SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
To subscribe to Capitol Fax, click here.
14 months of revenue for a 12-month budget

Wednesday, Jun 18, 2014

* I missed this Phil Rogers story from the other day. Wow

Ten months after the biggest realignment in CPS history, the stage is set for a cataclysmic budget debacle, which could top $1 billion.

“It’s completely nuts,” says Chicago Teachers Union vice president Jesse Sharkey. “And unless we do something about it, we’re going to be facing a billion dollar budget crisis.”

At issue is a board plan to take 14 months of revenue for the coming 12 month school fiscal year, essentially borrowing money from the 2015-2016 school budget. School board president David Vitale did not dispute the number.

“It does allow us to avoid laying off thousands of teachers,” Vitale said. “It will lead to a serious problem a year from now, but the alternative is not very pretty, and it’s our judgment that we should do everything we can to maintain the quality we can for our kids.”

The CTU says it sees a more sinister motive for the budget sleight of hand.

“They don’t want to do it during a mayoral election,” said Sharkey. “So they’re kicking it to the following year.”

Man, oh, man.

- Posted by Rich Miller        

  1. - Shemp - Wednesday, Jun 18, 14 @ 10:08 am:

    Mind boggling.

  2. - OneMan - Wednesday, Jun 18, 14 @ 10:13 am:

    You think Quinn is calling his budget guy right now?

  3. - wordslinger - Wednesday, Jun 18, 14 @ 10:16 am:

    See? All the problems in the Chicago Public Schools are the teachers’ fault.

    If only a sharp businessman ran the school board, and a legendary (in his own mind) politician was mayor…..

  4. - Brilliant - Wednesday, Jun 18, 14 @ 10:18 am:

    Similar though less transparent moves being undertaken by Chicago for 2015.

  5. - walker - Wednesday, Jun 18, 14 @ 10:19 am:

    I thought the headline was referring to the State budget.

  6. - PhoenixRising - Wednesday, Jun 18, 14 @ 10:20 am:

    From a April 23rd Reboot article…

  7. - Rod - Wednesday, Jun 18, 14 @ 10:31 am:

    The IL General Assembly helped create this CPS problem by granting Mayor Daley virtually total control over CPS. Why wouldn’t Mayor Emanuel use the CPS lever of power to grant various constituencies perks, like the massive expansion of selective high schools and the cost of many millions of dollars, or the expansion of overcrowded elementary schools in both poor and middle class communities, or air conditioning, and on and on. None of these things CPS can afford to do given the situation with the pension fund and the low property tax rate in the city.

    The Il General Assembly and ISBE do not want to take responsibility for CPS and therefore handed it off to the Office of the Mayor of Chicago who appoints every member of the school board by state law. There is no popular vote for school board members in the city.

    Both the ISBE and the General Assembly are now reaping the fruits of political control over the largest school district in the state. If CPS blows up, the state will have to create the bail out framework just as it did in 1979 which is the last time the district went belly up.

  8. - RonOglesby - Wednesday, Jun 18, 14 @ 10:33 am:

    More budget tricks to kick the can farther down the road.
    CPS has some issues when it comes to management. The way the board is appointed, the one study where something like 40% of CPS teachers w/ kids sent their own kids to private schools, and on and on.

    Add on top of that that the Chicago population is not growing and they are seeing a shrinking number of kids. Yet costs aren’t changing.

    How to fix? no simple solution. But its politically expedient to kick the can down the road and more than likely not have to pay politically for it. Its illinois. Why expect any different.

  9. - Downstate - Wednesday, Jun 18, 14 @ 10:38 am:

    So, Mr. Banker, here is my plan.
    I was able to get a 16% wage increase for next year, because I’m now adopting a 14 month calendar.

    And next year, I’ll likely be able to give myself an even bigger raise!!!

  10. - Mason born - Wednesday, Jun 18, 14 @ 10:38 am:

    14 months for 12 = 10 months for 12 next year. Whoever proposed this ought to resign.

  11. - OneMan - Wednesday, Jun 18, 14 @ 10:51 am:

    14 months for 12 = 10 months for 12 next year. Whoever proposed this ought to resign.

    No, they are going to just keep ‘paying it forward’ then in 2021 There is going to be a great new ‘everyone home school for a year’ program

  12. - Steve - Wednesday, Jun 18, 14 @ 11:10 am:

    What David Vitale is also praying for is that the national economy doesn’t fall into to a recession. This slow recovery started in June 2009. If the economy should go into a recession in the next 24 months things will be much more “challenging”. CPS doesn’t have enough of a reserve fund or a backup plan for the next recession. This isn’t a small issue. Lastly, who else but the public sector could get away with such “kinky” accounting?

  13. - Downstate Illinois - Wednesday, Jun 18, 14 @ 11:17 am:

    There ought to be a law against this, or course, they would just ignore it.

  14. - Demoralized - Wednesday, Jun 18, 14 @ 11:19 am:

    ==Lastly, who else but the public sector could get away with such “kinky” accounting?==

    Not real in tune with the corporate world are you. They’ll get away with it for a while until the bill comes due. Same thing happens in the corporate world. They’ll get away with accounting gimmicks for a while, and then they’ll turn into the Enron’s of the world.

  15. - Yellow Dog Democrat - Wednesday, Jun 18, 14 @ 11:22 am:

    OneMan: Hilarious!

  16. - wordslinger - Wednesday, Jun 18, 14 @ 11:22 am:

    It’s a win-win for Emanuel — but only him, not citizens, students, teachers, etc.

    Kicks the can down the road until after the election, then he can use the “crisis” he created to take revenge on the teachers who beat him like a rented mule during the strike.

    Nice to see such sold “leading” citizens on the board enabling this selfish and petty fiasco.

  17. - RonOglesby - Wednesday, Jun 18, 14 @ 11:23 am:

    Yes, but in Enron and other cases people get prosecuted (or should). Will any of that happen here? probably not. As I mentioned above the only recourse is political and in Chicago there is no recourse.

  18. - Steve - Wednesday, Jun 18, 14 @ 11:27 am:

    - Demoralized -
    No company listed on the NYSE could keep the books that CPS has for years and years without the SEC knocking on there door. Pension plans in the corporate world have to be at least 80% funded, those that aren’t have legal consequences.

  19. - wordslinger - Wednesday, Jun 18, 14 @ 11:27 am:

    Dude, hinky accounting in the private sector is the American way.

    If you’re privately held, you hide as much as you can from the tax man and run as many personal expenses as you can through the business to knock down profits and benefit yourself.

  20. - a drop in - Wednesday, Jun 18, 14 @ 11:35 am:

    If this is true, Rahm is not running for reelection. This is a poison pill for the next mayor.

  21. - zatoichi - Wednesday, Jun 18, 14 @ 11:36 am:

    This is a shock? DHS has done the same thing in past years when some programs started running out of cash in March.

  22. - RonOglesby - Wednesday, Jun 18, 14 @ 11:40 am:

    But a publicly held company cannot to that and pass an audit/SEC scrutiny without fines and possible charges depending on the actual violation. I think the thing that gets people here is that those in charge think it is just fine and many (even here commenting) seem to be ok justifying because some others may get away with it.

  23. - wordslinger - Wednesday, Jun 18, 14 @ 11:43 am:

    –Pension plans in the corporate world have to be at least 80% funded, those that aren’t have legal consequences.–

    Consequences being walking through bankruptcy court to shed pension, laying off liabilities on the PBGC, then going back to business like nothing happened.

  24. - Bill White - Wednesday, Jun 18, 14 @ 11:45 am:

    Its the same problem Springfield faces - no one wants to be accountable for choosing between:

    A. More revenue

    B. Devastating cuts

    Thus, “magic tricks” and denial have become standard operating procedure.

  25. - Hit or Miss - Wednesday, Jun 18, 14 @ 11:47 am:

    Any such plan is fiscally irresponsible. Appears to me to be a trick to put off telling people the ‘bad news’ until after the next election.

  26. - Bill White - Wednesday, Jun 18, 14 @ 11:47 am:

    In Rauner-world, looting private sector pension plans is old school stuff. And since most private sector pension funds have already been looted, its time to find new targets.

  27. - wordslinger - Wednesday, Jun 18, 14 @ 11:49 am:

    Ron, I’m not sure that the SEC is the barracuda some are making them out to be.

    As far as the audit requirements, well, the outside auditors are in business to make money, too.

    My sister ran a private pension and benefits fund and for a number of years. Arthur Andersen (the late Chicago company, not our paisan) would send out some kids, they’d take a cursory look at the books and then try to upsell her on “consulting service.”

    They were more salesmen than auditors.

  28. - Chris - Wednesday, Jun 18, 14 @ 12:29 pm:

    “If this is true, Rahm is not running for reelection.”

    Why? Seems like a classic ‘put off the bad news til after election day, then have 4 years to figure it out’ move.

  29. - Union Man - Wednesday, Jun 18, 14 @ 12:45 pm:

    Fire all the teachers, let the kids roam the streets for a year or two until the budget is balanced. CPS just like the state knew a day of reckoning would come and they just ignored it!! Let them take the fall!! Not the teachers!! Someone needs jail time!!

  30. - Demoralized - Wednesday, Jun 18, 14 @ 12:46 pm:


    We have been subject to consequences from the SEC for not disclosing our pension liabilities accurately in our bond sales.

    I guess my point is no matter the gimmick, it will eventually come back to bite you in the rear end, whether you are a government or not.

  31. - Arthur Andersen - Wednesday, Jun 18, 14 @ 1:07 pm:

    Thanks for the clarification, word.

    Pointing out (with heaping helpings of snark) the fiscal follies of Blagoworld was how this handle came to be, for those that don’t know.

  32. - Precinct Captain - Wednesday, Jun 18, 14 @ 3:45 pm:

    Enron & the SEC was the same old story it’s always been and is still today. The SEC wasn’t paying attention because the ratings agencies and independent auditors were giving the client what they wanted to hear. CPS really oughta just get in on that game.

  33. - Robert the Bruce - Wednesday, Jun 18, 14 @ 5:04 pm:

    ==Nice to see such sold “leading” citizens on the board enabling this selfish and petty fiasco.==

    I wonder if there was any dissent - does retired Northwestern University president / CPS board member Dr. Bienen really need to do whatever the mayor wants?

  34. - Bill White - Wednesday, Jun 18, 14 @ 10:11 pm:

    In related news, there are calls to legalize insider trading:

    Yup, the SEC is a barracuda and 401(k) managers have our best interests at heart.

  35. - Rich Miller - Wednesday, Jun 18, 14 @ 10:22 pm:

    ===there are calls to legalize insider trading:===

    One call. From an obvious moron.

Sorry, comments for this post are now closed.

* Reader comments closed for the holiday weekend
* Zopp makes small cable TV buy during debate
* Exelon Just Received A $1.7 Billion Rate Increase Through The Market-Based Capacity Auction
* Question of the day
* Raoul: "Inflexible demands plus willful amnesia is no recipe for any negotiation"
* Violence spike blamed on budget cuts
* *** UPDATED - Home and doing better *** I'll be back later
* Gray hired by Trump
* MLB playoff open thread
* Once more, with feeling
* B3 fallout?
* Unclear on the concept
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Yesterday's blog posts

Visit our advertisers...







Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

* Major Windows 10 ‘Redstone’ update in the works already, ETA is July 2016
* 7 more countries now get local versions of YouTube
* OnePlus strikes partnership with Foxconn to join ‘Make in India’ program
* Toshiba DynaPad 2-in-1 comes with Wacom stylus, wasp waist, hefty price tag
* T-Mobile hikes iPhone 6s and 6s Plus JUMP! On Demand prices
* Pepsi phone? How about a Pepsi ‘line’ of Chinese phones and accessories?
* OnePlus Commits To Manufacturing Some Of Its Smartphones In India

* Podcast: Pitchers and Catchers review
* Chase Utley's takeout "slide" could be the tipping point
* First White Sox bench coach candidate emerges
* Hahn feels White Sox fanbase's frustration
* Sox to rely on improvement of core in 2016
* One benefit of the White Sox' lefty-heavy rotation
* Foot issue to sideline White Sox prospect Hawkins


Main Menu
Pundit rankings
Subscriber Content
Blagojevich Trial
Updated Posts

October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005


RSS Feed 2.0
Comments RSS 2.0


* SHORTAGE: Stock up on canned pumpkin before it'.....
* Better than tonight's Democratic Party Presiden.....
* Brown says Governor's call for supermajority is.....
* Miller: Bruce Rauner, Michael Madigan go back, .....

* McHenry teachers union approves contract to end strike
* EXCHANGE: Churches work together to preserve historic home
* Public can see Stanley Cup in Millennium Park on Wednesday
* Coalition urges Illinois communities to plant oak trees
* Automatic Illinois voter registration expected in committee
* $5M grant to ISU will aid young people in Champaign County
* Former reporter and Illinois Supreme Court spokesman dies
* Illinois agency investigating death of 1-year-old girl
* Judge: Class-action status allowed in deaf inmates' lawsuit
* Illinois delegate candidates for 2016 emerge

* Judge: Class-action status allowed in deaf inmates' lawsuit
* WSEC-TV's CapitolView: The continuing state budget impasse
* NightReach program's impact hampered by state budget impasse
* FOIA issue of emails on private devices goes back to court
* State criticized for approach to problem gambling
* For Illinois players, $1.6 billion in losses in three years
* More than 400 press passes issued for this year's Illinois State Fair
* Rauner names new chair of Illinois Historic Preservation Agency board
* Rail work to shut down Chicago-St. Louis Amtrak trains for two weeks
* Rail work to shut down Amtrak trains for two weeks

* Budweiser parent to buy rival for $106 billion
* Supreme Court spokesman Joe Tybor dies
* Did CPS get money's worth from tainted contract? Ex-board chief says yes
* Dissolving stent for heart arteries passes first large test
* Neglected tropical diseases taking hold in U.S.

* Clinton slams Trump in front of his Vegas casino
* Byrd-Bennett back in spotlight Tuesday — for expected guilty plea
* Cubs offer aldermen playoff tickets at face value
* Long road takes Ryan Garbutt to the ultimate hockey destination
* Brown: Time running out to fix Council inspector general mess
* Bike park opens in West Loop
* Emanuel stands behind claim about “YouTube” effect on policing
* Photo: Marian Hossa’s youth player card surfaces
* Blackhawks practice with giant puck
* Emanuel says he played no role in contract at heart of Byrd-Bennett indictment

* Weekend shooting toll: 4 dead, at least 16 wounded
* Separate shootings injure 6, including two 16-year-old boys
* Woman hurt after being struck by stolen car
* Ballhawks tout best seats at Wrigley - on Waveland Avenue
* Feds reject school district's plan for transgender student, locker room
* Emanuel, aldermen take Cubs up on face-value ticket offer
* Former Chicago schools chief to plead guilty Tuesday, source says
* Black councilman tased by police in Texas town where Sandra Bland was arrested
* Emanuel acknowledges his office aware of no-bid deal before vote
* Waukegan teen charged with shooting woman in Zion

* Judge: Class-action status allowed in deaf inmates' lawsuit
* Kathleen Parker: Don't do it, Paul Ryan
* WSEC-TV's CapitolView: The continuing state budget impasse
* NightReach program's impact hampered by state budget impasse
* FOIA issue of emails on private devices goes back to court
* Scott Gauvin: Citizens need more say in CWLP's future
* State criticized for approach to problem gambling
* For Illinois players, $1.6 billion in losses in three years
* Our Opinion: CWLP ratepayers want truth and a voice
* Statehouse Insider: Day 100 without a budget. And 101 and 102 and ...

* Top of the morning, Oct. 13, 2015
* Monday's highlights: 18 area golfers headed to state
* Area prep statistics: Girls' tennis (Oct. 13)
* Area prep statistics: Boys' soccer (Oct. 13)
* Area prep statistics: Girls' swimming and diving (Oct. 13)
* Danielson, Meyer lead charge for men's golf
* Tate: These 10 UI football issues can be resolved
* Urbana moves to make full METCAD payment
* 3 new faces join Unit 4 equity committee
* No rest for Cubit and staff during off week

* Dawn Patrol: Cubs slug their way past St. Louis; McHenry students return to class today
* Airport lodges opposition to Pheasant Run's residential plan
* Hoffman Estates might increase rebate for Duluth Trading Co.
* Evangelist brings down house at Judson University
* Will your boss let you watch Cubs game this afternoon?

* House lawmakers overcome hurdle on key tra...
* Rodney Davis talks funding with Bloomingto...
* The agency that fought Illiana gets a new ...
* Rep. Dold takes educational cruise down Ch...
* Lawmakers decry high turnover rate of VA h...
* CBD Oil, and politics
* Simon considering state Senate bid
* Killer Congressman Tom MacArthur trying to...
* Shutdown? State may not notice
* Rep. Bob Dold

* State senators propose law to reduce textb......

* Senate committee OKs nominee for US marsha......

* Drews becomes IAR president; logo celebrates IAR’s 100 years
* The hashtag winner for the 100th Anniversary contest; start using it now
* Letter: Will County communities should curb impact fees to spur growth
* Morning Minute: REALTORS® expect moderate price growth in the months ahead
* Local associations can get ‘covered’ on IAR’s 100th anniversary
* Learn about Crosby’s service award in Illinois REALTOR®
* Name change sanctioned by IAR board at Fall Business Meetings
* MRED becomes Centennial Sponsor for IAR’s 100th Anniversary
* ICYMI: Top 4 Stories on the IARbuzz Blog
* Morning Minute: 15 home maintenance projects for this fall

* Board’s New Rules Will Reduce Risk of Tire Fires and Disease-Carrying Mosquitos
* Illinois Hosts Inaugural Interstate Medical Licensure Compact - Aims to increase health care access through multi-state physician licensure program
* IEMA Announces Elgin Community College Attains ‘Ready to Respond Campus’ Designation - Elgin one of five Illinois campuses to receive distinction
* New Mortgage Loan Interface Increases Efficiency, Compliance
* State Fire Marshal Ushers In Fire Prevention Week - “Hear the Beep Where You Sleep!”

    Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller