Posted on 08/22/2016 4:04:21 PM PDT by upchuck
CHICAGO The cash-strapped Chicago public school system will rely on a $1.55 billion line of credit in fiscal 2017 to boost cash flow, up from $1.065 billion in fiscal 2016, according to a briefing document released by the district on Monday.
The bigger credit line will be on the agenda for the Chicago Board of Education's Wednesday meeting, along with a $5.4 billion operating budget, a $250 million property tax hike earmarked for teacher pensions and authorization to issue up to $945 million of general obligation bonds for capital projects.
The nation's third-largest public school district said it needs access to $485 million more in short-term funding as it ends the practice of restructuring outstanding bonds to push off debt payments and because its receipt of property taxes will be a few weeks later next year.
Chicago Public Schools (CPS) said it was working to finalize deals with lenders. Interest costs for the credit lines are budgeted at $34 million in fiscal 2017. The district tapped a bank line of credit in June to complete a $676 million fiscal 2016 contribution to its teachers' pension fund.
(Excerpt) Read more at reuters.com ...
After what happened with GM bond holders and the Illinois state constitution, any bond holder should know that his place in the repayment line is subject to change. And his repayment is always subservient to the teachers union getting their full pensions. It’s the law in Illinois. No matter what deal they cut. The Union can always override it.
So I am not sure why this is debt is not junk right off the bat.
LOL!!! snort... 100%
Think big...go for 2 Billion!
chiraq is floater in the bowl......
taxpaying suckers
Precisely!!
to RATS, other peoples money is always a gift
I do know that the powers that be in the CPS want another progressive property tax hike. Status quo, no reforming this albatross.
The people at the top are typically former teachers, principles and political hacks.They do not understand financial management. It’s corrupt business
as usual.
Raising taxes again will do nothing to alleviate the enormous pension debt.
Bruce Rauner R Governor suggested pension overhaul. bankruptcy as possibilities but Rahm said no.
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