Marguerite Roza & Maggie Cicco:

Financial dysfunction is plaguing many city school districts.

Chicago is the most concerning. The district’s current $300 million budget gap is set to triple next year, which isn’t surprising since enrollment dropped 10% over six years as the district added staff. Now, it won’t close schools, won’t reduce the workforce and is being told by the mayor to give in to union demands for big raises. How would the math work? The mayor wants the district to take out a short-term, high-interest loan. Oh, and the city and district still need to work out how to make this year’s pension payment.

Seattle is a close second. Two years ago, leaders agreed to a costly labor agreement that they admitted would require major cuts. But then they didn’t make those cuts. Instead, leaders exhausted all reserves and are borrowing money they’ll have to pay back by 2026. What’s the plan for the $100 million budget deficit? None yet.

Why are financial crises suddenly common among large urban districts? Federal relief funds are part of the issue. Despite warnings that the money was temporary, many city districts used those one-time funds for salary raises and new staff hires.