Chicago Public Schools Faces $23.6 Million Payouts for Unused Employee Leave

Chicago, IL – Illinois taxpayers are reportedly responsible for over $23.6 million in payouts for unused sick and vacation days within the Chicago Public Schools (CPS) system, according to a recent report by the Illinois Policy Institute (IPI). This figure, highlighted by journalist Dave Bondy, represents a significant financial liability for the district. As Bondy stated in a social media post, "Folks, you’re not reading that wrong. According to a report from the Illinois Policy Institute, taxpayers in Illinois are on the hook for $23.6 million that the Chicago Public Schools system spent on vacation–related costs."

The substantial sum primarily stems from a policy allowing CPS employees to cash out accumulated unused sick and vacation days upon their departure or retirement. The Illinois Policy Institute's analysis indicates that these payouts, totaling more than $23.6 million, were distributed to over 1,000 employees over a recent three-year period, approximately from fiscal years 2018 to 2020. This practice can significantly increase an employee's final average salary, potentially leading to higher pension benefits, a phenomenon the IPI refers to as "pension spiking."

The IPI, a conservative think tank known for its scrutiny of public spending, argues that these payouts represent an undue burden on taxpayers. They contend that funds allocated to such benefits could otherwise be directed towards classroom resources, teacher salaries, or other educational priorities within the financially challenged district. The report frequently positions these costs within the broader context of Illinois' ongoing fiscal difficulties and high property tax rates.

Chicago Public Schools, as one of the nation's largest school districts, manages a vast budget and workforce, making its financial practices subject to intense public and political scrutiny. While the district has not issued a specific comprehensive response directly addressing the IPI's $23.6 million figure, such payouts for accumulated leave are a common, albeit often controversial, component of public employee compensation packages established through collective bargaining agreements. The IPI continues to advocate for reforms to reduce these liabilities and enhance transparency in public sector employee benefits.