Capital

The FY2025 budget for Chicago Public Schools (CPS) includes a capital budget totaling $611.1 million of investments that will focus on priority facilities needs at neighborhood schools, mechanical systems that control the indoor environment and air quality of our schools, building envelope improvements for roofing systems, ADA accessibility, restroom modernizations, student recreation and athletic improvements, site improvements, and continued expansion of technology upgrades and other academic priorities. The budget also includes investments for enhancements to Career and Technical Education (CTE) and science, technology, engineering, arts, and mathematics (STEAM) programming. To support schools throughout the city, the FY2025 capital plan provides funding in five main areas: critical facility needs, interior improvements, programmatic investments, site improvements, and IT and security upgrades.

CPS is committed to promoting equitable access to high-quality school environments, and equity served as the foundation for the FY2025 capital plan. The District's Equity Office played an important role in developing the FY2025 capital proposal by helping to ensure that resources are distributed fairly and equitably across CPS schools so that all students can share in the District's record-setting progress. In addition, the FY2025 capital budget planning process included several enhancements, most notably around transparency and community outreach.

The release of the Educational Facilities Master Plan (EFMP) and 16 community roundtable sessions gathered valuable input. The EFMP acts as a guiding compass, informing investment decisions and school actions to align physical infrastructure with educational goals and community needs. Community feedback requested more transparency in the prioritization process for Capital projects. In April, Chicago Public Schools (CPS) held five virtual meetings to involve communities in discussing capital priorities for the FY25 Capital Plan. These sessions, led by the CPS Capital Department, Office of Equity, and Office of Family and Community Engagement (FACE), offered insights into the capital planning process and helped prioritize critical needs. We received over 1,400 survey responses during the capital plan development process. The high number of critical facility needs identified by the EFMP is reflected in the proposed Capital budget, which allocates funds across various categories.

The CPS facility portfolio includes 522 campuses and 803 buildings. Our average facility age is over 84 years old, and the total CPS immediate critical facility need is over $3 billion. Since FY2016, CPS has invested over $3 billion into capital improvements across the District. These projects include major renovations to ensure our schools stay warm and dry, facility construction to relieve overcrowding, security cameras to provide a safer environment for our children, and renovations to aid programmatic enhancements, among others. Additionally, CPS is continuing to invest in ADA upgrades to ensure all CPS campuses are more accessible.

We have several buildings that are underutilized and a few overcrowded buildings. Based on public feedback, space efficiency is a new proposed budget category that will develop deep dives into the buildings’ portfolio to (a) Determine if there are sections of a building that can be closed off to reduce operational costs, (b) Determine if there are obsolete buildings that should be demolished or replaced, and (c) Determine if there are campuses that are overcrowded with no other solutions other than a capital investment to relieve the overcrowding. Public feedback to the EFMP acknowledged the underutilized and overcrowded buildings, and this will be a new proposed budget category that will start a detailed analysis to address these challenges as part of a long-term plan.

A new enhancement based on public feedback is the need to evaluate the overall building quality. The public feedback indicated the need to consider factors beyond just the critical facility conditions to prioritize capital projects – factors contributing to an overall student learning experience. Accordingly, Capital has developed a Building Quality Index (BQI) metric that takes into consideration the following four factors – Facility condition (35%), Space adequacy (30%), Age, recent investments, and ability to modernize (20%), and ADA (15%). The BQI for Elementary Schools and High Schools is in 4 tiers – campuses with BQI tier 1 have the highest overall score. Public feedback this year confirmed the need to consider these additional factors to determine capital project prioritization given the funding constraints.

CPS will continue incorporating sustainable materials into the Capital projects since CPS specifications have been modified to include these materials (examples include energy-efficient mechanical equipment, roofs with higher R-value, low volatile organic compounds content paint, etc.). From a more holistic standpoint, CPS will continue to develop the BQI referenced above with the goal of providing buildings that can give students a well-rounded learning experience. We are also seeking public feedback about innovative ways for CPS to share our buildings to support the community.

The FY2025 capital budget is primarily funded by future issuance of general obligation bonds, which are principally repaid by Evidence-Based Funding (EBF). (For more information, please see the Debt Management chapter of the budget book.) A portion of the FY2025 budget is also funded by Tax Increment Financing (TIF) funds, state funding, and other outside resources as they become identified.

Full details on the FY2025 capital budget are available on the interactive capital plan website: www.cps.edu/capitalplanbi. The site allows users to quickly select projects by school, geographic area, type, and year.

CPS’ capital plan aligns with the priorities outlined in the Educational Facilities Master Plan. Future projects will be determined by equity, assessed need, educational priorities, and available funding with the goal of maximizing the number of students impacted by the capital investments.

Sources and Uses

Below is a summary of the sources and uses of the $611.1 million FY2025 capital budget by funding and project type:

District Equity Index to Prioritize Investments

In recent years, the District has focused on prioritizing investments that promote equitable access to high-quality learning environments. To advance this work, the District will continue to utilize the Equity Index, a tool to help identify opportunity differences so that resources can be prioritized for the schools in greatest need. Public feedback from the Capital engagement surveys confirmed overall alignment with the equity index factors and weights. The equity index was also central to developing this year’s capital plan.

Outside Funding

CPS has a significant backlog of deferred critical facility needs, so additional funding is always being pursued to help mitigate some of this backlog. One of these outside funding sources is the Tax Increment Financing (TIF) funds, which are approved in a variety of categories.

Utilizing the $61.5 million in outside funding, CPS is planning significant capital facility upgrades, programmatic upgrades, and site improvements at 26 campuses, in addition to the ITS upgrades at several campuses.

Priority Facility Needs

Every student deserves to access a neighborhood school that is warm, safe, and dry, and - in addition to the $61.5 million in outside funding - CPS is allocating $386.9 million in funding for critical maintenance projects and interior improvements. As part of our commitment to equity, the District is prioritizing renovations throughout the city to ensure all students can learn and grow in school buildings that support high-quality learning environments.

The FY2025 capital budget addresses the District’s priority renovation projects and most urgent facility needs. We will invest in 15 major roof and envelope projects and nine renovations to mechanical systems. Along with these projects, the funding will provide:

• $119.1 million for priority roof, envelope, and mechanical projects;
• $80 million for unanticipated emergency repairs;
• $14.1 million for modular refurbishment;
• $5 million for masonry remediation;
• $83 million for interior improvements;
• $30.7 million for fire alarm system replacement; 
• $5 million for chimney stabilization; and
• $7.9 million for mechanical, electrical, and plumbing (MEP) minor repair/replacement.

Support for Students with Physical Limitations

We will invest $25 million to increase Americans with Disabilities Act accessibility in 18 schools as part of a multi-year program to ensure all CPS buildings have first-floor accessibility. Starting with the FY2021 Capital budget, CPS committed to spending $100 million over five years to improve the accessibility of parking lots, main entrances, main offices, and public restrooms.

Programmatic Investments to Build Upon School Success

CPS is investing $57 million in programmatic investments, including CTE upgrades, Office for Students with Disabilities improvements, Library renovations, and student recreation and athletic resources. This investment continues the District’s stadium and swimming pool refurbishment program.

Site Improvements that Foster Learning

This year’s capital budget includes $16.7 million to design and build new playgrounds, playlots, and schoolyards across the city so that students can benefit from a well-rounded education that promotes healthy and active development. The budget will also eliminate the last of the rubber mat tiles, which are an accessibility issue. In addition, $10 million will be allocated to improve parking lots and replace turf fields.

IT, Security, Facility, and Building System Investments

In FY2025, we are also continuing our multi-year investment in the Technology Modernization Program and high-speed internet for schools throughout the city. In FY2025, the District is allocating $50.5 million to upgrade school network infrastructure to address equitable connectivity, replace aging hardware at schools, and upgrade our data warehouse and data backups.

Finally, to support cleanliness at every school, $5.5 million will be used to fund the insourcing of custodial equipment to serve the students better.

Impact of FY2025 Capital Projects on Operating Budget

All projects considered for inclusion in the annual capital budget are analyzed for their projected impact on the District’s operating budget. Below, we describe the capital project categories and their potential impact.

Facility Needs

Addressing facility needs helps the District reduce costs associated with frequent repairs to aging roofs, windows, and boiler systems, which are often funded through our general operating budget. This, in turn, frees up operating dollars that can be reallocated for instruction, support, and other District expenses. In addition, by replacing roofs and mechanical systems with more energy-efficient solutions, we may be able to reduce our energy consumption and other utility costs.

Educational Programming, Interior Renovations, and Site Improvements

Investments in educational programming that convert or improve existing space (e.g., new science labs, converted classrooms, upgrades for STEM) will have no appreciable impact on the operating budget because the District already accounts for the cost of maintaining these spaces. Investments in classroom technology will add operating expenses related to support and maintenance of the software and devices.

Investments that require new construction, build-outs, or add physical space to an existing building, such as a science lab or a new turf field, will add operating expenses for utilities, custodial services, engineering, and security.

ITS, Critical School Facility/Security Equipment (Equipment)

Infrastructure, hardware, or software implementation projects will not trigger any additional operating costs in the short term. Ongoing support for software-based projects will be absorbed by currently available staff. Internet connectivity infrastructure projects and new security equipment will potentially add additional costs to the operating budget for maintenance and repair as time goes on; however, we expect these costs to be limited as we fit the new equipment into our current maintenance and repair allocations. In addition, this category includes funds for the insourcing of custodial equipment.

Capital Project Support Services

This allocation of funds helps to support the management of the capital budget which includes facility condition assessments, capital planning, estimating, managing project and construction timelines, managing the capital budget, and ensuring the effective design, implementation, and construction of various capital projects. These services are necessary to manage a complex capital program, conduct cost estimations, meet financial and management objectives, and plan for the next phase of the District’s capital plan.

Capital Projects Fund Activity

The Summary of Capital Projects Funds table (Table 2) shows capital revenues and capital outlays (expenses) to be incurred in FY2025, regardless of the year the project was appropriated. The Fund Balance (unspent revenues received in prior years) accounts for the difference in expected capital outlays versus revenues received. For example, if the District raised $400 million in bond proceeds during a fiscal year but only expensed $300 million in the same time period, the remaining $100 million would carry forward in the Fund Balance for use during the following fiscal year.

Five-Year Capital Plan

CPS’ five-year capital plan will include further investments in deferred maintenance, targeted site improvements, and emergency projects. Future projects will be determined by assessed need, district educational priorities, and an equitable distribution of available funding. CPS intends to target annual capital funding of approximately $550 million as part of its five-year capital investment strategy.

1. The Board currently expects that the proceeds of bonds will be applied to reimburse itself within 18 months after the later of (a) the date the original expenditure is paid or (b) the date the project is placed in service, but in no event more than three years after the original expenditure is paid.