The Chicago Public Schools board has given the green light for a substantial $175 million pension contribution to the city, marking a significant financial decision.

During a special meeting on Thursday, board members reached a consensus, voting unanimously in favor of the payment.

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This pivotal decision follows the Chicago Board of Education’s approval of a balanced budget for CPS in August, which successfully addressed a previous $730 million deficit.

A contentious debate had emerged over who should bear the responsibility for this pension payment—Chicago Public Schools or the city itself.

The pension fund, which covers both CPS and city employees, is legally mandated to be funded by the city. However, Chicago is grappling with its own budgetary challenges.

After presenting his city budget proposal earlier this month, Chicago Mayor Brandon Johnson spoke with ABC7 and defended his plan to sweep a billion dollars in Tax Increment Financing (TIF) funds, more than half of which would to Chicago Public Schools.

“A TIF surplus goes to our City Colleges; it goes to our parks, goes to our libraries,” Johnson said. “Because that’s the way the law is designed, and so investing in CPS, that’s a good thing, right? And so what I’m simply saying is that I know that there are people who are thirsty to make it about the Chicago Teachers Union. They’re short-sighted; they are short-sighted because the larger, bigger picture ensures that not just our public schools are fully supported at a time in which President Trump is attacking public education.”

This is a developing story.