CTU threatens to sue over proposed CPS budget cuts
The Chicago Teachers Union is threatening to sue the Chicago Board of Education over budget plans proposed by outgoing schools chief Pedro Martinez that it says constitute unfair labor practices and violations of the recently ratified contract.
CTU President Stacy Davis Gates sent a letter to the school board on Tuesday, June 3, characterizing Martinez and his team's proposals to balance the Chicago Public Schools' 2026 fiscal budget as 'attempts at vindictive sabotage.'
The new fiscal year begins on July 1. The union settled a new $1.5 billion four-year contract in late April, following a year of negotiations. CPS has said there is enough money to cover the first year of the contract, but has not specified plans for the other three.
In recent weeks, CPS suggested delaying the proposals outlined in the new union contract to balance the budget for next year, given challenging financial circumstances, according to the CTU letter.
Those delayed proposals would affect agreements around class size and staffing levels, the letter states, affecting English Language Learners and students with disabilities.
'To be clear, the district does not have the option of delaying investments it is contractually obligated to make under our (collective bargaining agreement), for FY26 or any other year of the agreement,' Davis Gates writes in the letter.
Facing a $529 million budget deficit for fiscal year 2026, district officials pushed back. They indicated in a statement to the Tribune that they may need to review new proposals under various labor agreements to ensure long-term sustainability. Salary increases, they assured, are already in motion and included in the budget.
'If any changes to the collective bargaining agreement are needed, the District will work in partnership with our labor partners to identify solutions together,' the statement reads.
The proposals in the new teachers contract include increased salaries for veteran teachers, more librarians and nurses, and mandates around class sizes, among hundreds of other asks.
In the letter, Davis Gates writes that 'the terminated CEO is recommending the school district expose itself to massive legal liability by breaking these contractual promises.' She adds that the district's proposed cuts could trigger 'state investigations, monitorship, and costly compensatory services.'
Ultimately, she strongly urges board members to reject Martinez's plan.
Typically, when a dispute arises regarding the interpretation or enforcement of any of the proposals in a teachers contract, CTU initiates a grievance process that may be submitted to arbitration, where an impartial arbitrator makes a binding decision.
But if any party believes that the contract has been violated in a manner not addressable through arbitration, they may seek legal action.
Facing a $529 million budget deficit for fiscal year 2026, CPS had planned for months on how to make cuts in a way that minimizes the impact on schools. At a school board meeting last week, Martinez publicly stated that the district would attempt to make cuts at the administrative level to avoid affecting schools as much as possible.
The school district released its school-level budgets on May 15, which are based on $300 million in new revenue. That still leaves $229 million in debt, and the necessity for some cuts, CPS said in its Wednesday statement.
'The proposed reductions — totaling up to 15 percent of CPS' budgets for more than 40 departments — aim to protect school funding and critical investments in District programming and operations,' the statement reads.
Davis Gates, a close ally of Mayor Brandon Johnson, repeatedly attacked Martinez for his handling of the contract negotiations process. She nodded to that in Tuesday's letter, saying that his 'unfamiliarity with how contract negotiations work resulted in months of avoidable confusion, tension, and turmoil, delaying the settlement of our contract.'
In the letter, she says that Martinez has gone on to brag about the accomplishments of the contract. Those are the very same measures — she says — that he is seeking to cut.
Martinez is leaving the district June 18 after a long, drawn-out battle with Mayor Johnson and the union over district finances.
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The eldest of 12 children, he credits Pilsen's churches for welcoming his family to the city from Mexico. He didn't get his visa until his junior year at Benito Juarez High School in Pilsen. He said he feels 'blessed' to have attended the University of Illinois at Urbana-Champaign and to have received his MBA from DePaul University, noting that many undocumented students aren't being afforded the same opportunities because of the federal immigration crackdown. 'I feel for our community, because I understand the fear. I understand the uncertainty,' he said. Martinez worked as the chief financial officer for CPS from 2003 to 2009 under then-CEO Arne Duncan. He was a network chief before leaving to serve as superintendent of school districts in Nevada and San Antonio. He returned as CPS CEO in 2021 under then-Mayor Lori Lightfoot, just as the world was emerging from the COVID-19 pandemic. Though Martinez was born in Mexico, he said he always considered himself a Chicagoan first. 'When I came back, they started calling me the son of Chicago,' he said. 'I've gotta tell you, it's probably the best compliment I've ever received in my entire career.' A 96-page amended lawsuit, filed late Wednesday by Martinez's lawyer, William Quinlan, lays bare the CPS CEO's fight to retain his title. The conflict began in September when the mayor, a former teacher and CTU organizer, pushed for Martinez's removal after Martinez opposed a $300 million loan meant to fund a new teachers contract and a $175 million pension payment to nonteacher CPS employees. 'I really thought (the mayor and I) were aligned,' Martinez reflected Thursday. 'He knew my financial background. He even told me, 'Pedro, you have credibility.'' Martinez said he was caught off guard when Johnson asked him to step down at the September meeting due to his opposition to the loan, which he believed relied on short-term fixes for long-term financial needs. 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Among the examples: a graphic depicting him as 'the Grinch,' a CTU statement accusing him of putting 'personal politics' and 'media stardom' ahead of students, and a comment from Davis Gates comparing him to a disruptive student who should have an individualized education program — a remark that she later apologized for. In a statement, Steve Mandell, representing CTU in the lawsuit, called the complaint a 'brazen attempt to silence legitimate public advocacy' and stated that Davis Gates and CTU were advocating for change to improve the lives of students and teachers. 'If this sort of advocacy were actionable, the courts would literally be flooded with baseless defamation claims arising out of everyday labor disputes,' said the statement from Mandell, who also is on retainer to represent the Chicago Tribune in some legal matters. On Thursday, Martinez denounced Davis Gates' leadership style. He said it's important for parents to have CPS leadership they can trust, because 'we are the ones that are educating their children.' 'We're seeing this across the country … individuals who are now in power just want what they want,' he said. 'You will never see me bashing people, lying and insulting people.' Martinez claims in the suit that the union falsely blamed him for proposing mass school closures, including the shutdown of seven of 15 Acero charter schools in October — a decision he says he had no role in. He also alleges that board President Harden publicly criticized his budget plans for the coming year and stated that his departure from CPS should be accelerated. Martinez is seeking damages and a court order to enforce the terms of his contract. At a board meeting on Wednesday, the board voted to raise the payment cap for its law firm, Cozen O'Connor, from $75,000 to $135,000. The firm, along with Davis Gates and Harden, did not respond to requests for comment. This summer, the district again faces challenging budget circumstances, but under considerably different leadership dynamics. At Wednesday's board meeting, members appointed Macquline King as the new interim CPS chief. King comes from a post as the city's senior director of educational policy, so in theory, she is aligned with the mayor's priorities. She may clash with him less than Martinez did. The search for a permanent replacement is ongoing, and the district aims to pick a candidate later this fall. Before King's appointment, the Chicago Westside Branch of the National Association for the Advancement of Colored People sent a letter to Harden, requesting that board members 'hire a Black person who is a qualified Educator' for both the interim and permanent roles. The Tribune obtained a copy of the letter. Last week, the City Council's Latino Caucus sent a letter to Johnson requesting the appointment of a 'qualified Latino leader to serve as interim CEO.' The caucus's letter cites data that schools are 47% Latino, but states that 'our communities remain underrepresented in key leadership roles across City government and its sister agencies.' Asked about the optics of the two groups fighting each other through open letters to city leadership, Martinez pointed out that both Black and Latino students have seen significant improvements in literacy rates under his tenure. 'We're seeing so many of our students doing so much better,' he said. Thursday morning, he teared up as he talked about what this job has meant to him. 'I am a product of this system and all of the complexities,' he said.
