Governor-appointed Board May Replace Chicago's School Board in an Effort to Resolve a $1 Billion Budget Deficit and Massive Unfunded Pension Liability
Easing pension costs was made harder after the Illinois Supreme Court last May tossed out a 2013 state law that would have saved as much as $145 billion over 30 years, ruling that public sector workers have iron-clad protection in the state constitution against cuts to retirement benefits. The high court could rule as soon as January 22nd on a union challenge to a 2014 state law to shore up two of Chicago's financially struggling pension funds. The city used a consideration argument to defend the law, claiming that pension benefit cuts and higher pension contributions will save the funds from insolvency. Union coalition We Are One Illinois contended the governor's plan was unconstitutional. [Reuters]
Rauner, GOP leaders want state takeover of Chicago schools
January 21, 2016AP - Backed by Gov. Bruce Rauner, top Illinois Republicans called Wednesday for a state takeover of the financially troubled Chicago Public Schools, which faces a nearly $1 billion budget deficit that could lead to thousands of teacher layoffs and a possible strike in a matter of months.
Radogno and House Republican Leader Jim Durkin said the legislation would give the Illinois State Board of Education control over the nation's third-largest school district. They also noted that GOP lawmakers may reveal a bankruptcy plan for CPS and the city of Chicago in the coming weeks, but didn't offer many details.
"What we're proposing is a lifeline," Radogno said of CPS, which has a massive unfunded pension liability. "We didn't come to this lightly, but the track record of Chicago and its public school system is abysmal."
The
plan calls for the state schools superintendent, who is chosen by a
governor-appointed board, to name up to seven members of an independent
authority that would essentially replace Chicago's school board, which
is chosen by the mayor. They would also negotiate teacher contracts,
though Republicans said the authority wouldn't be able to "unilaterally
cancel or modify" existing agreements.
At least a half-dozen districts in Illinois have come under state management since 2003, including East St. Louis in 2012, which was fought hard by people in the struggling St. Louis suburb.
Rauner announced his support for the takeover not long after Radogno and Durkin's news conference. But Democrats — who hold big majorities in both chambers of the Illinois Legislature, are close allies of Chicago Mayor Rahm Emanuel and are locked with Rauner on a long-overdue state budget — blasted the plan almost immediately.
"This is not going to happen," Senate President John Cullerton said, calling the idea and a distraction from the state's other problems.
The
mayor was at a conference in Washington, D.C., but his spokeswoman said
Emanuel is "100 percent opposed to Gov. Rauner's 'plan'" and accused
Republicans of "trying desperately to distract from their own failures."
"If the governor was serious about helping Chicago students, he should start by proposing — and passing — a budget that fully funds education and treats CPS students like every other child in the state," Emanuel spokeswoman Kelley Quinn said.For years, Emanuel has called for a change in state law regarding how pensions are funded. Currently, Chicago taxpayers cover the cost of city teachers' pensions, while taxpayers statewide contribute to retirement funds for teachers outside Chicago — a system Emanuel argues is unfair because Chicago residents pay twice.
But Rauner has repeatedly said he won't approve any help for Chicago until Emanuel gets behind legislative measures that the former businessman says will make Illinois more competitive. Those include allowing local governments to curb labor unions' bargaining rights and making changes to workers' compensation insurance.
Emanuel has opposed those efforts, saying they would hurt the middle class.
CPS also is in the midst of contentious negotiations with the Chicago Teachers Union on a new contract. Union members last month overwhelmingly authorized their leaders to call a strike if needed, which was an attempt to pressure the district to avoid layoffs or severe cuts. The union, which went on strike in 2012, says a walkout would still be months away.
CTU officials called the plan an example where Rauner "clumsily attempts to lead" and that the plan is a "non-starter when state government has so far been unable to assume responsibility for its own budget."
Yahoo comments:
ReplyDeletemore cuts to CPS administrative staff are needed - it's terrible what democrats and their union owners have done to the people of Chicago and the state of Illinois. I hope the union goes on strike and Rauner hires non union teachers to replace them. It'd be hysterical to see these greedy, overpaid union derelicts attacking teachers and threatening students - not that we haven't seen it before. I see these signs - Union Proud - and always wonder what these pathetic losers are proud of - fleecing taxpayers, stealing from children, holding a child's education hostage to satisfy their greed.
This article fails to mention the problems. One such one, "Facing financial crisis, CPS officials and Mayor Rahm Emanuel want teachers to pay the full share of their pension contributions. The district has long paid 7 percentage points of the 9 percent contribution required for teachers. The Chicago Teachers Union argues that such a change would mean a steep pay cut."
This never should have been agreed upon. No one today deserves a pension. Raise pay, drop pensions and replace them with a 401k with a generous 5% match, and make the school year longer. It is currently cheaper to send CPS students to Parochial Schools which actual provide a better education that some CPS schools. Throwing more money at a failing "business" isn't smart. Drastic changes are needed.
Another slow and painful death spiral of a democrat socialist/ communist and a teachers union socialist system of systemic failure. Tax and spend, union socialist control the tax payers money and one expects a different outcome other than the obvious failure it will always become. Another definition of a city of idiots
Don't forget about all the Dems votes: close to 60,000 employees, double that and that's 120,000 votes, multiply that by 4 (Parents of staff) gives you another 480,000 votes for a total of 600,000 votes, that my friend is a good chunk of votes and that doesn't count the City employees!
Lay off everyone except the teachers, principals, janitors and payroll department. Who needs the rest of the corrupt bunch?
I believe that it is cheaper to outsource payroll to ADP or Paychex. You don't have to make them a pension or any benefits.
Chicago school district and their teachers union is all about creating more union jobs and maintaining jobs with over inflated pay and cushy retirement program than it is about educating students. Has no relationship to the private sector in terms of average income or pay for performance. It is all about union jobs that will vote for the Chicago politician that favors the union and drives the city deeper in unfunded pension debt in return for the votes.Corrupt, ineffective, and a shameful reflection on teachers elsewhere that are committed to mentoring and elevating students.
The state should stay out of the Chicago school problems. The Chicago school system is a cesspool created by Democrats and public employee unions and is beyond saving. Besides, the Chicago school system is not about education. It is about buying votes with taxpayer money and laundering taxpayer money through the employee unions into Democrat party campaign coffers. Let it bleed to death.
Yahoo comments:
ReplyDeleteThe lack of any logic or reason by the unions jumps off the page. CPS is a billion $ in debt and the unions want more, how much is enough? The taxpayer can not afford to keep giving more of their money to greedy unions; a billion $ in debt and they want more has to be repeated.
Top heavy organization that everyone who has a job is politically sponsored.
Chicago resident here: I can only imagine the types of bloated, over paid, worthless administrators that will lose their jobs that were handed to them; I don't feel sorry for any of them. It's also not hard to figure out why this conundrum exists in the first place! How the heck can you pay teachers $50,000 to $70,000 a year when the median income in Chicago's private sector is less than $30,000?! Same with Chicago cops and firefighters. The money just isn't there in terms of tax revenue to be paying these public servants such extravagant salaries. Let me tell you: Cops, teachers, and firefighters would rather see the city go bankrupt before giving up one cent of their ridiculous income packages. SELFISH!
So a few cuts in the office. Go after the sweet pension deals and medical programs that have been doled out. The CPS should declare bankruptcy and re do all their pensions, medical programs and begin firing in capable teachers. The crime problem in Chicago is also endemic of the education system!!! All cronies!! Chicago is a city of Crime, Corruption and CoverUP.
Average cps " graduate" reads at a 4th grade level. What difference difference does it make ? Cps is a daycare providing cheap government meals ...
When approximately 85% of the budget goes towards salaries and benefits you will go bankrupt
Chicago, Detrpit, New York it's all the same street.. A typical liberal city involved in a typical liberal daydream. Hang it up see what tomorrow beings
I have been to the CPS administrative offices there are already hardly any staff working there- the problem lies with the Democrats plundering /stealing the money set aside for the children.