>> CHICAGO IS CHANGING THE WAY ITS PUBLIC SCHOOLS ARE FUNDED INSTEAD OF BASING FUNDING ON THE LEVEL OF STUDENT ENROLLMENT AS IT HAS DONE FOR THE PAST DECADE, CHICAGO PUBLIC SCHOOLS SAYS IT WILL NOW TAKE A NEEDS BASED APPROACH.

THAT MEANS EACH SCHOOL WILL HAVE A CERTAIN NUMBER OF GUARANTEED STAFF, BUT ADDITIONAL RESOURCES WILL BE PROVIDED BASED ON AN ASSESSMENT OF NEED.

BUT SELECTIVE ENROLLMENT AND MAGNET SCHOOLS THAT ARE SET TO LOSE RESOURCES ARE PUSHING BACK WITH AT LEAST 4 SCHOOLS REPORTEDLY VOTING TO REJECT THEIR CURRENT BUDGET.

JOINING US NOW TO UNPACK THE CHANGES IS PEDRO MARTINEZ, CEO OF CHICAGO PUBLIC SCHOOLS.

WELCOME BACK.

THANK YOU FOR JOINING US.

THANK YOU FOR AN SO LET'S TALK A LITTLE BIT ABOUT THIS CHANGE.

GIVE US A BRIEF EXPLANATION, IF YOU WOULD, BECAUSE MANY FOLKS ARE QUITE FAMILIAR WITH HOW DISTRICT SCHOOLS ARE EVEN FUNDED.

WHY IS THE SHIFT NECESSARY?

YES, SO WE'VE BEEN USING WHAT WHAT IS CALLED A STUDENT-BASED BUDGETING MODEL, WHICH IS BASICALLY TAKING ENROLLMENT AND PRO, YOU KNOW, A FORMULA.

SO, FOR EXAMPLE, SCHOOL ACTS MIGHT GET 20 MILLION DOLLARS OF THEIR LARGE HIGH SCHOOL AND ELEMENTARY SCHOOL.

MY GET 8 MILLION DOLLARS.

>> AND TRY TO AUGMENT THE 4 MEN TO MAKE IT MORE NEED SPACE.

BUT WHAT WE'VE SEEN IS THAT IT'S NOT TRANSPARENT.

I CAN EXPLAIN TO YOU WHY THIS SCHOOL IS FROM THAT IS CERTAINLY VERSUS ANOTHER SCHOOL.

THERE'S A LOT OF HISTORY AND A LOT.

AND THINK A LOT OF INEQUITIES AS WELL AS VARIANCES ACROSS OUR SYSTEM.

>> IS IS THIS SHIFT IS SORT OF A SORT OF MIRROR THE STATE'S CURRENT EVIDENCE-BASED FUNDING MODEL WHICH WAS IMPLEMENTED BACK 2017 FROM YEARS AGO.

THAT SIMILAR.

IT DEFINITELY HAS THE SAME OBJECTIVE.

SO THE OBJECTIVE MEAN THAT EVERY SCHOOL NOW RECEIVE A FOUNDATIONAL LEVEL RESOURCES, REGARDLESS OF WHAT?

WHAT'S COOL, IT IS.

AND THAT A GUARANTEED A CERTAIN NUMBER OF TEACHING POSITIONS FOR THE FIRST TIME IN OUR DISTRICT.

EVERY SCHOOL HAVE AT LEAST 3 WEEK, A HOLISTIC POSITIONS, WHICH IS BASICALLY FOR PARENTS.

IT'S IT'S ACTUALLY A TEACHER THAT PROVIDE ENRICHMENT.

SO, FOR EXAMPLE, THE ARTS JIM AND PE AND THEN A 3RD TEACHER THAT CAN PROVIDE WORLD LANGUAGES.

COULD BE STAM OR WHATEVER ARE SOME OF THE PROGRAM TO BOTH THE PRINCIPAL AND THE ELYSEE AGREE TO.

>> PRIOR TO THIS BRAND IS OUR SCHOOL DIDN'T EVEN HAVE THE ARTS.

WHEN I ALMOST 3 YEARS AGO, VERY FEW OF ALL MEN SCHOOLS ARE TEACHERS.

WE STARTED DOING THAT, BUT WE WASN'T ENOUGH.

MEANWHILE, WE HAVE SCHOOLS THAT HAVE 6 ELECT US.

THEY HAVE 6 ENRICHMENT COURSES.

AND SO WE ARE SEEING SOME, YOU KNOW, SO THIS MODEL.

YOU KNOW, WE ARE WE DID SEE SOME OF OUR SCHOOLS AND HAVE A LOT OF RICH PROGRAM, WHICH, BY THE WAY, NONE OF THOSE SCHOOLS PROGRAMMING.

THEIR BUDGETS ARE TIGHTER.

THE BUDGET TIGHTER.

AND YOU SAID THIS, FOR EXAMPLE, YOU KNOW, YOU YOU FOR SCHOOLS WITH THE ELYSEES, YOU KNOW, RESPECT LEE SAID, LOOK, WE'RE SEEING THAT OUR BUDGETS ARE TIGHTER, I CAN GUARANTEE THE PROGRAMMING HASN'T BEEN REDUCED.

MEANWHILE, WE HAVE HUNDREDS OF SCHOOLS AND NEVER HAD EVEN A MINIMAL LEVEL PROGRAM.

ME THAT FOR THE FIRST TIME CAN PROVIDE OUT ON THE ART ONLY PEOPLE.

ANOTHER AND AND FOR US, OF COURSE, YOU KNOW, WE'RE GOING TO CONTINUE TO MAKE SURE WE SUPPORT ALL OF OUR SCHOOLS, THE EVIDENCE, BASE FUNDING IT'S IT'S A PHASED IN APPROACH, RIGHT?

CAN'T DEPOSIT.

WHAT WAS IT?

4 BILLION DOLLARS ALL AT ONCE.

SO THE STATE IS TAKING SEVERAL YEARS TO PHASE THAT IN.

>> WITH SOMETHING LIKE THAT, SORT OF A PHASE AND PROCESS HAVE BEEN POSSIBLE FOR CPS.

DOES THIS HAVE TO HAPPEN IN ONE MAJOR SHIFT?

WELL, HERE'S HIS ACCOUNT.

SO FIRST OF ALL, WE NOW AT THE HEART OF IT WERE UNDERFUNDED.

>> BY THE STATE'S OWN FORMULA AS WE BY A BILLION DOLLARS WITH A B IN ADDITION, WONDER FROM THE FOR PENSIONS.

WE DON'T HAVE A DEDICATED FUNDING FOR CAPITAL SO WITHOUT A FULLY FUNDED DISTRICT.

SO THEREFORE, WE DO FULLY FUNDED SCHOOLS IN THE MEANTIME, WE NEEDED TO MAKE SURE.

AND THIS IS MY COMMITMENT TO FAMILIES.

WE NEED TO MAKE SURE THE CHILDREN HAD THE BEST EXPERIENCE POSSIBLE AND THEY WERE PROTECTING TEACHERS.

WE HAD OVER 2000 TEACHERS SINCE THE PANDEMIC STARTED AND WE HAVE LESS CHILDREN TO THE EVEN THOUGH IT'S STABILIZED.

WE'RE PROTECTING ALL OF THOSE TEACHERS.

ONE PROBABLY BEEN IS WHAT I WAS SEEING WITH THE CURRENT WITH THE CURRENT BUDGETING PROCESS IS THAT OUR 10 YEAR TEACHERS, FRANKLY, WERE, YOU KNOW, MANY TIMES OUR SCHOOLS ARE, YOU KNOW, ASKING WHAT CAN I FOR THIS TEACHERS INSTEAD OF TRYING TO HIRE THE BEST TEACHER?

SOMETIMES THEY WERE SAYING, WELL, I CAN FOR AN EXPERIENCED TEACHER AND TIRED EXPENSE TEACHER.

WELL, YOU CAN IMAGINE THE CONSEQUENCES ON THE ACADEMICS OF THOSE SCHOOLS AND THIS PROCESS.

ALL OF OUR TEACHERS ARE PROTECTED PRINCIPALS DON'T HAVE TO THINK THAT WAY WITH THE CAN THINK ABOUT.

WAS THE BEST TEACHER, ONE OF THE BEST PROGRAMS THAT I CAN OFFER TO CHILDREN.

AND OF COURSE, CAN ATTRACT MORE CHILDREN, I'LL GET ADDITIONAL FUNDING.

BUT I ALSO KNOW THAT MY CHILDREN THAT ARE BELOW GRADE LEVEL WILL BE INTERVENTION.

TEACHERS WILL BE AFTER SCHOOL PROGRAMS FOR SELECTIVE ENROLLMENT AND MAGNET SCHOOLS.

LIKE I SAID, THE POINT NOT DECLINING.

BUDGETS ARE TIGHTER, THOUGH.

AND WE HAVE TO ACKNOWLEDGE THAT SOME OF THOSE SCHOOLS WILL DO FUNDRAISING TO OFFSET THAT.

WE WILL CONTINUE TO WATCH THOSE SCHOOLS BECAUSE TO THAT POINT, SPOKE WITH THE LSE CHEERLESS OUTLINE WHICH ACADEMY HE SAYS THE SCHOOL IS LOSING 7 POSITIONS.

>> OUT OF THE STAFF OF AROUND 28 TO 30.

SO THAT'S THAT'S WHAT IS IT ABOUT A QUARTER OF THE STAFF THERE?

SO THAT'S THAT'S PRETTY TIGHT FOR THEM.

DO YOU ARE DO YOU AND YOUR TEAM HAVE A SENSE YET OF HOW MUCH SOME OF THOSE SCHOOLS CAN EXPECT TO BE LOSING?

>> SO SO, YOU KNOW, ANY INCLUDING OUT, YOU KNOW, ONE OF THINGS THAT WE'RE SEEING IS THE FIRST OF ALL THE NOT WHAT THE VAST MAJORITY SCHOOLS AND NOT LOSING TEACHERS OF ANYTHING.

THEY'RE GAINING TEACHERS.

NOW, IN SOME CASES THERE MIGHT BE OTHER TYPE OF STAFFING THEY MIGHT HAVE TO ADJUST IN WHAT IN TO BE CLEAR IN THE CURRENT SYSTEM, WE WOULD JUST GIVE A SCHOOL LIKE US OUT AMOUNT SO THEY MIGHT GET 5 MILLION DOLLARS AND THEY DO WHAT THEY WANT WITH IT AND THE CURRENT SYSTEM.

NOW THEY HAVE SET TEACHING POSITIONS PLUS ADDITIONAL FUNDING TO ADD MORE 2 KEY POSITIONS AND CASE.

THEY DECIDED TO ADD MORE TEACHING POSITIONS WITH THEIR FUNDING AND WHICH, AGAIN, IS TO KEEP THE PROGRAM.

IT'S MADE THEIR BUDGET TIGHT.

IT HAS MEANS THAT THEIR CLASSES HAVE TO BE MORE REASONABLE IN FOR US.

REASONABLE MEANS.

26 STUDENTS ON AVERAGE PER CLASSROOM.

BY THE CONTRACTS ARE CLOSER TO 28 TO 31.

IT DOESN'T MEAN THOUGH, THAT, YOU KNOW, AGAIN, BUT IT'S LITTLE YOU CONTRACT, COURSE, CTU CONTRACT, WHICH HOPEFULLY WILL COME BACK IN JUST A MINUTE OTHER LARGE URBAN SIMILAR DISTRICTS TO CPS THAT OPERATE WITH A MODEL SIMILAR TO THIS.

AND WHAT EXPERIENCE CAN BE TAKEN FROM THAT.

SO VERY FEW DISTRICTS ACTUALLY USED BASE BUDGETING BECAUSE OF THE UNINTENDED CONSEQUENCES.

AND SO WE ARE ONE OF THE FEW DISTRICTS IN THE COUNTRY THAT WAS DOING AND ESPECIALLY WHEN OUR SCHOOLS ARE LOSING ENROLLMENT WAS HAVING SIGNIFICANT EFFECTS, ESPECIALLY IN OUR HIGHEST POVERTY AREAS.

>> AND SOME MORE SCHOOLS ARE DOING THAT THE WAY WE'RE DOING IT.

BUT I THINK WE'RE WE'RE EVEN DOING GOING BEYOND WHICH IS WE.

WE ARE ADDING ADDITIONAL RESOURCES TO MEET.

MEANS HE'S SO AND MANY DISTRICTS.

WE DON'T YOU KNOW SOMETHING.

THEY DON'T HAVE THE RESOURCES SO THEY WOULD LOVE TO HAVE INTERVENTION TEACHERS.

THEY WOULD LOVE TO HAVE ACADEMIC COACHES IN THE HIGHEST COVERED AREAS.

YOU DON'T ALWAYS HAVE THAT FUNDING.

WE ARE DOING THAT.

IN ADDITION ARE SELECTIVE ENROLLMENT AND MAGNET SCHOOLS WHO HAVE RICH PROGRAMMING.

WE MAKING SURE THEY CAN KEEP THAT PROGRAM AGAIN.

I WILL SAY IS GOING JUST THAT.

BUT YOU'RE GOING TO BE A LITTLE BIT TIGHTER.

WE'RE NOT A FULLY FROM THE DISTRICT.

AND SO THAT'S A CASE IT SPEAKING OF A TIGHT BUDGET, THE DISTRICT IS ALSO FACING THAT 391 MILLION DOLLARS FUNDING DEFICIT, PARTICULARLY BECAUSE THOSE FEDERAL COVID DOLLARS RUNNING OUT JUST ONE OF THE SEMESTER IS STARTING.

HOW FAR WILL THIS CHANGE GO TO HELP BRIDGE THAT FUNDING GAP?

SO AT THE SCHOOL LEVEL, BUT AS WE MAKE SURE, WE'VE SAID THAT WE'RE PROTECTING THE FUNDING AT THE SCHOOL LEVEL.

THAT DOESN'T MEAN THAT WE ARE HAVING TO FIND OTHER WAYS TO MAKE THOSE REDUCTIONS.

WE'RE GOING TO THE DEPARTMENT BUDGETS.

WE'RE LOOKING AT OUR VENDOR CONTRACTS WERE TRYING TO FIND EVERY EFFICIENCY THAT WE CAN.

I THINK WE'LL GET THROUGH THIS YEAR, BUT IT DOESN'T IT DOESN'T SOLVE THE PROBLEM FOR NEXT YEAR.

AND THIS YEAR WE HAVE ABOUT 300 MILLION DOLLARS LEFT.

THE FEDERAL FUNDING LEFT THAT WAS ON PURPOSE.

BY THE WAY, WE WE STRESS THAT THEIR FEDERAL FUNDING OVER 2 AND A HALF YEARS.

THAT MEANS NEXT YEAR.

WE HAVE ONE MORE YEAR TO REALLY WORK WITH SPRINGFIELD BECAUSE, AGAIN, WE'RE NOT WE'RE NOT FULLY FUNDED.

AND SO MY HOPE IS THAT OUR LEADERS YOU KNOW, AT THE STATE LEVEL, THEY DIDN'T CREATE THIS PROBLEM.

BUT I THINK IT'S TIME TO PARTNER WITH US WITH MAYOR WHERE UNIONS REALLY TRY TO SOLVE BUT IT'S EXPECTED THAT BUDGET DEFICIT EXCUSE ME EXPECTED TO GROW TO 700 MILLION TONS RIGHT IN THE FOLLOWING SCHOOL YEAR.

THE DISTRICT IS ALSO TAKING A BIT OF CRITICISM OVER TRANSPARENCY OF THESE INDIVIDUAL SCHOOL BUDGETS, WHICH ARE TYPICALLY RELEASED TO THE PRESS AROUND.

NOW BEFORE EVER REMEMBER SEVERAL YEARS AGO.

>> IT WAS THE SUMMER BEFORE THEY CAME OUT.

VERY EXTREME CIRCUMSTANCES.

THERE WHEN DO YOU EXPECT THE REST OF US WILL GET TO WHAT OUR SCHOOLS ARE WORKING WITH.

WENT ONE OF THE GOALS OF THIS BUDGET PRICE BE A LOT MORE TRANSPARENT.

AND LET ME EXPLAIN WHAT THAT MEANS.

WE, FOR EXAMPLE, EVEN BEFORE THE BUDGET WILL NOT THE SCHOOLS WE SHARE WITH PRINCIPALS AND EVEN WITH THE PRICE.

>> WHAT THE FORMULAS WERE.

SO, FOR EXAMPLE, YOU COULD SEE OK, BASED ON WALTER PAINS ENROLLMENT.

WHAT IS ACTUALLY HOW MANY TEACHERS ARE THEY GOING TO HAVE?

HOW MUCH LAX WILL FUNDING THAT THEY HAVE?

IF YOU HAVE A SCHOOL THAT HAS HIGHER NEEDS LIKE MY ALMA MATER, BONITA HIRES.

WHAT IS THEIR MOMENT?

HOW MANY TEACHERS WHERE THEY HAVE WILL BE THE STUDENT TEACHER RATIO?

SO THAT HAS BEEN ACTUALLY BEEN, YOU KNOW, WE MADE THEM OR MORE PUBLIC.

WHAT I HOPE, YOU KNOW, WILL BE ABLE SHOW EVERYBODY IS WHEN THE BUDGET OR DON WILL BE ABLE TO SHOW, FIRST OF PROTECTING OUR TEACHERS SCHOOLS HAVE WHAT THEY NEED THERE IS, BUT THEY'RE GOING TO BE DIFFERENT DATABASE TIME BASED ON THE POVERTY BASED ON THE NEEDS OF THEIR CHILDREN AND WILL BE WITH A SHOW SCHOOL BY SCHOOL.

IT IS.

BUT IT IS A DIFFERENT MODEL.

IT'S A YOU KNOW, THIS IS THE FIRST YEAR WE'RE DOING THAT.

AND SO I JUST ASK THE PUBLIC POLICE CONTINUE TO BE PATIENT WITH US.

BUT NOW WHAT I'M HEARING OVERALL PANDAS FROM OUR SCHOOL LEADERS FROM THE MAJORITY OF OUR FAMILIES, INCLUDING TEACHERS, IS THAT THIS IS THE RIGHT DIRECTION BECAUSE IN THE CURRENT SYSTEM, MANY OF THE TO THE CONSULATE WORKER, INCLUDING AGAIN, OUR TEACHERS HAVING BE WORRIED IF THEY WERE 10 YEAR THEY WERE EXPERIENCE, THAT THEY MIGHT BE ACCEPTED AT A SCHOOL ARE, YOU KNOW, MANY SCHOOL THAT THEY HAVE, YOU KNOW, EVEN THE MINIMAL AMOUNT OF PROGRAMMING THAT THEY NEED.

IT.

SO AGAIN, WE'RE GOING TO CONTINUE TO MAKE SURE WITH THE SUPPORT IT.

>> JUST ABOUT A MINUTE LEFT CITIES ALSO SOME JUST NOW STARTING NEGOTIATIONS WITH THE CHICAGO TEACHERS UNION WHOSE CONTRACT IS COMING TO AN END THIS SUMMER.

WE ALL KNOW WHAT HAPPENED WITH THE LAST CONTRACT.

THERE'S A LITTLE STRIKE THAT THEY HAD BEFORE THE CONTRACT WAS COMPLETED.

ARE YOU ANTICIPATING THE COST OF THAT CONTRACT IN THIS BUDGET?

>> SO BRANDS WE DON'T HAVE THAT BUILT INTO THE BUDGET.

WE DID AT LEAST HAVE AN INITIAL SETTLEMENT WITH WHERE WE SETTLED ON 4% RAISE AND IF THESE ARE LOWEST PAID EMPLOYEES.

AND ALSO MAKING SURE THAT THEY BECOME INTIMATE $40,000 THEY WORK FULL-TIME.

I AM HOPEFUL THAT WE'RE GOING TO PRODUCTIVE NEGOTIATIONS WITH OUR TEACHERS UNION.

WE VALUE OUR TEACHERS.

LIKE I SAID, WE'RE PROTECTING OUR TEACHERS IN THIS BUDGET.

I THINK THE GOAL IS WE HAVE TO WORK TOGETHER SECURE MORE FUNDING FROM THE STATE.

AND I KNOW THAT THE MAYOR IS COMMITTED TO THIS SKATES IS COMMITTED TO THIS.

AND SO THAT'S WHAT I'M LOOKING FORWARD TO.

>> ABOUT 30 SECONDS, HOW ARE YOU EXPECTING NEGOTIATIONS TO GO OR TO BE YOU WEREN'T AROUND FOR FOR THE LAST ONE, BUT OBVIOUSLY YOU HEARD WHAT HAPPENED, BUT ESPECIALLY CONSIDERING THE RELATIONSHIP BETWEEN CTU AND THE CITY ADMINISTRATION.

I HOPE THAT THE MUCH MORE CORDIAL BECAUSE OUR FAMILIES ARE NOW ENJOYING THE STABILITY WERE SEEN.

AMAZING RESULTS IN OUR SCHOOLS, INCLUDING ELEMENTARY AND HIGH SCHOOLS.

>> SEEING RECORD GRADUATION RATES WERE THE NUMBER ONE DISTRICT IN THE COUNTRY FOR READING RECOVERY.

AND SO THIS IS HAPPENING BECAUSE WE SEE INSTABILITY.

I KNOW THAT OUR MAYOR, I KNOW THERE ARE 2 UNION LEADER SEE THAT.

SO I'M HOPEFUL THAT THIS IS GOING TO BE CORDIAL.

BUT AGAIN, WE ARE GOING TO HAVE TO ADVOCATE