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* Tribune…
Chicago Public Schools CEO Forrest Claypool on Tuesday warned that cuts to the classroom would be necessary if teachers don’t agree to concessions in a new contract.
Claypool ratcheted up pressure on the Chicago Teachers Union a day after the district unveiled a budget that assumes teachers will accept contract terms similar to those that were rejected in February by a union bargaining team.
“The alternative is cuts to the classroom,” Claypool said during a meeting with the Tribune Editorial Board. “We don’t believe it’s the right thing to do, and we’re hopeful that upon reflection the teachers union will understand that’s not the right thing to do either.” […]
“I think if he wants to take a look at who’s been doing the cutting and who’s responsible for the cutting, he should look in the mirror,” CTU Vice President Jesse Sharkey said. “To turn around and blame that on us is really hypocritical and not acceptable.”
That is some weak spin by the CTU. There’ve been cuts because cuts are needed so schools can stay open. It’s now the CTU’s turn.
* But don’t hold your breath…
The district’s contract proposal phased out the district’s longstanding practice of picking up the bulk of teacher pension contributions and increased union insurance premiums in exchange for a series of pay hikes over four years and a promise of no economic layoffs. Union leaders have long said ending the pension pickup could be cause for a strike.
“At some point, a line has to be drawn in the sand. Chicago teachers do not seek to go on strike. We want to return to clean, safe, resourced schools. We want a fair contract,” Lewis said. “We will not accept an imposed pay cut.”
Sometimes, a fair contract means less money. Just ask the UAW, which negotiated a fair contract to keep GM from collapsing.
* More from Karen Lewis…
“The CTU has also been very clear—CPS is broke on purpose. Instead of chasing phantom revenue in Springfield and in between the seat cushions of Chicago taxpayers, Mayor Emanuel and the Chicago City Council can show true leadership and guts by reinstating the corporate head tax, declaring a TIF surplus and fighting for progressive taxation that would pull in revenue from the uber-wealthy in our city and state. The rich must pay their fair share.”
Reinstating the head tax would bring in about $23 million. Emanuel is currently working out a reasonable plan on the TIF surplus issue. And a progressive tax is a pipe dream unless significantly more liberals are elected to both legislative chambers.
* More Lewis…
“And, though educators have already returned about $2 billion in salary and benefits to the district, with $100 million being returned this year alone, we are being asked to give more when there is nothing left to give. Understand that budget cuts impact students; they include cuts to programming, staffing and services.
$100 million? That’s all you got? Out of a $5.4 billion budget?
posted by Rich Miller
Wednesday, Aug 10, 16 @ 10:36 am
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Strike. That’s just a really uneducated move in the eyes of the public. Taxes going through the roof, unsafe streets and add a teachers strike because they don’t want to pay for their own pensions. Yea, John Q Public is going to love this.
Comment by Big Muddy Wednesday, Aug 10, 16 @ 10:42 am
The head tax?
Yeah, let’s punish companies for hiring. Let’s see how that impacts Chicago business and the tax base generally.
It continues to amaze me that the teachers chose Lewis to be their leader. She did a terrible job with the last contract, resulting in teachers being fired, she continues to make crazy statements, and yet they continue to elect her. It is boggling.
Comment by Gooner Wednesday, Aug 10, 16 @ 10:43 am
For the purpose of this post, I have no problem calling myself a tax and spend liberal, but the head tax is just absolute garbage economic policy. Find anything else to tax.
Comment by Juice Wednesday, Aug 10, 16 @ 10:46 am
==- Big Muddy - Wednesday, Aug 10, 16 @ 10:42 am:==
I’m sure John Q Public loves 40 kids in the classroom and 3 study halls because you laid off music, art, and gym teachers.
Comment by Precinct Captain Wednesday, Aug 10, 16 @ 10:50 am
I am often reminded of the CTA doomsdays a few years ago. A big part of that solution was lowering the CTA pensions and benefits for union employees. Law was changed to lower those pensions and benefits and the unions were forced to agree to it by Democratic leadership because otherwise there would be more cuts; why can’t the same be done for CPS?
Comment by Just Me Wednesday, Aug 10, 16 @ 10:53 am
Just me- the larger impact of the CTA pension changes was for new employees. Current employees saw an increase in their contributions which essentially offset by increases in pay. And then this was coupled with pretty large ongoing state subsidies to the RTA.
Comment by Juice Wednesday, Aug 10, 16 @ 11:03 am
Precinct Captain,
I’m sure John Q Public loves the increases in tax burden with no additional services just so teachers don’t have to pay their portion of their retirement all while Chicago remains a combat zone.
Comment by Big Muddy Wednesday, Aug 10, 16 @ 11:06 am
=“And, though educators have already returned about $2 billion in salary and benefits to the district, with $100 million being returned this year alone….. “=
What in the world is Karen Lewis talking about?! CTU members have NEVER, EVER taken a pay cut, and CPS is not asking them to do so now. They’re just saying, hey, given that we’re almost broke and trying to save your jobs and pensions, maybe pretty please you could take a slightly smaller RAISE this time??? Especially when City and State taxpayers just bailed you out?
For crying out loud.
Comment by Taxpayer Shocked Wednesday, Aug 10, 16 @ 11:11 am
Tax Tax and more Tax. Any other ideas Karen?
Comment by atsuishin Wednesday, Aug 10, 16 @ 11:11 am
Another textbook lose-lose. Between the administration and the union leaders, the teachers stand no chance.
Go ahead. Strike.
Comment by Touré's Latte Wednesday, Aug 10, 16 @ 11:12 am
Perhaps they could pass another record property tax increase so CTU members can continue to contribute less than 1/3 the rest of us have to pay into social security?
Comment by Very fed up Wednesday, Aug 10, 16 @ 11:17 am
It is worth noting that those same negotiations gave 17.5% of GM’s common stock to a UAW trust fund for retiree medical costs. That’s a big “consideration.”
Comment by Expletivedeleted Wednesday, Aug 10, 16 @ 11:21 am
Everything CPS Management and CTU say about each other is true.
Comment by Anon Wednesday, Aug 10, 16 @ 11:22 am
This why I wish I could receive a voucher and choose which school I would send my children to. Because I’m not rich I am stuck at CPS.
Comment by Groucho Wednesday, Aug 10, 16 @ 11:22 am
Wow… The Union is tone deaf. The teachers are basically threatening to keep the kids in a warzone because they don’t want to increase their portion of their pensions? What’s worse.. Yesterday as the deadliest day in the afternoon and evening …ever. The only hope they have is the fact everyone is desensitized to the horror. Truly disgusting.
Comment by Echo The Bunnyman Wednesday, Aug 10, 16 @ 11:25 am
CPS teachers are not covered by social security. CPS doesn’t pay the 6.5% social security tax, so a 7% pension is only about one half of 1% more then what all private employers pay.
Comment by DuPage Wednesday, Aug 10, 16 @ 11:33 am
Here’s what frightens me about CTU: that they’re setting up a “cave” where they agree to the financial compensation in exchange for non-monetary items like the ability to live in the suburbs or a shorter school year (they could take back the longer school -day- as there’s scant evidence that’s effective and the deal they agreed to directed most of the extra hours to non-core subjects).
Comment by lake county democrat Wednesday, Aug 10, 16 @ 11:37 am
==I’m sure John Q Public loves 40 kids in the classroom==
Sit down and hold onto your hat, because this may shock you! Many of us “John Q Publics” actually lived through, and learned, and made it to adulthood –quite successfully I might add– with 40 others in our class and no teacher’s aid in the classroom either.
Comment by Responsa Wednesday, Aug 10, 16 @ 11:43 am
===I’m sure John Q Public loves the increases in tax burden with no additional services===
Keep in mind that Chicago has the lowest property tax rate in all of Cook County.
Comment by Small town taxpayer Wednesday, Aug 10, 16 @ 11:45 am
DuPage, CPS pays the employer portion of the normal cost of the pension, which is more than 6.5% SS tax. They also pay a significant portion of the employee contribution.
Comment by Anonymous Wednesday, Aug 10, 16 @ 11:55 am
This is all rhetoric, and meaningless. Get back to the bargaining table, folks. CTU knows that its revenue sources aren’t enough and won’t pass. However, they will continue to talk tough because Rahm is extremely unpopular, and right now CTU polls pretty high in the City.
Comment by Molly Maguire Wednesday, Aug 10, 16 @ 11:59 am
–Union leaders have long said ending the pension pickup could be cause for a strike.–
That says a lot right there. If pensions aren’t a big enough problem, the CTU doesn’t even want to help pay for the enormousness problem that they reap platinum status benefits from.
Comment by Ahoy! Wednesday, Aug 10, 16 @ 12:01 pm
Comparing social security to a CPS pension with a 3 percent compunded increase every year is like comparing watermelons with grapes- they are both fruit. The similarity ends there.
Asking the employees to pick up more of the employee share of the pension contribution is very reasonable
Comment by Lucky Pierre Wednesday, Aug 10, 16 @ 12:03 pm
@Anonymous 11:55 ==DuPage, CPS pays the employer portion of the normal cost of the pension, which is more than 6.5% SS tax. They also pay a significant portion of the employee contribution.==
I read the CPS pension money wasn’t actually paid for the last decade or so, the pension tax money in Chicago was spent on other things.
Comment by DuPage Wednesday, Aug 10, 16 @ 12:10 pm
Responsa: actually there’s some research on this: class size seems to have a meaningful effect in the lower grades. More ambiguous in the higher.
Comment by lake county democrat Wednesday, Aug 10, 16 @ 12:22 pm
So whats the median teacher salary and benefit pkg? and how does that compare to LA, NY, And other large cities.
Education is party of the key to pulling people out of poverty and off social well fare. is there really lots of fat here or is this the general myth that govt operatiins need cut to reduce taxes, and actual consequences should be ignored? im not saying thats the case, but education can help or hurt us in the long run so i would look carefully before sacrificing it.
Do we really want to combat “collectivism” by reducing education levels
Comment by Ghost Wednesday, Aug 10, 16 @ 12:26 pm
==lake county democrat - Wednesday, Aug 10, 16 @ 12:22 pm:==
You may be right. I’d certainly want to see the “research”, it’s length, and who paid for it. Regardless, positing the horrors of a 40 pupil class size is very weak tea for the union (or others) to push when there is no money and folks are trying to just keep the schools open.
Comment by Responsa Wednesday, Aug 10, 16 @ 12:31 pm
Don’t want to hear it from CTU. They’ve had a good ride in salaries, pensions and benefits. Time to make some real sacrifice or jobs going away. Either they’re all in it together or they’re going to watch their friends get laid off.
Comment by DuPage Bard Wednesday, Aug 10, 16 @ 12:46 pm
Ghost,
Average CPS teacher salary 75 K. For 10 months work (Holidays included).
Comment by Informed Observer Wednesday, Aug 10, 16 @ 1:23 pm
==Average CPS teacher salary 75 K. For 10 months work (Holidays included).==
I know there’s a point in there somewhere.
I always ask people who make these sorts of comments what salary they think should be paid. And your answer is?
Comment by Demoralized Wednesday, Aug 10, 16 @ 1:30 pm
Demoralized,
If your company can’t meet the budget, do you get a raise? If your company is firing thousands, do the others remaining get a raise?
Here’s how this will play out though - teachers will demand more money. Parents will demand they pay it. CPS will give the raise and fire teachers. Parents will complain about taxes being increased and they will complain about increased class size.
Nobody in this city ever learns. We keep doing the same thing over and over.
As a result, next year I’m pulling my kids from CPS and heading back to a private school.
Comment by Gooner Wednesday, Aug 10, 16 @ 1:40 pm
Gooner:
That’s not what I said. I simply asked someone what salary they think they should make. That’s all.
I understand perfectly what you are saying and think you have played out what the game will look like pretty well. No matter what happens it won’t be pretty.
Comment by Demoralized Wednesday, Aug 10, 16 @ 1:47 pm
It doesn’t matter what part of their pension teachers have to pay. It’s all part of total compensation. Put a number on the benefits, add it to salary, and what do you get. That’s what Chicagoans should be discussing. Is total compensation in line with what Chicagoans want for their city’s schools and, also, how much can they afford to pay for it. And who pays. Plenty of wealth in Chicago, Karen Lewis is right on that, but seems to be hard to access.
I might add that I have no idea what any of these numbers are. But if I lived in Chicago, I wouldn’t be assuming the rest of the state would bail me out. I wouldn’t expect pension “reform” to bail me out either.
Comment by Cassandra Wednesday, Aug 10, 16 @ 1:51 pm
Where would a CPS teacher go to make more money than the offer that is on the table?
Very few school districts in America have a pay and benefits package that is comparable.
Comment by Lucky Pierre Wednesday, Aug 10, 16 @ 2:14 pm
Lewis at one point proposed no increases for the life of contract. If that was the deal after the three year term- CPS would essentially recoup the 7 percent pension pick- up. Seems like a deal could be made here
Comment by Sue Wednesday, Aug 10, 16 @ 2:32 pm
Please explain your characterization of Rahm’s TIF plan as “reasonable.” Obviously it’s much more effective for Rahm to create a strawman of greedy public employees than it is for him to fess up about the enormous amount of money being diverted into TIFs. Money which should be going to pay for pensions and other essential city services instead of corporate welfare.
Comment by Anonymous Wednesday, Aug 10, 16 @ 2:33 pm
===So whats the median teacher salary and benefit pkg?===
I checked the Illinois State Board of Education report card database. The average teacher salary is about $62K for Illinois as a whole and in Chicago SD 299 it is about 68K,
===Where would a CPS teacher go to make more money than the offer that is on the table?===
I checked a few school districts that I remember always are at or near the top of the average salary tables. The ISBE report card database lists the average salary for four high paying districts as: Main HSD 207 $109K, Fenton CHSD 100 $106K, Township HSD 211 $85K, and Township HSD 214 $98K. The last time I checked (several years ago), the highest paid individual teacher in Illinois was paid about $375K. There appear to be a number of places that a CPS teacher could go to find a larger pay packet.
Comment by Small town taxpayer Wednesday, Aug 10, 16 @ 4:01 pm
@Cassandra 1:51pm
+1 ! It’s amazing how many don’t grasp this fact. Anyone who has ever run a payroll should certainly understand.
It has also been common for a “raise” to be forgone in exchange for a richer benefit, such as a pension pick up. Of course when that pick up was never put into the pension kitty …
Comment by Hieronymus Wednesday, Aug 10, 16 @ 4:12 pm
A 375K teacher? Sure it’s not a Superintendent?
Comment by Wishful Thinking Wednesday, Aug 10, 16 @ 4:17 pm
Ramp up the % of the pension participation over 4 years….If they walk it will only last a week or two, when teachers miss a paycheck they will come on in like milk cows to the barn at sunset.
Comment by Anonymous Wednesday, Aug 10, 16 @ 4:18 pm
Since the taxpayers are also paying for a portion of civil servants’ health insurance and pensions, it’s the total compensation that taxpayers need to be looking at. A salary of $106k plus the value of benefits would put total compensation at, what, ballpark $136,000. I’m guessing, but I’m sure there is a standard way of computing this.
My point, again, is that pensions are not a special perk. They are not going away either, but we need to consider total compensation in deciding what we can afford to pay teachers and other civil servants, because the money-all the money- comes from taxpayers, not trees. And whatever we decide, which of us should pay how much. The talk about fixing the pensions is a distraction. If you cut their pensions, you are cutting compensation. Is that right? I don’t know.
Can Chicagoans afford the system they have? Probably. Do they want to? I don’t know. But, as I said above, they shouldn’t expect a rescue squad from elsewhere. Except for the, say, 5 percent, we’re all on a budget out here.
Comment by Cassandra Wednesday, Aug 10, 16 @ 4:33 pm
The pension pick-up was negotiated in lieu of other compensation - a raise, probably.
So, in order to unwind this, the raise would have to be restored. Otherwise, it’s a pay cut.
Comment by TinyDancer(FKA Sue) Wednesday, Aug 10, 16 @ 5:35 pm
===- Anonymous - Wednesday, Aug 10, 16 @ 11:55 am:
DuPage, CPS pays the employer portion of the normal cost of the pension, which is more than 6.5% SS tax. They also pay a significant portion of the employee contribution.===
Private employers and non-TRS employers at the state level pay the employer SS tax (6.2%) and the employer portion of the normal cost of the pension.
Comment by justacitizen Wednesday, Aug 10, 16 @ 9:29 pm