When Chicago Schools Chief Pedro Martinez took the bold step last week of rejecting Mayor Brandon Johnson’s request that he resign, Martinez did it knowing his contract would make it difficult to quickly oust him.
Sources tell WBEZ and the Sun-Times that Martinez is waiting for the Board of Education to decide his fate and that he is holding out hope the members will save him. In statements and in a Chicago Tribune op-ed, he says the school district needs the stability he brings.
In some ways, it is a risky move: The board members are appointed by the mayor, have historically done the mayor’s bidding and Martinez knows that behind closed doors his relationship with the board has been strained. In January, a new board comes in. It will become partially elected, but the mayor will continue appointing the majority of members.
This summer, the board appeared to side with Martinez on a key conflict with the mayor over whether the school district should take a loan to address a budget deficit. But information obtained by WBEZ and the Sun-Times shows that for nearly a year, board members have had some concerns about Martinez’s performance, particularly around the way he interacted with the board.
A December 2023 board assessment of Martinez’s performance reveals members were frustrated with how he communicated with the board and the pace with which he was pursuing their hallmark project — a five-year strategic plan board members hope will shape the district.
The performance assessment details specific situations where they felt blindsided or were left unprepared. In one case, according to the assessment, they described it as “disrespectful” that Martinez gave them a presentation just a day before it was released.
It is unclear whether these concerns persisted, but the strategic plan was not released until September after the board promised it would come out in the summer.
Board members have not publicly commented on whether Martinez should stay on as CEO and released a statement Tuesday night saying they were “dismayed to learn that a confidential memo regarding routine performance matters has been shared with the public.”
“The Board and CEO Martinez have worked collaboratively throughout our tenure to have open-dialogue, fostering a respectful, and professional relationship as we worked toward our shared vision,” according to the statement.
The statement went on to say that the board and school district are excited to implement the strategic plan, though it did not specify that it will be working with Martinez on that endeavor.
Despite the statement, a source inside the mayor’s office last week said Martinez has “lost the board.”
Martinez received a 3% raise — more than $10,000 — earlier this year, based on an prior evaluation, bringing his annual salary to $360,706.
Two important changes to Martinez’s contract
Board members are unpaid volunteers, and Johnson selected political novices, mostly all of whom are former activists. Now, they’re facing a legal and political quagmire.
That’s because just months before former Mayor Lori Lightfoot lost her re-election campaign in 2023, the school board amended Martinez’s contract in two key ways. The first change expanded the definition of firing “for cause” to “include any other conduct inconsistent with the CEO’s duties and obligations to CPS or the Board, or that may be reasonably perceived to have a material adverse impact on the good name and integrity of CPS or the Board in the sole judgment of the Board.”
One labor attorney, who spoke on the condition of anonymity because he is involved in negotiations with the city, said this language seems to give the board leverage, especially if they can prove they were unhappy with his performance.
If Martinez is terminated for cause, he gets no severance, but board members might be worried about being sued. A decade ago, Martinez sued a school board in Nevada that attempted to fire him. They settled for $700,000, according to the Reno Gazette Journal, and board members were issued fines by state officials in the heated public dispute.
The amended contract, however, also included a second provision that seems to give Martinez an upper hand. If he is terminated without cause, the contract requires that he can stay on for six months, “during which the CEO will remain as CEO.” He also gets five months severance pay.
Robert Bruno, a professor of labor relations for the University of Illinois Chicago, said it is not surprising or unusual for a school leader being let go without cause to want a transition period.
“It gives a board time to do a proper search and ensure for a smooth transition,” he said, but notes that 180 days notification might be a little longer than standard.
But keeping Martinez at the helm for six months could cause significant issues. Chicago Teachers Union leaders have said they do not think they can land the teachers’ contract with Martinez in place.
CTU President Stacy Davis Gates on Tuesday night said the CEO doesn’t come to the table to negotiate a contract. Usually, it is district officials, but they have always done the bidding of the mayor. The district has offered CTU members a raise of 4% this year and between 4% and 5% for the next three years, which the union acknowledges is a strong opening offer. The union also has several other demands for staffing, like more arts and sports instructors.
The problem, though, is that all this costs money, which the district does not have. The mayor wants the school district to take a short term loan, in part to pay for the teachers contract. Martinez has resisted because he thinks it is fiscally irresponsible.
But he has yet to say how he plans to pay for the teachers contract. The union says he is planning cuts — a move that is reprehensible to them.
Davis Gates said Martinez’s opposition is hypocritical, noting that the district has long taken out loans to deal with deficits, including when he was the school district CFO from 2003-2009.
“Before he was the CEO, he was the CFO,” she said. “You know those loans he talks about, ask him about all the ones that got the district into the financial trouble that we are experiencing in this moment.”
The union says there are other issues. The CTU House of Delegates took last week a unanimous no-confidence vote against Martinez. Delegates to the union’s governing body argue that Martinez has failed to provide appropriate support for the influx of migrant students and for some high schools with dwindling populations.
In addition, the core issue of the disagreement between Martinez and the mayor — unresolved fiscal issues — may only become heightened if Martinez stays on. In addition to the short-term loan the mayor’s office wants CPS to take out to pay for costs associated with the teachers contract, it also wants the school district to help the city pay into a pension fund that includes many CPS non-teacher staff. Martinez and the school board so far have refused.
If that continues, Martinez has not publicly outlined how he plans to pay for the teachers contract, or deal with a projected $700 million deficit next year. The CTU charges that Martinez will lay off thousands of staff or mandate furloughs, both of which are non-starters for the mayor and the CTU.
This type of acrimony may also turn off the governor and state lawmakers, who will be the target of lobbying for the extra state revenue that everyone hopes to get from Springfield.
Sarah Karp covers education for WBEZ. Follow her on X @WBEZeducation and @sskedreporter.