Several major US school districts are approving teacher pay raises without the budget to fund them, forcing borrowing, renegotiations, and deep cuts. Philadelphia , Chicago , Baltimore County , and Fairfax County are struggling to honour contracts as enrollment declines, federal relief expires, and debt climbs, according to reporting by The 74.
Philadelphia scrambles to cover raises Philadelphia Public Schools narrowly avoided a strike in late August after approving 3% annual raises for 14,000 educators, counsellors, and paraprofessionals, according to The 74. Weeks later, the district sought permission to borrow up to $1.5 billion to cover the contract and other operating costs.
The district’s budget reflects a growing deficit projected to reach $466 million by 2027 and $774 million by 2030. Declining enrollment, which has dropped by more than 15,000 students over the last decade, and a state budget impasse are intensifying fiscal pressure, The 74 reports.
Chicago faces $734 million gap Chicago Public Schools approved a four-year, $1.5 billion contract for teachers in April despite a $734 million deficit, according to The 74. Enrollment has fallen from more than 430,000 students in 2000 to just over 316,000 in 2025.
To close the gap, the district implemented cuts and refinancing measures and conditioned pension reimbursements on extra revenue, while ensuring contractual obligations to staff are met, The 74 notes.
Baltimore County and Fairfax County adjust raisesBaltimore County initially approved annual raises for 9,000 teachers in 2023 without securing funding. When federal COVID relief funds expired and the county denied additional support, a scheduled 5% raise was rescinded. After teacher rallies and negotiations, the district implemented a 3.05% raise phased through September and January, according to The 74.
Fairfax County Public Schools ’ first union contract in nearly 50 years promised a 7% raise for 27,500 staff members. Budget shortfalls forced a reduction to 6% for 2025–26, with future increases dependent on local government funding, The 74 reports. Both districts illustrate the growing gap between promised pay and available resources.
Rising debt and national implicationsUS public school debt has risen from $415 billion in 2013 to more than $586 billion in 2023, according to the latest census data cited by The 74. Philadelphia and Chicago are among the top ten districts reporting revenues below expenses. Experts warn that declining enrollment, expiring federal relief, and state funding delays could make it increasingly difficult for districts to meet contractual obligations, threatening staffing, teacher retention, and educational quality, The 74 reports.
Philadelphia scrambles to cover raises Philadelphia Public Schools narrowly avoided a strike in late August after approving 3% annual raises for 14,000 educators, counsellors, and paraprofessionals, according to The 74. Weeks later, the district sought permission to borrow up to $1.5 billion to cover the contract and other operating costs.
The district’s budget reflects a growing deficit projected to reach $466 million by 2027 and $774 million by 2030. Declining enrollment, which has dropped by more than 15,000 students over the last decade, and a state budget impasse are intensifying fiscal pressure, The 74 reports.
Chicago faces $734 million gap Chicago Public Schools approved a four-year, $1.5 billion contract for teachers in April despite a $734 million deficit, according to The 74. Enrollment has fallen from more than 430,000 students in 2000 to just over 316,000 in 2025.
To close the gap, the district implemented cuts and refinancing measures and conditioned pension reimbursements on extra revenue, while ensuring contractual obligations to staff are met, The 74 notes.
Baltimore County and Fairfax County adjust raisesBaltimore County initially approved annual raises for 9,000 teachers in 2023 without securing funding. When federal COVID relief funds expired and the county denied additional support, a scheduled 5% raise was rescinded. After teacher rallies and negotiations, the district implemented a 3.05% raise phased through September and January, according to The 74.
Fairfax County Public Schools ’ first union contract in nearly 50 years promised a 7% raise for 27,500 staff members. Budget shortfalls forced a reduction to 6% for 2025–26, with future increases dependent on local government funding, The 74 reports. Both districts illustrate the growing gap between promised pay and available resources.
Rising debt and national implicationsUS public school debt has risen from $415 billion in 2013 to more than $586 billion in 2023, according to the latest census data cited by The 74. Philadelphia and Chicago are among the top ten districts reporting revenues below expenses. Experts warn that declining enrollment, expiring federal relief, and state funding delays could make it increasingly difficult for districts to meet contractual obligations, threatening staffing, teacher retention, and educational quality, The 74 reports.
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