SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
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        


35 Comments
  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…
    http://www.rebootillinois.com/2014/04/23/editors-picks/billmorris/placate-illinois-taxpayers-fix-chicago-public-schools-looming-budget-crisis-2015/7111/?utm_source=daiytip_20140423&utm_medium=email&utm_content=&utm_campaign


  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:

    @Demo
    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:

    @word,
    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:

    @Steve:

    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.
    http://usatoday30.usatoday.com/money/industries/banking/2002-10-06-sec_x.htm


  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? http://www.cpsboe.org/bios/4


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

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

    http://www.cnbc.com/id/101766558

    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.


* GOP leaders respond to special election push
* This just in... Special session called for January 8
* *** UPDATED x1 - GOMB disputes numbers *** Today's number: 3,000
* Shake this up, please
* On "war zones" and "foreign invasion"
* Topinka memorial roundup
* Question of the day - Golden Horseshoe Awards
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Yesterday's blog posts

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............


Search This Blog...

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

Search the 98th General Assembly By Keyword

          
        * Android 5.1 dates, Galaxy S6 Edge, Apple Touch ID Changes & more – Pocketnow Daily
        * Gameloft outs Brothers in Arms 3, now with more actions and bigger weapons
        * Yahoo Weather app on Android now with animated effects
        * Mobile Commerce Consolidation As Mozido Takes Majority Stake In CorFire
        * Photo Editing App 'Brushstroke' Named App of the Week, Available for Free
        * Xperia Z4 details emerge out of recent Sony Pictures hack
        * Nexus 9’s leather covers show signs of life

        * Wear It, Charge It: Cabelet Charging Bracelet
        * Patch It, Wipe It: Microfiber Lens Cleanse Patches
        * Lather Up: Crystal and Geode Hand Soaps
        * Scrub and Dance: Octaloofah is a Massager, Loofah, and Speaker In One
        * Fooled Ya: Chocolate Lumps Of Coal
        * Uber to halt rides in Portland, Ore., until April; city to drop lawsuit
        * Most Popular iPhone Downloads and Posts of 2014

        * White Sox sign George Kottaras to a minor league deal
        * Kottaras to join White Sox with Minor League deal
        * Loss of Draft picks viewed as good trade for White Sox
        * Windy City revival: Cubs, White Sox revamped for '15
        * ZiPS projections underscore White Sox's riskiest bets
        * AL Central looking like one powerhouse division
        * Samardzija, Lester are right fits in Windy City

        ...............


        Main Menu
        Home
        Illinois
        YouTube
        Pundit rankings
        Obama
        Subscriber Content
        Durbin
        Burris
        Blagojevich Trial
        Advertising
        Updated Posts
        Polls

        Archives
        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

        Syndication

        RSS Feed 2.0
        Comments RSS 2.0
        WordPress

        Loading


        * Quinn Sets Special Session..
        * Quinn calls legislature back to Springfield to .....
        * Inauguration Preparation Underway..
        * GOP says Rauner should appoint next comptroller..


        * China pledges to speed entry of US pharmaceuticals
        * Report: Illinois fails to monitor runaway kids
        * Gov. Quinn calls session for comptroller election
        * Chickenpox forces southern Illinois prison lockdown
        * Instructor at Illinois school for visually impaired arrested
        * Chicago announces plans to build 88-story skyscraper
        * GOP says Rauner should appoint next comptroller
        * Quincy mother gets 2 years for unlawful restraint
        * Contract to bring 75 jobs to Scott Air Force Base
        * Illinois jobless rate falls to 6.4 percent

        * Quinn calls legislature back to Springfield to approve special election to replace Topinka
        * Audit: DCFS loses track of runaways
        * Audit: Illinois fails to monitor runaway kids
        * Chicago couple convicted of stealing state grants
        * Topinka remembered as tough, honest leader at memorial service
        * Illinois employers reminded of income-tax rollback
        * Memorial service for Topinka begins in suburban Chicago
        * Police use vacant Jacksonville site to train for worst-case scenarios
        * State-grant fraud case in hands of federal jury
        * Gov.-elect Rauner says some agency directors may stay

        * McDonald's to sponsor 2015 SXSW festival
        * Chicago tourism arm opens fourth bureau in China
        * Dow soars more than 400 points
        * Mayor Emanuel will vacation in Chile
        * University of Illinois at Chicago names next chancellor


        * Sony’s choice on ‘The Interview’ is one lost battle in a long war
        * Emanuel denies Willie Wilson petition challenge is racist ploy
        * Ex-FBI agent’s book tells mob tales in ‘A Gun in My Gucci'
        * Off Message: The Year in Review
        * Dem Rep. Bill Foster talking to big donors about U.S. Senate race
        * Brookfield Zoo welcomes another baby dolphin
        * Dozens gather at Logan Square eatery for ‘Serial’ podcast
        * A whole lot of nothing from the City Council
        * Garcia vows to hire the 1,000 police officers Emanuel promised
        * Emanuel vows to introduce his own privatization ordinance


        * Chicago man shot to death in Montgomery
        * 3 people injured in separate shootings
        * Santa helps Catholic school complete fundraising mission
        * Rahm Emanuel defends record on ethics in first term
        * Restaurants that repeatedly failed health inspections in 2014: analysis
        * Second bottlenose dolphin born at Brookfield Zoo
        * 2 found dead in South Side home died in murder-suicide
        * Wisconsin girls in Slenderman case ruled competent to stand trial
        * North Chicago 21-year-old dies after hit and run in Waukegan
        * Suspect in 2 downtown bank robberies caught red-handed


        * Parties' Power Grabs In Battle For Comptroller; Quinn Calls Legislators Into Special Session
        * Let's Talk Kids - "Your Phone-a-Friend List"
        * Vatican signals new tone on US nuns
        * StoryCorps: Bilingual pre-school teacher describes the state of education in Chicago
        * Chicago mayor's commission unveils plan for a safer Chicago
        * US announces protections for transgender workers
        * Cook County to join cameras-in-court program
        * IIAA Teaches Life Skills Through Sports
        * Illinois Republican: Cuba Agreement "Good First Step"
        * Unions sue to stop Chicago pension overhaul


        * E.J. Dionne: Chuck Schumer: Take two
        * Esther Cepeda: The rainbow that isn’t
        * Raoul, Righter, Nekritz, Sandack: Clarifying privacy, eavesdropping bill
        * Quote of the day: Friday, Dec. 19, 2014
        * Quinn calls legislature back to Springfield to approve special election to replace Topinka
        * Audit: DCFS loses track of runaways
        * Audit: Illinois fails to monitor runaway kids
        * Bernard Schoenburg: Schmidt considers challenging Sgro for park board president
        * Brian Sauder: Faithful decisions for the holidays
        * Eugene Robinson: The price of being hacked


        * Local leaders weigh in on benefits of change in US-Cuban relationship
        * Discharge law not clear with some farmers
        * Carbondale woman tells story of being carjacked
        * Goodfellow Fund 12/19/14
        * Going bowling: Predictions for all the games
        * Bowl prep: EIU coach familiar with UI opponent
        * No surprise: O'Toole to start
        * A closer look at Illini, Tigers
        * McMahon's a CLASS act
        * Winchester wins state title


        * Bucks spoil Cousins' return, beat Kings 108-107
        * Butler scores 35, Bulls beat Knicks 103-97
        * BC-SC--South Carolina News Digest, SC
        * BC-BKC--Walla Walla University-Idaho Box
        * BC-BKC--Walla Walla University-Idaho Long Box

        * Illinois House Dems agonize over vote to f...
        * Bera and Holding to be co-chairs of Congre...
        * Congressman calls for removal of police co...
        * Ami Bera, George Holding are new co-chairs...
        * Congressmen Plan House Speech on Chicago's...
        * Ami Bera, George Holding are new co-chairs...
        * Davis To Obama: 'Do Everything In Your Pow...
        * Roskam Lands High-Profile House Post After...
        * Rahm Touts New Law to Clear Juvenile Polic...
        * Roskam secures Ways and Means oversight po...

        * Durbin on Cuba Relations...
        * Not much chance of Congress stopping Cuba ......
        * Defense Department IG investigating POV co......
        * Reaction to release of Alan Gross, future ......
        * Galesburg veterans facility named in honor......

        * GOP senator wants 'The Interview' shown at......
        * Sen. Kirk suggests raising money with scre......

        * Expert Writing Service for Students’ Deductive Writing
        * Will Jan. 8 mean anything?
        * Remember "Night After Night"
        * Santa's Taking The L Through Uptown
        * Party With The Pups At Driftwood
        * Santa's Taking The L Through Uptown (Updated)
        * Kinzinger bullish on America and Illinois
        * Illinois U.S. Sen. Mark Kirk Promises to Screen 'The Interview' at Fundraisers
        * Quinn calls for special session to push special 2016 comptroller election
        * Rocco Claps Honored at 23rd Annual Excellence in Public Service Award Breakfast


        * Governor Quinn Calls Legislative Special Session - Governor Urges Legislature to Set Up 2016 Special Election for Comptroller
        * Governor Quinn Announces Illinois’ Unemployment Rate Hits New Low - Illinois’ Economic Comeback Continues; Unemployment Rate Falls to Lowest Level in More than Six Years
        * Illinois Ranks #1 in Volunteer Rate Among the Country’s 8 Largest States - 2.57 Million Illinoisans Give $7.2 Billion in Service
        * Law Enforcement, IDOT Make Final Push to Save Lives in 2014, Roadside Safety Checks Planned Over Holidays - New Episode of “The Driving Dead” Premieres Friday as Holiday Travelers are Reminded to Drive Sober and Buckle Up
        * Department of Insurance Announces Two Convictions Resulting from its Workers’ Compensation Fraud Investigations - Former Crystal Lake Police Officer and Former Business Owner Convicted




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