Posted on 03/10/2016 6:28:50 AM PST by george76
Chcago Public Schools officials told principals on Wednesday that the district is "short of the necessary cash for the remainder of the school year" partly because of a pension payment of nearly $700 million due this summer.
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Last month, principals had to absorb $26 million in midyear budget cuts to district-operated schools. Principals tapped internal accounts, cut planned technology and textbook purchases and didn't fill vacant positions to avert layoffs.
On Wednesday, principals were told to hold off on $45 million budgeted for "non-personnel" expenses. The district said it wants to save another $10 million through a limit on new hires.
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The district started its budget year with a $480 million gap officials hoped to fill with help from the state. That money hasn't materialized, leading to the midyear cuts to school budgets and a $725 million bond issue. CPS also recently ordered three unpaid furlough days for all employees, which resulted in classes being canceled March 25.
CPS expected to save $65 million this year by eliminating the longstanding practice of paying the bulk of teachers' pension contributions. But with the teachers union threatening an April 1 strike, the district last week said it would continue the pension pickup until the end of a final phase of contract negotiations.
CPS is now in a similar spot as it was last year, when it had to scramble to make a $634 million payment to the Chicago Teachers' Pension Fund.
Pension fund officials said the district had paid slightly less than $8.9 million of its $688 million payment as of Wednesday, leaving a balance of $679 million. The district made no payments in January and February
(Excerpt) Read more at chicagotribune.com ...
They could create a “privilege” tax on parents
They already have this in place- property tax
I guess they need to figure it out.
Perhaps now is the time for smart parents to utilize that voucher and pull their child out of CPS.
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