logo
Paul Vallas: CPS budget is responsible, but avoids structural fixes

Paul Vallas: CPS budget is responsible, but avoids structural fixes

Chicago Public Schools interim CEO Macquline King has presented the most responsible budget possible under current conditions, especially considering the strong influence of the Chicago Teachers Union and a mayor committed to prioritizing union interests over all other considerations.
King's plan solidly protects local school funding without worsening the district's immediate financial health. However, it disappointingly avoids structural fixes — guaranteeing Chicago will face a similar budget crisis next year. The plan clearly elevates CTU priorities above student needs.
CPS' budget presentation balances the 2026 budget with the following measures:
The district will continue to receive 56% of all property revenues paid by city residents and business while the city will provide the district with almost $1.1 billion in additional subsidies. This includes at least $557 million in the dedicated teacher pension city property tax levy, $379 million in TIF property tax windfall and almost $100 million in debt service on school district capital bonds.
The district's budget materials understate a significant increase in property tax revenues. While the district claims deficit progress, its own projections show future budget holes growing — even assuming the property levy is raised to its legal cap limit each year. To her credit, the CEO has proposed hundreds of millions of cuts, but the larger question remains: How will CPS resolve future budget shortfalls?
The oft-repeated claim — CPS needs $1 billion more in state funding for adequacy — is simply not supported by facts. CPS spends $30,000 per student, more than the state average, but delivers poorer results.
Despite cuts, staff levels in the new budget are 16% higher than in 2019, while student enrollment has dropped 8.5%. The proposed staffing ratio is now one position per seven students — a troubling inefficiency. Meanwhile, the district spends $100 million yearly on 20 near empty schools and wants to spend $1 billion on capital improvements. Despite the 20 schools averaging one employee per four students, just one in 10 kids read at grade level, and in several, it's zero. At the same time the campaign to close public charter schools or convert to CTU member district schools will drive up costs of those schools.
On the academic side the proposed $10.2 billion budget will further reduce standards and accountability that will deny poor families alternatives.
Meanwhile, CPS continues to shift away from student-based budgeting in favor of the CTU-backed 'Sustainable Community School Model,' which prioritizes not enrollment but perceived needs regardless of outcomes. The district is set to increase its current 20 'community schools' to 70 under this model despite the existing such schools lagging the district average by most measures including academic proficiency and attendance.
King is doing her best under enormous pressure, but record-sized union contracts and inefficient CTU-driven policies continue to drive up costs and degrade both the quantity and quality of educational choices. The budget sustains CTU priorities at the expense of needed reforms, deeper efficiencies and, ultimately, the interests of Chicago's students.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Editorial: CPS doubles down on ‘sustainable community schools.' Where are the results?
Editorial: CPS doubles down on ‘sustainable community schools.' Where are the results?

Yahoo

time4 hours ago

  • Yahoo

Editorial: CPS doubles down on ‘sustainable community schools.' Where are the results?

Education is the great equalizer, and we believe everyone should have access to a good one. So we took notice when Mayor Brandon Johnson announced late last week that the city would be nearly doubling the number of so-called sustainable community schools in the city. What is a sustainable community school? It's a model — widely supported by teachers' unions — which turns public schools into community hubs offering services such as housing and food assistance, medical and dental care, mental health support and classes, including parenting or English for non-native speakers. Right now, Chicago Public Schools has 20 of these schools, but the number is going up to 36 — with more to come after that. Each of these schools costs an extra $500,000 annually, so adding 16 will cost an additional $8 million next year. You may be asking yourself why, when the district has a deficit of hundreds of millions of dollars it needs to sort out by the end of the month, that Johnson is announcing this. Well, it's simple: The new Chicago Teachers Union contract requires an additional 50 sustainable community schools by the end of its four-year term. To some degree, the district's hands are tied. We should say here that we don't think the idea of sustainable community schools is meritless. It makes sense that low-income and disadvantaged kids may need more to succeed than just the three Rs. But is the sustainable community school model the way? Let's look at the track record of these schools in Chicago. Chalkbeat reported that since 2018, enrollment at the 20 schools in the program has dropped by 15%, with six of them losing more than a quarter of their students — a far steeper decline than the district as a whole. And many of these schools are among the city's worst-performing academically. We'll allow that numbers don't tell the entire story when it comes to a program such as this one, but they're not meaningless either. And so far they're downright discouraging. Johnson, the former CTU organizer who has spent his mayoralty attempting to make his former employer's demands reality no matter how unaffordable or questionable, doesn't think we should be considering metrics at all. He dismisses using test scores or graduation rates to gauge success, defining the effort's worthiness instead as 'when every child has everything they need.' Perhaps that's because the data don't support this investment. Even the most ardent public school advocate should never say something like that. Just like any other program, sustainable community schools need to justify their investment, and they do so at least in part by demonstrating measurable success. Here's the reality. The situation with Chicago's low-income kids warrants urgent attention. Among low-income CPS students, just 22% are proficient in reading, 12% in math, and nearly half miss 10% or more school days. Those numbers cry out for meaningful solutions. Improving this woeful reality is challenging, and schools aren't well-positioned to be everything to everyone. The best thing schools can do is help foster stability. An environment of reassuring routines, predictable interactions and secure relationships helps children feel safe and ready to learn. Here are some extra school services that seem to work. One-on-one or small-group tutoring, especially in the early grades, provide some of the strongest evidence for boosting achievement. In Mississippi, intensive early-literacy tutoring, among other reforms, helped raise fourth-grade reading scores to above the national average. CPS has made strides with its Tutor Corps program and Tutoring Chicago help, but more is needed. Before- and after-school programs, summer learning and extracurriculars boost attendance, engagement and outcomes. And pairing students with consistent adult mentors (through Big Brothers Big Sisters, for example) improves graduation rates and reduces disciplinary incidents. These add-on services boost learning — but only with a solid academic foundation; without it, they risk distraction over results. Based on the CTU contract, CPS doesn't have a choice — it has to move forward with these sustainable community schools. If CPS' own data showed these schools were moving the needle academically, this investment could be justified — but so far, that hasn't happened. We're not convinced spending more and expanding on this model is the answer Chicago kids need. Schools can connect families to outside help, but they cannot become the housing authority, the health department and the social services office without sacrificing their core mission: teaching children to read, write and think critically. When schools try to be everything to everyone, they risk doing nothing well. So the jury is out on sustainable community schools. Supporters of the concept, including the mayor, should focus on delivering results for students rather than defining success in terms of how many new CTU members are employed. Submit a letter, of no more than 400 words, to the editor here or email letters@ Solve the daily Crossword

Palantir Looks Like a Great Stock. Or Does It?
Palantir Looks Like a Great Stock. Or Does It?

Yahoo

time7 hours ago

  • Yahoo

Palantir Looks Like a Great Stock. Or Does It?

Key Points Palantir delivered record performance thanks to the rise of its commercial business. The stock is benefiting from a strong momentum. Despite the excitement, the stock trades at a rich valuation, leaving little room for error if growth slows. 10 stocks we like better than Palantir Technologies › Palantir Technologies (NASDAQ: PLTR) has been on a tear lately. The data analytics company has captured investor attention with record results, surging demand for its AI-driven platforms, and a stock price that's been on an impressive run. For many, the bullish case seems obvious: strong growth, expanding margins, and a technology stack that appears well positioned for the AI era. But as any seasoned investor knows, there's a difference between a great business and an excellent stock. Palantir may have the first part nailed -- but the second is where the story gets complicated. Let's unpack both sides of the argument. Palantir is firing on all cylinders Palantir's latest results blew past expectations. In the second quarter of 2025, revenue rose 48% year over year to $1 billion -- the highest in its history -- while adjusted operating income rose 24% to $464 million. What's driving this surge? One is that Palantir's commercial business is expanding rapidly as enterprises adopt its Artificial Intelligence Platform (AIP) for their AI transformation. For perspective, the AI company closed a record $803 million in U.S. commercial total contract value (TCV), representing a 134% year-over-year improvement in the latest quarter. But that's just part of the story. Palantir's traditional public sector business also delivered improvements, as U.S. government revenue increased 45% year over year in the same quarter. These twin engines of growth position the tech company well to sustain its momentum in the coming quarters, if not years, riding on the massive AI transformation wave. Momentum could keep the rally going Beyond fundamentals, Palantir is benefiting from a powerful momentum wave. The stock has gained more than 500% over the past year, and such rapid appreciation often attracts momentum traders and algorithmic funds. These investors aren't necessarily buying because they've done a deep dive into Palantir's financials -- they're buying because the trend is up. Momentum can be a powerful short-term force. In Palantir's case, several factors are aligning to keep investor enthusiasm high: A strong narrative around AI leadership. Expanding adoption across both commercial and government sectors. Upwardly revised guidance often keeps analysts and traders optimistic. This dynamic doesn't guarantee further gains, but it does mean that sentiment may continue to act as a tailwind in the coming month, especially if Palantir continues to deliver quarterly upside surprises. However, momentum is notoriously fickle. When it turns, the same traders who piled in can exit just as quickly, amplifying the downside. That's why long-term investors should be careful not to confuse a price surge with a permanent shift in value. The other side of the coin: valuation risk While the business story is compelling, the investment case becomes more complex when we factor in valuation. Palantir currently trades at over 132 times sales -- a premium multiple that incorporates a significant amount of future success, among other factors. History shows that even great companies can deliver mediocre returns if bought at overly optimistic valuations. Microsoft, for example, was a phenomenal business in the late 1990s -- yet investors who bought at the height of the dot-com boom had to wait more than a decade to break even, despite Microsoft's continued operational success. That's the risk here: Palantir could continue to win new contracts, expand margins, and deepen its AI moat -- yet still deliver underwhelming stock returns if today's valuation already incorporates too much optimism. Besides, paying a high premium for a stock leaves little margin for error. Just one quarter of weaker-than-expected performance can lead to a stock being rerated to a more reasonable valuation. Great for investors looking to buy, but a disaster for those who have purchased the stock at high prices. What does it mean for investors? Palantir's latest quarter showed record revenue and growing profits -- the kind of financial performance any growth investor would love to see. Furthermore, the company's AI platform is gaining traction, lending it a credible claim to being one of the most significant players in applied artificial intelligence. In the near term, momentum and investor enthusiasm could push the stock higher. But over the longer term, the most significant risk may not be the business itself -- it's the price investors are willing to pay for it today. While traders may be happy to ride the momentum, long-term investors, however, should think twice before making a bet. It will be prudent to wait for a more reasonable entry point. Should you buy stock in Palantir Technologies right now? Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Palantir Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $649,544!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,113,059!* Now, it's worth noting Stock Advisor's total average return is 1,062% — a market-crushing outperformance compared to 185% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Lawrence Nga has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft and Palantir Technologies. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Palantir Looks Like a Great Stock. Or Does It? was originally published by The Motley Fool Sign in to access your portfolio

The Tribune's Quotes of the Week quiz for Aug. 16
The Tribune's Quotes of the Week quiz for Aug. 16

Chicago Tribune

time7 hours ago

  • Chicago Tribune

The Tribune's Quotes of the Week quiz for Aug. 16

Planes whizzing around the city for the annual Chicago Air and Water Show are a sign that summer is winding down. But before the planes came dark skies and tons of rain, with several parts of the Chicagoland under flash flood and severe weather warnings. But enough about the weather — let's recap what else happened this week. Chicago Public Schools students return to the classroom Monday as school leaders continue to hammer out the district's budget. At Wednesday's school board meeting, CPS CEO Macquline King presented a balanced budget that divided members, who must pass a spending plan by the end of August. Plus, the University of Chicago announced that it will pause admissions for Ph.D. and master's programs across several schools amid mounting financial strains. The city of Chicago is facing its own budgetary problems, with the city's chief financial officer speaking Tuesday about how new state actions could help. But City Hall did score a win when the mayor and Chicago Fire Fighters Union Local 2 reached a tentative contract agreement following years of bargaining. Both Republican and Democratic state politicians headed to Springfield this week for their party's day at the Illinois State Fair. The politicos weren't there merely to catch the Snoop Dog show and take in the butter cow, but also to give stump speeches, talk nationwide redistricting efforts and gear up for the 2026 midterms. Meanwhile, the Texas House Democrats who fled to Illinois last week said Thursday that they plan to return to Austin after lawmakers adjourn their current special session and California Democrats introduce their retaliatory map designed to neutralize the Texas GOP's efforts. From the crime and public safety beat, another corrupt Illinois politician is going to serve time, the Cook County state's attorney's office declined to charge the officers who shot and killed Dexter Reed during a March 2024 traffic stop and the Chicago police officer who fatally shot Officer Krystal Rivera earlier this year was stripped of police powers after being accused of battery against another female officer. Chicago is the subject of more threats from President Donald Trump. After mobilizing National Guard troops in Washington, D.C., to help fight crime, the president suggested doing the same in the Windy City. Trump also met with Russian President Vladimir Putin at a summit in Alaska on Friday to discuss ending the war in Ukraine. It's been a little more than a week since the latest round of U.S. tariffs took effect, but it's difficult to interpret the impact they've had on the economy. While the stock market soared to historic highs this week, the latest report from the consumer price index showed the cost of some everyday goods is climbing and the Federal Reserve announced that, across the board, inflation was unchanged. Back home, the Chicago Bulls are preparing to get back out on the court, releasing their schedule for the 2025-26 season, which starts on Oct. 22, and across town, the Sky notched their 11th loss in 12 games, as injured star Angel Reese sat out for a sixth straight. Things aren't much better for Chicago area baseball fans. The Cubs are falling further back from first place in the NL Central, the White Sox are 44-78, and Clarendon Hills suffered a stinging defeat in their opening game of the Little League World Series, losing 16-1. But you know who had a good week? Swifties. The pop star announced her 12th studio album, 'The Life of a Showgirl,' late Monday and appeared on her boyfriend Travis Kelce's 'New Heights' podcast Wednesday to discuss the upcoming record. Now let's get to it. Can you guess who said what this week? Take the Tribune's Quotes of the Week quiz to find out. Missed last week? You can find it here or check out our past editions of Quotes of the Week.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store