The Pandemic Wasn’t a Bailout — But CPS Treated It Like One

Michael Kessler
Aug 22
2 min read

CHICAGO, IL — August 22, 2025

[OPINION] The money meant to rescue kids rescued the budget instead. The cliff isn’t coming. It’s here.

[FACT] Chicago Public Schools received nearly $2.8B in federal COVID relief across ESSER I–III.

[FACT] By FY2024, CPS had spent about 92% (~$2.6B), with roughly $233M planned for FY2025.

[FACT] Much of the plan emphasized personnel/operations, including paying existing staff.

“This money was supposed to build bridges for kids,” said Michael Kessler, author of the report. “[OPINION] CPS used it to time-travel—fixing yesterday, leaving tomorrow unfunded.”

What the receipts show

[FACT] FY2020: CPS extended property-tax revenue recognition into late October, pulling revenue forward to smooth results.

[FACT] $11M moved from debt/lease levies to the General Fund (“savings” sweep) in FY2020.

[FACT] CPS issued $1.33B in TANs during FY2020; $500M remained outstanding on June 30, 2020.

[FACT] By FY2022, total CPS debt was ~$9.6B; that year included ~$372M in refundings.

[FACT] Pension payable at 6/30/2020 stood at $232.4M (booked, cash paid later).

[OPINION] Translation: one-time cash masked structural gaps. When the one-time cash ends, the gaps don’t.

Why parents should care

[FACT] CPS itself projects the last tranche of ESSER funds in FY2025—about $233M—after spending ~92% already. The relief cliff follows.

[OPINION] When the tide goes out, tutoring, staffing, and school-based budgets feel it first.

The pattern (plain English)

[FACT] Use yesterday’s fixes today: Heavy reliance on refundings and short-term borrowing to buy time.
[FACT] Blur the lines: Shift “savings” from restricted debt/lease levies into operations.
[FACT] Move the goalposts: Extend revenue-recognition windows in unusual years to balance the story. (CPS again extended recognition during the 2023 tax delay.)
[FACT] Make it people-heavy: Pandemic relief widely used to sustain personnel/operations.

[OPINION] That’s budget duct tape. Not a plan.

What we’re asking CPS to do—now

Publish the ledger.
[OPINION] Put every ESSER dollar on a project-by-project page; show the COVID link, time/effort, and outcomes.
Stop the shell game.
[FACT] No more transfers from restricted levies to operations without a public vote and posted legal opinion.
Fix the clocks.
[OPINION] Lock a uniform revenue-recognition policy; flag any exceptions—in bold—so the public isn’t misled.
[FACT] (CPS disclosed recognition extensions in 2023 due to county delays.)
Tell the truth in big letters.
[OPINION] Split one-time vs recurring on the first slide of every budget deck.
Pay pensions on time.
[FACT] Year-end payables have been a thing; end the practice and publish on-time targets.
Build the cliff off-ramp (24 months).
[OPINION] Trim with a scalpel (program reviews, vacancy controls), re-phase contracts, and right-size debt service—quarterly milestones, public dashboard.

About the report

[FACT] The Investigative Report on CPS Financial Practices (FY2018–FY2024) synthesizes CPS ACFRs, budget books, and public disclosures; it documents 92% ESSER utilization through FY2024, $11M FY2020 levy-to-operations transfers, revenue-recognition extensions, TANs usage, and debt growth through FY2022.

[OPINION] Kids don’t read CAFRs. Parents shouldn’t have to. Give them receipts they can understand.