Chicago Public Schools days away from going broke

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CHICAGO -- The Chicago Public School system is staring at a large pile of bills that are about to be due.

The Chicago Tribune reports the school system would have to use all its cash and max out its credit cards in order to pay the Teachers' Pension Fund, make payroll, and cover other costs.

If CPS does that, it could still be short on the bills due at the end of June.

So the next budget, that starts in July, would start in the red.

That could mean teacher layoffs, larger class sizes, and schools could be opened late.

The district is behind because its been putting off paying some of these expenses for years.

Instead its come up short on budgets, tapped into its rainy day fund, and put off contributing to the pension fund.

Officials from City Hall, CPS, and the teachers' union have been meeting on the finances, but no answers have surfaced.

"If you look at the so-called solutions, the only solution that's to my mind fully in control of the school board are cutting solutions, and they're not pleasant," said Henry Bienen, president emeritus of Northwestern University. "Nobody's wanted to do them, for very good reasons — because nobody's wanted to damage the enterprise of teaching students."

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14 comments

  • geo

    The way I understand it The problem is somone years ago promised people that if they worked 20 years, and and lets say they were making $50,000 a year, they could retire and collect $40,000.00 a year for the next 50 years or until they died. There are millions of people that never got that deal and are working for $20,000 a year and less until they are 65 years old, or the job
    kills them, and they are the ones who are paying there hard earned money paying taxs that are being used to pay the pensions

    • Nancy Brennan

      No, the problem is the teachers paid into a system, and the politicians took the money and used it for something else. Now, many teachers are retiring and expect to receive what was agreed to. Keep in mind, many teachers (including myself) won’t get Social Security even though I paid into it because I can’t collect both. So if a teacher paid into Social Security, that money is gone!! If someone takes your money without your permission, I think its called THEFT. Remind me again what a great deal this is!!

  • John McCroy

    The reality is if you live in Chicago you need to deal with this corruption. It’s not going anywhere!!! Rahm will make sure of that.

  • Observer

    I make good money, and pay lots of taxes. but do not live in Chicago (or Cook County). I live in a collar county.

    Personally I want to move as far from Chicago (and Cook County, and ILLINOIS) as possible. All the politicians MILK this state for their aggrandizement; they could care less for the ordinary citizen; and I do not wish to pay into this thievery and foolishness any longer.

  • Realist

    Awww poor teachers….let’s strike……..you caused this yourselves…..greedy and over paid. You work less and less and get paid more and more and demand more and most of the test scores and idiots at the mall reflect your hard unearned money.