|
 Emanuel offered two solutions. One would create a uniform pension
system for all teachers in the state, replacing a separate fund for
Chicago.
The other plan would require the state to fund a bigger chunk of
Chicago teachers' pensions, while the teachers would pay an
additional 7 percent of their salary that is currently covered by
the Chicago Public Schools (CPS) - a proposal that has already been
met with hostility from the Chicago Teachers Union.
The mayor has continuously spoken out against what he calls a
funding inequity in which Illinois pays for the bulk of teacher
pensions in every school district but Chicago.
For fiscal 2015, which ended on Tuesday, the state appropriated $3.5
billion for the state-wide Teachers Retirement System and just $62.1
million for Chicago's fund, according to documents from the Chicago
Teachers' Pension Fund.
"It's time to finally fix the problem permanently," Emanuel told
reporters.
 Emanuel also said the Illinois Legislature should increase education
funding by 25 percent, and floated the possibility of a $175 million
property tax increase to create new revenue.
CPS, the nation's third-largest district, is facing another round of
spending cuts after making a $634 million state-mandated payment to
its teachers' retirement fund. Interim Chief Executive Jesse Ruiz
said the cuts, totaling $200 million, will eliminate 1,400 jobs,
cutting into athletic programs, high school class start times and
building repair and maintenance. Class sizes will not be affected.
District officials said they tapped borrowed money, including $200
million of tax anticipation notes approved last week by the Chicago
Board of Education, to make the pension payment.
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They also confirmed the school system is seeking a $500 million
break from the teachers' fund from its fiscal 2016 payment. Under
that plan, CPS would repay the money in fiscal 2017 at a 7.75
percent interest rate and make its required pension payments monthly
instead of annually beginning in January. The teachers' fund board
advanced the request to a subcommittee to continue negotiations with
CPS.
Meanwhile, a bill aimed at easing pension pressures at CPS, while
also giving Governor Bruce Rauner the local property tax freeze he
wants, cleared an Illinois Senate committee on Wednesday.
(Reporting by Mary Wisniewski, additional reporting by Fiona Ortiz
in Springfield, Illinois and Karen Pierog in Chicago)
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