CHICAGO— Chicago Public Schools began notifying more than 1,000 teachers of layoffs Friday as the district chips away at a $1 billion deficit it faces because of the end of a pension payment holiday, rising costs including a new teachers’ contract, and a reliance on one-time revenues to balance recent budgets.

CPS puts much of the blame for its deficit on the looming $400 million increase in pension payments owed in its next budget which it attributes to state inaction on pension reform. The district had enjoyed a partial payment holiday for the last three years.

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