CPS sells $725M in bonds at extraordinarily high interest rate

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CHICAGO -- The Chicago School Board's financial troubles are forcing the school system to pay extraordinary borrowing costs.

CPS just sold $725 million in bonds Wednesday, at an 8.5% interest rate; that's 141 times the rate paid on a typical bank savings account.

Chicago taxpayers will ultimately pay that cost.

Governor Bruce Rauner called the bond sale a mistake; he ordered state education officials to pursue a takeover of Chicago schools.

As a form of protest, the Chicago Teachers Union pulled its money out of Bank of America -- blaming the bank’s bad investments for the financial crisis.

CTU members and supporters are planning a march later today from the Bank of America on Lasalle to City Hall.

According to a new poll out Thursday, most Chicagoans do not trust Mayor Emanuel to fix the Chicago Public School system

The Chicago Tribune poll conducted last month included nearly a thousand voters who were asked who they trust to improve CPS.

An overwhelming 60 percent expressed support for the teachers union and just 20 percent trust Mayor Emanuel. Twelve percent support neither side and the rest didn't have an opinion.

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