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Chicago Public Schools reported a budget gap of $500 million
this year, and Mayor Brandon Johnson did not rule out a
high-interest loan to cover it.
Truth in Accounting Founder and CEO Sheila Weinberg told The
Center Square that the city needs to make cuts or add revenue,
and she does not consider a loan as revenue.
“You know, it’s not financially prudent to borrow money to pay
for your current expenses, but evidently, that’s how they roll
in Chicago,” Weinberg said.
Johnson has said that the state of Illinois owes CPS a billion
dollars.
Weinberg said that last year alone, the state spent $300 million
of taxpayers money on the Chicago teachers retirement plan and
another $261 million for the CPS workers who are not part of the
teachers union.
“Should the state kick in any more? I think people around the
state would really question that,” Weinberg said.
CPS does not have a contract with the Chicago Teachers Union for
the upcoming school year. The previous agreement expired on June
30.
CPS and CTU have been talking for months. The next public
negotiating session is scheduled for Aug. 13. The first
scheduled day of school for students is Aug. 26.
Johnson refused to close CPS’ reported $500-million budget gap
with spending cuts.
Weinberg said the city and the school district seem to be on a
financial death spiral.
“Looking at their financial report, the budget is pretty much a
political document. If you really want to know the finances of
CPS, you have to look at their financial statement. And it shows
that they’re $17.4 billion in the hole,” Weinberg said.
According to the Illinois Policy Institute, the Chicago Teachers
Union is asking for pay raises of at least 9% each year through
fiscal year 2028. IPI said the salary hikes and CTU’s additional
contract demands could cost taxpayers $51.5 billion or more.
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