Capitol - Your Illinois News Radar » Today’s number: 1.1 percent
SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
To subscribe to Capitol Fax, click here.
Today’s number: 1.1 percent

Thursday, Aug 27, 2015

* From the Tribune

Mayor Rahm Emanuel’s school board on Wednesday unanimously approved a budget that relies heavily on borrowed money and the hope of a nearly $500 million bailout from a stalemated Springfield, with the specter of disruptive cuts in January if that help fails to materialize.

The $5.7 billion spending plan contains another property tax hike — an estimated $19-a-year increase for the owner of a $250,000 home — as well as teacher and staff layoffs. The Chicago Board of Education also prepared to go to Wall Street to issue $1 billion in bonds and agreed to spend $475,000 so an accounting firm can monitor a cash flow problem so acute that Chicago Public Schools mulled skipping a massive teacher pension payment at the end of June. […]

Expenses in the operating budget are projected to be about $64 million lower compared to last year, CPS officials said. Earlier this year, the district said it was making $200 million in budget cuts that included the elimination of about 1,400 jobs.

To explain both our headline and the added emphasis, that $64 million reduction is just 1.123 percent of a $5.7 billion spending plan.

Not much of a cut, if you ask me, and certainly not enough to win any respect at the Statehouse.

- Posted by Rich Miller        

  1. - Team Sleep - Thursday, Aug 27, 15 @ 9:34 am:

    I’m not going to beat the drum, but do CPS officials think they can just “persuade” Springfield to give them cash with no structural changes or budgetary overall plans?! I assume they want the money for free. That was always my issue with bailing out East St. Louis schools. I had no problem with helping them out, but I always grated when they refused to do anything differently.

  2. - Shemp - Thursday, Aug 27, 15 @ 9:50 am:

    And $19 on a $250,000 house ($1.59/mo) isn’t exactly doing anything to help yourself before asking for outside help.

  3. - Wordslinger - Thursday, Aug 27, 15 @ 9:52 am:

    Mayor Gravitas has a lapdog city council and school board. He was just re-elected.

    Yet with dictatorial powers and no election in sight, he’s still too scared to do any heavy lifting.

  4. - walker - Thursday, Aug 27, 15 @ 10:03 am:

    “borrowed money and hope”

    Yeah. That always works!

    Cut more and tax more.

  5. - lake county democrat - Thursday, Aug 27, 15 @ 10:06 am:

    Grab the tinfoil: if you believe as I do that Rauner and Rahm are in cahoots, then it makes sense that CPS would stay as heavily dependent on Rauner as possible, as it gives Rauner a bargaining chip after he gave a way a lot of them already. “Sure, we can help CPS, just put it on the table with the turnaround agenda.” The state may indeed require more cuts, but I don’t see this as a “clean” negotiation or even the primary negotiation. It’s not how much CPS cuts, it’s how much Rauner can limit unions and such.

  6. - DuPage - Thursday, Aug 27, 15 @ 10:13 am:

    They need to let Chicago residents vote on a referendum to increase their own tax rate for the schools. That’s what the suburbs have done, many times.

  7. - 47th Ward - Thursday, Aug 27, 15 @ 10:15 am:

    I’m not a budget guru like Donna Arduin, but my layman’s read of the CPS budget book (which may or may not be classified as fiction), tells me the $64 million in cuts is net of new pension costs.

    In other words, CPS cut more than $100 million from the FY16 operating (non-classroom) budget, but its pension payment increased by roughly $36 million. It reminds me of the carpenter who said, “I keep cutting and cutting but this board is still too short.”

    Anybody think a referendum on hiking the CPS property tax levy above the limit of the tax caps would pass? Anybody? Bueller?

  8. - Harry - Thursday, Aug 27, 15 @ 10:21 am:

    I think the $19 is all that PTELL allows CPS to raise. Chicago could do something, but we know the story there.

    DuPage is right, they could do a referendum. But, they won’t.

  9. - King Maker - Thursday, Aug 27, 15 @ 10:40 am:

    I own an start up accounting firm. Pick me!!!
    Just joking. Some things never change. Got to love Chicago &IL

  10. - Cassandra - Thursday, Aug 27, 15 @ 10:42 am:

    Isn’t there a bigger property tax on the table, for the city government, separate from the schools. Not a sure thing though, as Mayor Rahm is hoping to keep it down or avoid it through “help” from the state.

    Those taxes are mounting up already. Preckwinkle’s sales tax increase. Mayor Rahm’s property tax increase for schools. Maybe another Mayor Rahm tax for the city. And the big one-the state income tax increase Madigan and Rauner are preparing to launch as soon as they finish their current enemies dance. All these taxes won’t affect the one percent,or even the ten percent, but for us regular folks, Xmas could be slimmer this year. Not to mention our retirement savings and college funds going forward.

  11. - Precinct Captain - Thursday, Aug 27, 15 @ 11:12 am:

    ==- Wordslinger - Thursday, Aug 27, 15 @ 9:52 am:==

    Vallas is suggesting the School Finance Authority come back. Since Mayor Gravitas and his Expert Budgeeters cannot do the heavy lift, maybe someone else should.

  12. - jeffinginchicago - Thursday, Aug 27, 15 @ 11:48 am:

    There are 2 ways to do a property tax hike. One is to raise the tax rate. The other is to raise assessed value. My assessed value just went up by 15% after appeal. My overall property taxes are going up over $1000 next year. ~$500 of that should be going to CPS.

  13. - Juice - Thursday, Aug 27, 15 @ 1:45 pm:

    Jeffinchicago, neither of those are ways to do a property tax hike. In Illinois, what gets levied is the actual dollar amount that a unit of government says they need to collect. How much CPS can ask for absent a referendum is capped at the rate of inflation. If the value of all existing properties in the City of Chicago go up by a similar amount, the tax rate drops, because CPS is limited by how much more they can collect by the rate of inflation. And if your tax bill is going up because your assessed value is up, CPS doesn’t get the benefit of that, some other taxpayer will be paying less. So they thank you.

  14. - Formerly Known As... - Thursday, Aug 27, 15 @ 2:12 pm:

    ==compared to last year==

    Last year was a distortion.

    They used 14 months of revenue to balance the budget for their 12 month school fiscal year.

  15. - Formerly Known As... - Thursday, Aug 27, 15 @ 2:30 pm:

    ==Not much of a cut==

    The bottom graphic shows CPS proposes spending $29 mill MORE in 2016 than their 2015 projected expenditures cost, and $206 mill more than 2014.

  16. - anon. - Thursday, Aug 27, 15 @ 2:48 pm:

    The state will help. Wish in one hand and s**t (defecate) in the other - see which fills up the quickest.

Sorry, comments for this post are now closed.

* ILGOP pledges to "continue to oppose taxpayer funding of abortion"
* The Madigan PR campaign continues
* Climate change denier warns of mob violence if renewable energy is expanded
* Pritzker, Frerichs announce loan program for furloughed federal workers
* Today's quotable
* A twofer for Preckwinkle
* SUBSCRIBERS ONLY - Update to this morning's edition
* Question of the day
* First Class all the way
* Manteno Veterans' Home tests show "low levels of Legionellosis"
* Pritzker signs EO committing Illinois to Paris Climate Agreement
* The Dome is leaking
* It's Time To Put Our Progressive Values Into Action
* More on Pritzker's HB40 EO
* Yeah, that'll work well
* Report: Ald. Solis recorded conversations with Ald. Burke
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Yesterday's stories

Visit our advertisers...








Main Menu
Pundit rankings
Subscriber Content
Blagojevich Trial
Updated Posts

January 2019
December 2018
November 2018
October 2018
September 2018
August 2018
July 2018
June 2018
May 2018
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
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

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