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Chicago Public Schools borrow $275 million at sky-high interest rate
Sun-Times ^ | 06/19/2017 | Lauren FitzPatrick and Fran Spielman

Posted on 06/20/2017 7:22:43 AM PDT by george76

The Chicago Public Schools will pay 6.39 percent — an extraordinary interest rate by short-term lending standards — to borrow $275 million it needs to make a mandatory payment for retiree pensions before a June 30 deadline.

That’s more than four times the interest rate a typical government would pay on the same borrowing deal

...

It’s yet another sign of the dire financial condition of the nation’s third-largest public school system, which for months has had a “junk” credit rating from Wall Street financial institutions.

CPS officials secured the $275 million on Monday from J.P. Morgan. It’s the final chunk of cash needed to make the $721 million payment for teacher pensions that’s due at the end of the month

...

An additional $112 million that’s needed to fund district operations will be borrowed separately.

(Excerpt) Read more at chicago.suntimes.com ...


TOPICS: Crime/Corruption; Culture/Society; Extended News; Government; News/Current Events; Politics/Elections; US: Illinois; US: Michigan
KEYWORDS: chicago; chicagodebt; chicagoschools; cps; pensions; publicschools; retireepensions; schools; teacher; teacherpensions
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To: Leaning Right
It is a (legal) abuse of a loophole in the system.

Yup,I understand how it works.The point I was making....which I'm sure you caught...is that Massachusetts pols,just about the filthiest Rats in the country,knew when these agreements were reached that that would be what happened but didn't care.

After all,those thousands and thousands of union pigs vote 100% Rat and their unions give generously to Rats.

Of course Massachusetts isn't the only place where greedy Marxist unions and filthy,power hungry Rats have formed an alliance.Chicago seems to be on the brink of bankruptcy thanks to such an alliance.

41 posted on 06/20/2017 8:15:38 AM PDT by Gay State Conservative (Comey = The Swamp Fighting Back)
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To: Gay State Conservative

Oops. I made an error in my #33 post to you. I forgot the word average. The sample retirement formula should read:

0.02 x years of service x average of three highest years’ salary


42 posted on 06/20/2017 8:16:20 AM PDT by Leaning Right (I have already previewed or do not wish to preview this composition.)
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To: george76

Chicago Public Schools borrow $275 million at sky-high interest rate


43 posted on 06/20/2017 8:17:21 AM PDT by COBOL2Java (RuPaul and Yertle - our illustrious Republican leaders up the Hill - God help us!)
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To: EC Washington

My sister taught out here in California she gets 80 percent of her last salary she and her co horts moved her up to some silly postion that bumped her pay before she retired I use to talk to her about her saving money for retirement she just laughed and said i got a pension


44 posted on 06/20/2017 8:18:51 AM PDT by al baby (May the Forceps be with you Hi Mom Its a Joke friends)
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To: fungoking

Yeah, next they’ll get title loans on all the city cars.


45 posted on 06/20/2017 8:23:03 AM PDT by GnuThere
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To: The Louiswu

How are they going to pay back the loan?

...

Capital One has no interest for 12 months on all balance transfers.


46 posted on 06/20/2017 8:23:18 AM PDT by Moonman62 (Make America Great Again!)
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To: The Louiswu

“How are they going to pay back the loan?”

All those children have two kidneys. Half of them have two testicles. they only need one of each. All of them have a disposable liver lobe they don’t need. The important thing, the most important thing, is to keep the teacher’s salaries and benefits at their present level, plus some room for growth.


47 posted on 06/20/2017 8:25:43 AM PDT by Gen.Blather
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To: george76

As long as the teacher’s union gets paid, that’s all that counts.


48 posted on 06/20/2017 8:27:44 AM PDT by Rusty0604
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To: vikingd00d

They can default on the bank loan, but not on the pension payments.


49 posted on 06/20/2017 8:30:23 AM PDT by Rusty0604
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To: Gay State Conservative

There’s a site that lists all the CA retirees pensions, lots in the over 100K club.


50 posted on 06/20/2017 8:32:41 AM PDT by Rusty0604
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To: george76

Would YOU lend to ANY Chicago entity?

REALLY??


51 posted on 06/20/2017 8:49:35 AM PDT by Flintlock (The ballot box STOLEN, our soapbox taken away--the BULLET BOX is left to us.)
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To: Rusty0604
There’s a site that lists all the CA retirees pensions, lots in the over 100K club.

Not surprised.Spending time on that site must be fun.Some time ago I stumbled upon a similar site for Massachusetts.I can't find it now...assuming it still exists.

My favorite Massachusetts pension story involves a guy named William "Billy" Bulger.He's a Rat who was once very powerful in thestate legislature.He's also the brother of one James "Whitey" Bulger...formerly the FBI's Most Wanted criminal...serial killer,drug dealer,subject of a very good film called "Black Mass".

Billy was once called to testify before a House Committee (US House).He took the 5th several dozen times.

He gets a Massachusetts pension of about $250K/yr.

52 posted on 06/20/2017 8:55:38 AM PDT by Gay State Conservative (Comey = The Swamp Fighting Back)
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To: george76

Who the hell are the idiots that lend to Chicago ?


53 posted on 06/20/2017 9:00:53 AM PDT by Lee25
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To: cyclotic

Putting the Bluesmobile police car back together is going to need some lead time.


54 posted on 06/20/2017 9:08:41 AM PDT by wally_bert (I didn't get where I am today by selling ice cream tasting of bookends, pumice stone & West Germany)
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To: tflabo
What a goat cluster copulation of a state.

You sir(or madam) insult goat copulation (at least goat copulation makes baby goats)! Unless you are implying that Illinois state legislators are copulating with goats which might actually be the case however I think they are mostly pre-convicted pedophiles.

Their day is coming soon!

55 posted on 06/20/2017 9:12:09 AM PDT by infool7 (The ugly Truth is just a big lie.)
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To: Leaning Right

“So that part of the constitution will simply have to be changed. Some retired folks have an annual school pension of $20,000. Leave them alone. But other people are pulling in large, obscenely large, amounts. They’ve got to take a haircut.”

Unfortunately, that’s not what happened in Detroit. And don’t forget, some of these people don’t participate in Social Security. As usual the little people will certainly get screwed.


56 posted on 06/20/2017 9:29:12 AM PDT by The Antiyuppie ("When small men cast long shadows, then it is very late in the day")
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To: Gay State Conservative

Interesting.


57 posted on 06/20/2017 9:30:18 AM PDT by Rusty0604
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To: al baby

“My sister taught out here in California she gets 80 percent of her last salary she and her co horts moved her up to some silly postion that bumped her pay before she retired”

This is a very common tactic, the last few years of government employment are mostly ceremonial and involve surfing the Internet, “fact finding” trips and conferences.


58 posted on 06/20/2017 9:32:45 AM PDT by The Antiyuppie ("When small men cast long shadows, then it is very late in the day")
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To: al baby

In Illinois they have a best 3 out of the last 5 years formula - so my friends would become the Assistant Freshmen Golf Coach, or Director of the Drama club. This would boost their best 3 and increase their pension. It is a game most taxpayers are unaware of.


59 posted on 06/20/2017 10:08:38 AM PDT by EC Washington
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To: Flick Lives

>>J.P. Morgan is imprudent to loan this money...<

I doubt it. It would be interesting to learn the terms of the loan. It’s almost certainly a loan secured by something, whether school property or, more likely, a prior claim on some sort of revenue such as yet-to-be-collected property taxes.

But if you’re an individual who invests in municipal bonds, don’t let the fact that J.P. Morgan bought some influence your decision. Anything you buy now is very likely to end up in the toilet. Illinois is over the edge, the canary in the coal mine for the rest of the blue states. The big question is whether the U.S. government is a blue state. It just might be.


60 posted on 06/20/2017 10:25:30 AM PDT by Norseman (Defund the Left....completely!)
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