), and Zapata (140%) and modular classrooms at Dawes (138%) and Bridge (231%) will provide necessary additional space for each school.

Additionally, the FY17 capital budget includes investments in new buildings to relieve overcrowding at Dore (170% utilization rate) and South Loop Elementary School (126%). The South Loop Elementary School expansion will be funded entirely by TIF proceeds.

 

Prioritize Building Needs

The current FY17 capital plan proposes $32 million in investments to address our most urgent facility needs. As CPS works to prioritize the needs across the District, the FY17 capital budget provides $20 million of funding for emergency facility repairs and $6 million for minor maintenance repairs across the District. These funds are essential in managing the emergency work that arises throughout the year.

The FY17 budget also includes nearly $6 million in funding for Emergency Plumbing Repairs, for any schools in which lead abatement projects are necessary. $0.5 million for student ADA accommodations is also included.

CPS anticipates including additional building condition projects in a future supplemental budget this fall once our funding capacity is determined and projects are prioritized according to our latest building assessments.

 

Technology, Programmatic and Other Investments

The FY17 capital budget includes $108 million for additional investments in technology, programmatic, and air conditioning upgrades to CPS buildings.

Continuing to improve school internet access for enhanced learning. With the assistance of $18 million from the federal E-Rate program, CPS is investing nearly $51 million to upgrade internet access in classrooms to support 21st century learning opportunities. This initiative will ensure that every elementary school will have a minimum Internet bandwidth of 100mb and each high school 1GB, further enabling online learning and moving the district towards its goal of supporting one to one device connectivity at every school.

In addition to the upgrades to school internet access, CPS is investing nearly $6 million in IT infrastructure and systems upgrades and $0.9 million in new security cameras and metal detectors to help ensure student safety.

Investments in educational programming. The FY17 capital budget includes investments in new educational programming at three schools: Dyett HS, Dunbar HS, and William H. Brown ES.

Dyett HS will re-open for the 2016-17 school year as an open enrollment neighborhood school with a focus on the arts. CPS is investing over $14 million dollars to renovate Dyett and establish a preeminent arts program within the school.

Dunbar HS will begin the 2016-17 school year with Chicago's first comprehensive trade program, Chicago Builds, focusing on employment in the construction and building trades. An investment of $4.4 million will provide new labs and equipment to train a citywide cohort of students in skills to pursue careers in these fields.

William Brown ES will add Science, Technology, Engineering and Math (STEM) programming in the 2016-17 school year, as CPS invests $4.7 million in classroom and lab space to accommodate the new programming.

Air conditioning in classrooms. The FY17 capital budget includes $27 million to install air conditioning at 61 schools, completing the Mayor's initiative of installing air conditioning in every classroom. Since announcing in 2013 a 5-year plan to install air conditioning in every classroom, the plan has been completed substantially ahead of time and under budget. The schools and campuses receiving air conditioning investments in FY17 are outlined in the table below.

 

Table 1: FY17 Air Conditioning Investments

Amundsen HS

Kilmer

Richards HS

Bennett

King ES

Roosevelt HS

Bogan HS

Lake View HS

Ruggles

Bouchet

LaSalle II

Shoop

Chicago Tech Academy

Lincoln Park HS

Stagg

Clark, G

Lovett

Suder

Cook

Lowell

Sullivan HS

Cooper

Madison

Sumner

Crown

Manley HS

Tanner

Darwin

Mann

Tilden HS

Dunbar HS

Marshall HS

Till

DuSable Campus

Mason

University of Chicago Chtr - Donoghue

Epic Charter HS

North Lawndale Charter - Christiana

University of Chicago Chtr - Woodlawn

Field

Parkside

University of Chicago Chtr - Woodson

Foreman HS

Peace & Education HS

Urban Prep Chtr - West

Gage Park HS

Perez

Warren

Gale

Perspectives Charter - IIT

Wells HS

Graham

Perspectives Charter - Leadership Academy

Whistler

Harlan HS

Phillips HS

Yates

Hirsch HS

Phoenix Military HS

 

Kelly HS

Piccolo

 

 

Transparency

The District's FY17 Capital Plan is available on the interactive capital website at cps.edu/capitalplan, providing community members with easy access to detailed information on all capital projects that are planned and underway. The site allows users to quickly select projects by school, geographic area, type, and year. It also allows users to scroll over an interactive map to gather details by area. The site has been designed to encourage public engagement and comment.

Over the next few months, CPS will engage communities as we develop a supplemental capital plan to address overcrowding relief, deferred maintenance, and targeted school improvements with the proceeds of bonds issued against the Capital Improvement Tax levy.

 

Sources and Uses

The FY17 Capital Budget totals $337.5 million and will be funded by a combination of CPS resources, state funding, a federal grant, and TIF funding. In total, approximately $266 million comes from CPS resources, and $72 million comes from outside support. Below is a summary of the sources and uses of the FY17 Capital Budget by project type.

 

Table 2: Sources and Uses (In Thousands)

Sources  
Debt Proceeds $265,907
Federal Grants 17,600
TIF Funding 54,000
Total FY16 Capital Budget Sources $337,507
Uses  
Building Repairs and Modernization $ 116,657
 Facility Needs 12,230
 Air Conditioning 27,000
 IT & Other Projects 57,427
 Contingency 20,000
 Programmatic Investments $23,760
Relieving Overcrowding $173,180
   
Other $23,910
 Capital Project Support Services 1,000
 Legal/Regulatory Requirements 3,500
Total FY16 Capital Budget Uses $337,507

 

Impact of FY16 Capital Projects on Operating Budget

All projects considered for inclusion in the annual capital budget are analyzed for their projected impact on the District's operating budget. For some projects this year, the capital investment supports a programmatic or academic investment in the operating budget, and both the operating and capital investments were approved concurrently. In other instances, we expect to see savings, such as energy savings, but these are difficult to quantify. Below are details of the operating impact by project type, with savings expressed as a negative number in parentheses and additional operating costs expressed as a positive number.

 

Overcrowding Relief

Modulars and Annexes $2.1 Million

The addition of new modulars at Dawes and Bridge, annexes at Byrne, Skinner West, and Zapata, and new buildings for South Loop and Dore increases the overall need for facilities support personnel, district utility costs, and building maintenance costs. We estimate this total to be approximately $2.1 million annually.

 

Facility Needs

Emergency Facility Repairs and Maintenance Energy Savings

Investments in facility repairs and maintenance are expected to have a small positive impact on the operating budget through energy savings. Repairing roofs and windows and replacing old mechanical equipment will allow CPS to heat and cool its buildings more efficiently. These repairs and replacements, once addressed, also free up building maintenance personnel to focus on other building needs. ADA accommodations to buildings will have no additional operating budget impact.

Emergency Plumbing Upgrades No Impact

Replacement of plumbing fixtures and upgrades to building plumbing systems will have no impact operating budget. There is potential for limited operating savings as any newer fixtures require less maintenance than older fixtures.

 

Facility Upgrades

Air Conditioning $0.5 Million

The installation of air conditioning throughout the District creates an increased demand for electricity. The cost of the additional electricity varies with weather conditions as well as other factors, but we estimate the increase in annual utility costs during typical usage to be $0.5 million.

 

IT & Other Projects

Information Technology and Other Projects ($5 Million)

The Information Technology (IT) projects in the FY17 capital budget consist of infrastructure, hardware, or software implementation that does not trigger any additional operating costs. The ongoing support for these projects will be absorbed by current available staff, resulting in no increase to the District's operating budget. The upgrade to HR systems and Student Information Systems Replacement will drive operating savings once implemented as the new systems will free up staff time. Additionally, the Asset Management System will result in an estimated $5 million in operating savings in year one once fully implemented.

New security equipment will add additional costs to the operating budget for maintenance and repair of additional equipment, however we expect these costs to be limited as we fit the new equipment into our current maintenance and repair plan. The new equipment associated with the School Data Network and Wireless Upgrades project will cost less than current equipment to maintain, but revised maintenance costs are still to be determined.

 

Programmatic

Programmatic Investments and Dyett HS, Dunbar HS, and Brown ES $1.9 Million

The re-opening of Dyett HS will result in an operating impact of $1 million for operating and maintaining an additional building and operating investments associated with the new arts program. Base instructional costs will not be impacted, as funds for those students would be allocated elsewhere if the students had enrolled at another school. Operating investments in new programming at Dunbar and Brown will add an additional $0.9 million to the operating budget.

 

Other

Capital Project Support Services/Legal Requirements ($23.9 million)

Capital Project Support Services and Legal Requirements are paid out of capital funds because of their sole focus on capital-funded projects. Due to this funding classification, the operating budget is able to spread the cost of these items over several years, saving $23.9 million in operating expenses in FY17.

 

Capital Projects Funds

The Summary of Capital Projects Funds table shows capital revenues and capital outlays (expenses) to be incurred in FY17 regardless of the year the project was appropriated. The Fund Balance (unspent revenues received in prior years) accounts for the difference in expected FY17 capital outlay versus revenues. For example, if the District raised $400 million in bond proceeds during a fiscal year but only expensed $300 million in the same time period, the remaining $100 million would carry forward in the Fund Balance for use during the following fiscal year.

 

Table 3: FY14 - FY16 Summary of Capital Projects Funds (In Millions)

  FY15
Actual
FY16
Estimate
FY17
Estimate
Beginning-Year Fund Balance $ (92.0) $ (133.9) $ (87.8)
   
Revenues  
Local 155.5 96.6 39.4
State 32.1 33.6 14.8
Federal 6.4 0.3 6.0
Total Revenue 194.1 130.5 60.2
   
Expenditures  
Capital Outlay 384.5 266.4 227.1
   
Bond Proceeds 148.5 357.6 331.0
Transer Out to Debt Service Stabilization Fund 0.0 0.0 0.0
   
End-of-Year Fund Balance $ (133.9) $ (87.8) $ 251.9

 

Local revenue of $39.4 million includes $29 million from reimbursements from TIF-related projects and $10 million from other local funding sources.

The state revenue total is comprised of $13.3 million in gaming revenue for new construction projects and $1.5 million from Illinois Green Infrastructure Grants for prior year capital projects.

The federal revenue total is an expected $6 million in Federal E-Rate funding for upgrades to the District's IT infrastructure.

Table 3 outlines capital funds spent each fiscal year by the year in which the funds were appropriated. For a more detailed view into FY16 spending, CPS will publish a report by September 30, 2016 that offers a breakdown of funds by project, source, and other categories.

 

Table 4: Capital Spending by Year (FY13 - FY17)

  Total Appropriation FY2013A FY2014A FY2015A FY2016E FY2017E Remaining Appropriation
Prior Year/Other Expenditures 419.2 118.2 82.5 10.2 16.5 -
FY2013 Capital Budget 473.3 74.3 310.7 23.6 1.2 0.5 63.0
FY2014 Capital Budget 347.5 - 84.7 125.8 73.9 25.1 38.0
FY2015 Capital Budget 509.9 - - 152.6 119.1 49.4 188.9
FY2016 Capital Budget 160.3 - - - 62.1 44.5 53.7
FY2017 Capital Budget 337.5   - - - 91.1 246.4
Total Spend by Year   $493.5 $513.6 $384.5 $266.4 $227.1 $590.0
All values in millinons A = Actual  E = Estimated

 

Changes to FY17 Budget from FY16 Five-Year Capital Plan

Last year, as part of the District's Five-Year Capital Plan, CPS proposed $90 million in capital investments for FY17. As discussed previously, the District's need to relieve overcrowded classrooms and additional funding from the new Capital Improvement Tax have allowed CPS to increase its FY17 contribution to capital projects to $266 million.

Table 4 lists the school-based projects added to the FY17 Capital Budget from last year's five-year plan.

 

Table 5: School Projects Added to FY17 Capital Budget

Project CPS Funded Outside Funded
Overcrowding Relief $119,180,000 $54,000,000
 Byrne - Annex $20,000,000 -
 New School - Dore ES 44,240,000 -
 South Loop Elementary Expansion - $54,000,000
 Skinner West - Annex $20,000,000 -
 Dawes - Modulars $7,500,000 -
 Bridge - Modulars $5,200,000 -
 Zapata - Annex $22,240,000 -
Programmatic Investments $23,760,000
 Dyett $14,620,000 -
 Dunbar - CTE Program $4,440,000 -
 Brown, W - Program Improvements $4,700,000 -
Air Conditioning $27,000,000

 

Seven projects to relieve overcrowding were added to the FY17 capital budget as CPS did not have sufficient resources in the FY16 capital budget to address District overcrowding issues.

New programmatic investments are included in the FY17 capital budget to re-open Dyett HS and establish new educational programming and Dunbar HS and William Brown ES.

CPS also increased its commitment to complete the plan to add air conditioning to every classroom in every school. 61 schools, listed previously, will receive air conditioning to create more comfortable and more productive learning environments in classrooms.

 

Page Last Modified on Tuesday, November 22, 2016