CHICAGO - Chicago school officials are in a time crunch to find cash the district doesn't have.
CPS owes the Chicago Teachers' Pension Fund more than $600 million by June 30.
In order to pay that bill and other costs, the district would likely have to max out its credit, drain its checking account and use money set aside to pay other debts.
A consulting firm is recommending the City of Chicago enact a capital improvement tax to help CPS collect an estimated $50 million more in property taxes each year. This tax is above the limited annual increases CPS can already make.
The school district also faces a potential $228 million bill for costs related to interest rate swap contracts. It currently only has $174 million set aside to cover those costs.
Last month, Moody's Investors Service downgraded the school district's creditworthiness to junk status.
The budget issues mean CPS may have to layoff teachers and increase class sizes.
The Chicago Tribune contributed to this report.