CPS CEO Martinez claims Mayor Johnson rejected funding request amid budget dispute

CHICAGO - Chicago Public Schools (CPS) CEO Pedro Martinez claims he asked Mayor Brandon Johnson for money to fund a CPS pension payment and raises for teachers, but the mayor declined. 

The surprising revelations cast doubt on the mayor and the Chicago Teachers Union’s claims that Martinez has sought layoffs and cuts to plug a budget gap.

Martinez says he met multiple times with the mayor’s staff and the mayor himself on April 30th asked him to authorize sending Chicago Public Schools $462 million in tax increment financing surplus funds. 

Declaring a TIF surplus and plowing the money into schools is a common maneuver mayors have used to plug CPS budget gaps.

"In that April 30th meeting, we presented the risks of forcing the district to put in the budget pension payments and an expected 4 percent raise for CTU. The risk was there could be layoffs," Martinez said. "Neither myself nor the Board of Education supported that. In that presentation, we made it very clear we need that $462 million. This will avoid this."

Martinez says the mayor declined the request, instead asking him to authorize a risky short-term loan to cover those costs.

"I was disappointed that they asked me to borrow," Martinez said.

Last month, the mayor asked Martinez to resign over the disagreement on the loan. In an interview with WTTW, the mayor defended the loan as a way to transform the school district.

Martinez says he and the board were united on the budget and opposed taking the loan. Instead of yielding to pressure from the mayor's office, the entire board resigned.

This week, the mayor announced six replacements. I asked Martinez if he expected them to fire him immediately and authorize the loan.

"I've been working hand in hand with my current board on everything," Martinez said. "There's not one thing that has been done without them. I wanna make sure the new board understands that. I'm not against someone saying hey I want my own leader. I'm just asking you follow my contract and be truthful."

Martinez’s contract calls for a six-month notice of termination and five months severance payment, unless fired for cause. Martinez says he has been the subject of a misinformation campaign ginned up by supporters of CTU and the mayor to try and find cause for his firing.

"I have no doubt about it, I heard rumors about it," Martinez said. "But here's what I know. Our schools had the best opening ever this year."

CTU members have criticized Martinez for what they say is a failure to lobby Springfield for more money. 

Martinez says those claims are untrue, saying instead that Mayor Johnson did not even bring up CPS funding on his trip to Springfield. Martinez says lawmakers told him the mayor and CPS chief had to be in alignment on their requests.

"Unfortunately, this last session, I did not see that alignment," Martinez said. "You can see what the priorities were during the session. I had this conversation with the mayor."

In a Tribune op-ed today, top mayoral ally, 25th Ward Alderman Byron Sigcho-Lopez blamed Governor Pritzker for failing to deliver more state aid to CPS.