CHICAGO (AP) — The grueling teachers strike is over. Now comes the hard part for Chicago Mayor Rahm Emanuel.

As he pushes ahead on his promise to reform the city’s underperforming classrooms, he faces several daunting tasks: slashing an estimated $1 billion budget deficit, confronting a woefully underfunded employee pension system and finding money for the pay raises that settled the first teacher walkout in a generation. He hasn’t ruled out school closings and tax increases, both of which would be hugely unpopular.