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A few last thoughts for the day

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* A somewhat critical editorial from Crain’s…

We’re one year into the administration of Gov. Bruce Rauner, but somehow we’re still in campaign season. The latest never-going-to-happen idea: a state takeover of Chicago Public Schools and, possibly, a trip to bankruptcy court.

This plan, unveiled today in semi-baked form by the Republican governor’s legislative lieutenants Christine Radogno and Jim Durkin, doesn’t have a prayer of passing a Democratic-controlled General Assembly, so why propose it?

Even if a state takeover had a shot at passage, there are reasons to doubt it’s a good idea. Other cities have tried the “run it like a business” model with unintended and sometimes disastrous results. Google “Flint Michigan” and “water” for details.

Let’s be clear: CPS is a train wreck. The Board of Education approved an irresponsible budget with a $500 million hole in it. The Chicago Teachers Union is seeking hundreds of millions of new money but isn’t willing to add a penny to the employees’ pension contributions. The system keeps borrowing to meet short-term needs, and the cost of that borrowing is only going up. And CPS—which has been led by a merry-go-round of CEOs for the past five years under Mayor Rahm Emanuel—is so incompetent that it can’t account for the desks and chairs that were in the 50 schools it closed two years ago.

Against this backdrop, the idea of a takeover has a certain appeal. But a takeover by whom? The state of Illinois? Springfield, now entering Month 7 of a disastrous budget impasse, hardly seems the right place to look for guidance on effective governance.

* Somewhat less serious…

Its like giving Chipotle control of the public health dept #FixTheFormula GOP to move for state takeover of CPS: https://t.co/HkHLnuH16N

— Andy Manar (@AndyManar) January 20, 2016

* Somewhat less humorous…

In response to the forthcoming legislation seeking to allow for the bankruptcy and government takeover of the city of Chicago and Chicago Public Schools being pushed by the governor and Republican leaders, Senate Assistant Majority Leader Kimberly A. Lightford released the following statement.

“The Republican administration has gone too far, and the governor has shirked his real duties to the people. If he wants so desperately to restructure Chicago Public Schools, he should start by restructuring the systemic prejudice that continues to permeate our children’s schools.

“Chicago is not a third world country to be seized by a government. This is not our path to success. All of our leaders need to treat Chicago students and teachers with respect, value them as equally as any other student or teacher and be willing to proactively restructure our education system for the next generation.”

Whew.

* Somewhat overly optimistic…

The legislation would also allow CPS to declare bankruptcy. And Rauner tried to calm nerves that tend to fray when the word ‘bankruptcy’ is used.

“Many people hear the word ‘bankruptcy’ and you think: ‘That’s horrible. That’s a disaster. That means massive layoffs. That means firings. That means destruction of the system.’ It does not mean that at all,” Rauner said.

“In fact, the liabilities are restructured so we can afford to hire even more teachers, if it’s done properly.”

…Adding… Mark Brown is more than somewhat on the mark…

As soon as Rauner drops his union fixation, it might be possible for him to finally get something accomplished.

posted by Rich Miller
Wednesday, Jan 20, 16 @ 4:45 pm

Comments

  1. CPS’ last two budgets might be the only two budgets in America worse than the State of Illinois’ last two deficit ridden budgets.

    If there are any alternative ideas to this from the Democrats or CPS, now would be the time to speak up. Would you prefer Chicago raise taxes again? Layoff teachers? Close more schools? Borrow more money?

    Comment by Anonymous Wednesday, Jan 20, 16 @ 4:50 pm

  2. Doesn’t this give Rahm cover for sending out pink slips?

    Comment by ? Wednesday, Jan 20, 16 @ 4:55 pm

  3. ===”Many people hear the word ‘bankruptcy’ and you think: ‘That’s horrible. That’s a disaster. That means massive layoffs. That means firings. That means destruction of the system.’ It does not mean that at all,” (Gov. Bruce) Rauner said.

    “In fact, the liabilities are restructured so we can afford to hire even more teachers, if it’s done properly.”===

    Hmm. Interesting.

    Jim Edgar… thoughts?

    ===“He (Gov. Rauner) does not come from government,” Edgar said of the governor, who was a venture capitalist. “He doesn’t even really come from mainstream business. He comes from (being an) entrepreneur where you buy a business, you tear it apart and you sell it. … I don’t think you’re going to tear apart the state and sell it. He might want to, but you can’t do that.”===

    Somethin’ to think about when Rauner talks about bankruptcy.

    Comment by Oswego Willy Wednesday, Jan 20, 16 @ 4:56 pm

  4. “_____ doesn’t have a prayer of passing a Democratic-controlled General Assembly, so why propose it?”

    If Rauner, and the Raunerites he controls, would just learn this, things would be so much better.

    Comment by AC Wednesday, Jan 20, 16 @ 5:00 pm

  5. An elected rather than appointed school board would be a start. CPS is too top heavy in Admin. slash there. Claypool was a good choice for an Admin who will make tough calls and make tough cuts, but he has only been in the position for about 6 mos. b/c of the Constitution the pension problem isn’t going away, bankruptcy or not. The Superstars need to realize that.

    Comment by burbanite Wednesday, Jan 20, 16 @ 5:11 pm

  6. Love the Manar tweet.

    Comment by Norseman Wednesday, Jan 20, 16 @ 5:12 pm

  7. I get that BK seems horrible and drastic, but what other options does CPS have? Every proposal from democrats amounts to more revenue (fix the formula, raise taxes, etc.), but none address any of the structural cost drivers of CPS. At this point, CPS has just grown into a frankenstein who’s only cure might be the drastic medicine Rauner is trying to prescribe.

    Comment by NixonHead Wednesday, Jan 20, 16 @ 5:15 pm

  8. “As soon as Rauner drops his union fixation, it might be possible for him to finally get something accomplished.”
    rauner has to ask the Koch bros if he can drop the anti-Union stuff first.

    Comment by oldhp Wednesday, Jan 20, 16 @ 5:16 pm

  9. Brown is about “78.25%” right…

    Rauner is “0%” successful while attacking Unions.

    Something to consider… SuperStars

    Comment by Oswego Willy Wednesday, Jan 20, 16 @ 5:16 pm

  10. ===rauner has to ask the Koch bros===

    Don’t be a dope. The man has more money than he’ll ever need and wealthy friends who don’t care what the Kochs say.

    Comment by Rich Miller Wednesday, Jan 20, 16 @ 5:17 pm

  11. ==As soon as Rauner drops his union fixation==

    Billions of years from now, when our sun transforms into a red giant, it will expand to such a large size that it boils away the oceans and envelopes planet earth, perhaps then.

    Comment by AC Wednesday, Jan 20, 16 @ 5:24 pm

  12. perhaps someone can explain how CPS can be fixed without changing collective bargaining for CTU.

    Comment by Iron Duke Wednesday, Jan 20, 16 @ 5:25 pm

  13. I suspect the “dope” way of thinking is assuming that Rauner wants things accomplished. The longer he keeps things in a stranglehold — union-fixation included — the more money he can raise on the “crisis”.

    Again — it’s not the veracity of what Rauner says. Or even, at this point, the plausibility. It’s the bully-pulpit and the ability to say it. This is what fires up the base. And the base — now and moving forward — is what matters.

    Comment by Macbeth Wednesday, Jan 20, 16 @ 5:25 pm

  14. ==As soon as Rauner drops his union fixation==

    Never. Gonna. Happen.

    It’s all he lives for.

    Comment by Wensicia Wednesday, Jan 20, 16 @ 5:31 pm

  15. ===without changing collective bargaining for CTU===

    I’d like to wait and see how the bargaining actually goes before jumping to that conclusion.

    Comment by Rich Miller Wednesday, Jan 20, 16 @ 5:31 pm

  16. To reduce its budget deficit, should CPS declare bankruptcy in order to forcibly void or rework existing union and vendor contracts, instead of levying additional property taxes?

    I would vote no to this referendum question, but I expect I would be in the minority. Voters are selfish and would prefer that their school district walk away from its contractual obligations if that became an option.

    Comment by James Wednesday, Jan 20, 16 @ 5:37 pm

  17. When Rauner’s in charge of a business bankruptcy does mean massive layoffs and other disastrous consequences.

    https://web.archive.org/web/20141210165836/http://illinoisfreedom.com/issues/bankruptcy-job-loss/

    Comment by Bull Moose Wednesday, Jan 20, 16 @ 5:39 pm

  18. Just like on the federal level, the GOP only cares about “local control” when it suits their purposes. When it came to “right to work”, Rauner was quick to play the local control card. But when it comes to CPS…

    Comment by Timmeh Wednesday, Jan 20, 16 @ 5:43 pm

  19. this strikes me simple Rauner anti union posturing because he is late with the accusation. new management brought in recently at the CPS is of the slash the budget and squeeze on all contracts type. they seem to be on the right track over there, about to slash admin staff. so Rauner is late on making this charge that the Mayor is not doing anything about the schools. cause it’s not really about doing something in Rauner’s world. it is about being anti union. period.

    Comment by Amalia Wednesday, Jan 20, 16 @ 5:56 pm

  20. –“Many people hear the word ‘bankruptcy’ and you think: ‘That’s horrible. That’s a disaster. That means massive layoffs. That means firings. That means destruction of the system.’ It does not mean that at all,” Rauner said.

    “In fact, the liabilities are restructured so we can afford to hire even more teachers, if it’s done properly.”–

    Dig Gov. Peter Francis Geraci here, the leader of the Illinois Republican Party.

    Does he have a toll-free number for free info-tapes on how he can get your government out of debt?

    Geez, I think I’m tripping sometimes with this guy.

    This is what he chose to do in retirement? Baby, I’d be sleeping on the beach in Goa right now. Wouldn’t be tuning up n-e-ba-dee.

    If the governor doesn’t get his Turnaround Agenda, what’s next?

    Light a match?

    Once a bustout schemer, always a bustout schemer.

    Comment by wordslinger Wednesday, Jan 20, 16 @ 6:09 pm

  21. Declaring bankruptcy would have a negative impact on CPS’s ability to get good vendors. Would you want to bid for work if you think CPS may only pay you a percentage of what it owes?

    On the customer side, will families with the private school/suburban school options want to attend a CPS school if there isn’t a stable school system?

    Comment by Chicago Guy Wednesday, Jan 20, 16 @ 6:15 pm

  22. Rauner and Co. seem to think that the bankruptcy’s impact will focus on union wages and benefits. My sense is that is not accurate. My memory is pensions and benefits were protected more than other types of debt/costs when Detroit went bankrupt. There were also a number of unintended ramifications such as the Art Museum having to raise money to buy Art that technically belonged to the City in order to save it from being sold off.

    Comment by Chicago Guy Wednesday, Jan 20, 16 @ 6:24 pm

  23. Just curious, but what was Senator Lightford’s response when the state took over East St. Louis? Did it include the same vim and vigor as this statement? And where has her solution been all these years?! She had been in leadership for a while. All of these reactionary statements and attached hyperbole put the responding parties in the same light as AFSCME’s replies to the Governor - a figurative day late and a massive dollar short.

    Comment by Team Sleep Wednesday, Jan 20, 16 @ 6:32 pm

  24. Apologizes for the typos above.

    Comment by RNUG Wednesday, Jan 20, 16 @ 6:34 pm

  25. @ Chicago Guy - the Stockton, CA case described that the City of Stock COULD HAVE shorted the pension system and treated it the same as all the other creditors if it wanted to. Stockton chose not to, despite being legally able to.

    Comment by NixonHead Wednesday, Jan 20, 16 @ 6:35 pm

  26. -NixonHead-

    California has different (weaker) pension laws than Illinois.

    Comment by RNUG Wednesday, Jan 20, 16 @ 6:41 pm

  27. -NixonHead-

    And one of the structural problems with CPS is the deliberate decision to keep low property taxes. Another was the decision to skip pension payments instead of raising taxes. It wasn’t just a spending problem.

    Comment by RNUG Wednesday, Jan 20, 16 @ 6:45 pm

  28. Sorry Sen. Lightford, I am not buying some your equality hyperbole. Thanks to your “tinkering” student discipline became much mor time consuming and less effective for districts that didn’t have issue before. Just because you have been to school does not know how to run one.

    As for the governor and high falutin pals and psychophants schools are not a business. In business if you are a baker and you buy blueberries for your blueberry muffins and they are bad, you send them back. Schools don’t send their blueberries back. We keep all of them and do the best we possibly can for all of them.

    Rahm and CTU need to be accountable for CPS and the mess it is in. Only they can really fix it. But they would have to put self interest and some awfully big egos aside before they could focus on doing what is best for kids.

    Comment by JS Mill Wednesday, Jan 20, 16 @ 6:46 pm

  29. If Rauner can’t get a budget pass, how is this guy thinking he can get this passed. Dunkin vote wont matter as it won’t get out of committee.

    Comment by Dunkin Doughnuts Wednesday, Jan 20, 16 @ 6:48 pm

  30. @ RNUG - agreed. It’s certainly a revenue:expense problem.

    Looking at the Ernst & Young report, it appears that the deficit will match incoming revenue in 2020. For anyone that thinks BK won’t happen, all you need is a calculator and you’ll witness it happen right in front of you. Check will bounce.

    Comment by NixonHead Wednesday, Jan 20, 16 @ 6:53 pm

  31. CPS and their pension fund would have fewer problems today had they not spent all that money they received from the State for pension contributions ($65m/year starting in 1995 well into Blago’s time) on retiree healthcare subsidies.

    Comment by Arthur Andersen Wednesday, Jan 20, 16 @ 6:54 pm

  32. Ha! Info-tapes— best laugh of the day.

    Comment by DuPage Dave Wednesday, Jan 20, 16 @ 6:57 pm

  33. ==Does he have a toll-free number for free info-tapes on how he can get your government out of debt?==

    Are you drowning in debt? Are you tired of creditors calling your major city broke? Are you confused about the differences between Chapter 7 and Chapter 13? Are schoolteachers and their constitutionally protected pensions keeping you up at night? Call Rauner, Radogno & Sandack to find out why bankruptsy is right for you.

    Comment by AC Wednesday, Jan 20, 16 @ 7:15 pm

  34. Rauner, Durkin and Ragando (sp)over the last two days, showed Illinois voters and the country how incompetent they all are. There is no way, this is going to fly thru either house, before and after the coming election.

    What RDR trio above accomplished, was to motivate one of the most organized unions in the state, as well as, draw to arms every union, its members, across the state to work at defeating every republican running for office.

    The legacy Rauner wrote for himself in the Illinois history books was to solidify the democratic party across the state.

    Their actions are comedic.

    And Bruce, I’m not sure and I think the voting public are beginning to question your sanity. GE didn’t come to Illinois because of your manic, inconsistent, grasping at straws behavior.

    Does Bruce have a history of needing psychotropic medications?

    Comment by Tinsel Town Wednesday, Jan 20, 16 @ 7:38 pm

  35. The only people in need of psychotropic medications are those enabling a continuation of CPS’ current course towards insolvency.

    Comment by Anonymous Wednesday, Jan 20, 16 @ 8:12 pm

  36. “As soon as Rauner drops his union fixation, it might be possible for him to finally get something accomplished.” Brown, is this a joke? Do you really think it is possible for Rauner to drop his union fixation?

    Comment by Mama Wednesday, Jan 20, 16 @ 8:14 pm

  37. CPS debts far exceed their assets. They are in technical bankruptcy.

    They have no plan -

    As soon as the checks start bouncing they will be put in bankruptcy.

    Rauer will then say me offered a plan. Enter a receiver.

    Comment by cannon649 Wednesday, Jan 20, 16 @ 8:24 pm

  38. How our state/city of Chicago thinks they can have all they want with no increase in revenue is beyond me. The way some people talk—specifically our governor, you’d think he’s jealous of all those schoolteachers, so filthy rich that each and every one of them are about to buy their 10th house and show him up, making him look like a financial loafer. Hah.

    Comment by Anonymous Wednesday, Jan 20, 16 @ 8:30 pm

  39. i know how to solve the CPS financial problems. Treat the Charter Schools in the same manner the State is treating other vendors and not pay them. CPS should tell the Charters that the State has not appropriated enough money to fund the school districts so they are going to have to rely on the fund raising. Sorry. The fact that charter schools would be impacted explains why the Governor agreed to funding K-12 education.

    Comment by Triple fat Wednesday, Jan 20, 16 @ 9:58 pm

  40. When Team Rauner proposed the takeover of CPS, they knew it would never have a chance in the GA. I expect that this is an effort to more directly tie the Speaker to Rahm and the CPS in the public’s eyes, at a point of extreme weakness for Rahm. The GA will be painted as doing nothing about the problem, and as actually inhibiting the Gov’s efforts to take on the problem.

    Comment by Lincoln Lad Wednesday, Jan 20, 16 @ 10:08 pm

  41. The following gives examples of how Charter Schools are robbing school districts blind and how private equity firms profit as landlords, financiers and business partners.
    http://www.alternet.org/election-2014/who-profiting-charters-big-bucks-behind-charter-school-secrecy-financial-scandal-and

    Comment by Triple fat Wednesday, Jan 20, 16 @ 10:36 pm

  42. Here is part 1 listed in the write up. It even gives a shout out to Chicago Public School closures.
    http://www.alternet.org/education/punishing-students-not-making-eye-contact-how-charter-schools-prejudiced-policies-continue?paging=off

    Comment by Triple fat Wednesday, Jan 20, 16 @ 10:39 pm

  43. And from Forbes…
    http://www.forbes.com/sites/greatspeculations/2013/09/10/charter-school-gravy-train-runs-express-to-fat-city/2/#2715e4857a0b38346e5437e4

    Comment by Triple fat Thursday, Jan 21, 16 @ 12:20 am

  44. Pre-Budget Address distraction alert…

    Pay no attention to the lack of a budget and my racking up 33 million more in debt every day I continue to demand my 1.4% savings via my turnaround agenda before I even begin talking about the revenue and expense details of the 2016 budget.

    The state might have been running deficits before Rauner, but compared to the 33 million dollar per day hole that Rauner’s busy digging, it was Nirvana before.

    Comment by PublicServant Thursday, Jan 21, 16 @ 5:51 am

  45. 10 years ago I started helping a progressive friend run for alderman. I am a limited government kind of guy so we had to find common ground for me to be the campaign chair. The issue I found was TIFs they were clearly taking money for the designated purposes(schools and city government) for promised long term economic gain. 10 years later 1 TIF district has expired many more created and the promised increase in tax base has not occurred. Disband all the TIFs and I will listen to the City how they might go forward.

    The Target is built. Does the Wilson Yard TIF need to continue to exist? The tax revenue from that area is frozen for another 10+ years it makes no sense.

    Comment by jeffinginChicago Thursday, Jan 21, 16 @ 8:15 am

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