April 15, 2026
Dear Members of the Chicago Board of Education:
In light of concerns raised about HB4416, a bill that aims to extend unemployment benefits to non-instructional employees of public schools during the summer months when school is not in session, the Civic Federation has reviewed the bill and its potential impacts.
The Federation is deeply concerned about the adverse consequences this bill would have for school districts statewide, especially Chicago Public Schools (CPS). The Federation does not object to the goal of providing unemployment benefits to seasonal school district employees during the summer. However, it emphatically opposes any unfunded mandates to local governments, including school districts. This bill could impose hundreds of millions of dollars in costs on Illinois school districts without providing them with commensurate funding. Many school districts operate tightly balanced budgets with few options for additional revenue, and some are likely to be driven into fiscal crisis by the sudden addition of substantial costs.
For Chicago Public Schools, this bill could add annual costs of up to $100 million. However, CPS cannot simply raise additional revenue to match this new cost. As a non-home rule government, the only major tax CPS has the authority to levy is the property tax, which is subject to an annual cap under State law. Moreover, due to longstanding fiscal pressures, CPS already raises its property taxes by the maximum amount allowed by State law each year. Most of the District’s remaining revenue comes from the State or the federal government. Thus, CPS would have no way to raise new revenue to meet the otherwise unfunded obligations imposed by this legislation.
With no available revenue options, CPS would likely be forced to offset these new costs with curricular and classroom cuts, directly harming students. This would likely mean reductions in staffing and cuts to programming and services for students. CPS already faces a significant structural budget deficit that will force it to make difficult decisions in its coming fiscal year, even without this added burden. The same story is true in many other school districts throughout Illinois.
The Civic Federation urges the Chicago Board of Education to work in coordination with other school districts to oppose HB4416. The Board and other districts should call on the Illinois General Assembly to refrain from passing any unfunded mandates and making any decisions that make precarious financial situations worse for CPS and school districts throughout Illinois.
Sincerely,
Joe Ferguson
President