Chicago Public Schools’ student enrollment is down almost 4% since last year, threatening to further strain the district’s already stretched budget. The district has lost more than 11,500 students based on district data released Thursday. The district attributes the decline to widespread demographic changes in both Chicago and nationally, including declining birth rates and falling public school enrollment.

“Chicago Public Schools is not alone in confronting the demographic changes reshaping enrollment in urban school districts across the country,” Macquline King, the district’s chief executive officer and superintendent, said in a statement. Enrollment declines are hitting schools across the country as the number of school-aged kids dwindles. In some regions, the decrease in students has been exacerbated by other circumstances, such as increasing competition from private or alternative schools. Housing affordability, movement out of the city and changes in national immigration policies have also contributed to Chicago’s declines, per the district.

Enrollment is a key financial metric for public schools because in many states, funding is typically based on the number of students school systems serve, although Chicago Public Schools has worked to move away from that formula. The trend, alongside rising costs, is increasing financial strain in school systems nationally, with nearly half of school districts graded by S&P Global Ratings reporting operating deficits in 2025, according to a new report.

Chicago Public Schools had been trying to close a $732.5 million deficit. Despite the district modifying positions and cutting spending at its central office, King noted there was still a gap. The district is hoping it will be filled by funds from the city and state. If that funding does not come through, “CPS may need to make mid-year reductions to keep costs under control,” said King. Earlier in September, S&P analysts lowered the Chicago Board of Education’s outlook to negative from stable, calling the assumed funding “unrealistic” and said it poses a risk of upending the district’s budget, which could pressure the rating within the next year. The district has a moratorium on school closures in place until the end of the 2026-2027 school year.