In 2014, Chicago Public Schools (CPS) adopted a system-wide Student Based Budgeting model for determining individual school budgets. Our report examines the impact of Student Based Budgeting. Our findings show that CPS’ putatively color-blind Student Based Budgeting reproduces racial inequality by concentrating low budget public schools almost exclusively in Chicago’s Black neighborhoods. The clustering of low budget schools in low-income Black neighborhoods adds another layer of hardship in neighborhoods experiencing distress from depopulation, low incomes, and unaffordable housing.