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*** UPDATED x1 - Rauner weighs in *** Who’s for a Chicago schools “bailout”?

Thursday, Feb 25, 2016 - Posted by Rich Miller

*** UPDATE *** As expected, the governor talked about this issue today in the Metro East

[ *** End Of Update *** ]

* Joliet Herald-News

To the Editor:

Going door-to-door throughout my district, I often hear from parents, teachers and school staff who ask about funding for our area’s schools. I share their urgency and concern. Local schools must be properly funded by the state, and in fact, there is a lot of work to be done to better support local classrooms. For this reason, I am speaking out against a recent proposal that has the potential to significantly set back our efforts to help local schools.

Recently, Gov. Bruce Rauner has announced his support for a plan to bail out the Chicago Public Schools. This school system is in tremendous debt. To name just one of its many failures, when students were being shifted out of 50 closed schools into consolidated classrooms, CPS managed to “lose track” of tens of thousands of computers, desks and books in the transition. CPS paid $25 million to a company to handle the transition logistics. The mismanagement is appalling because I know that every dollar that Chicago wastes could make a difference in our local schools.

An Illinois bailout of Chicago Public Schools puts our students, teachers and taxpayers at risk. We simply cannot be put on the hook for Chicago’s decades of failure. Please help me speak out against this proposal by signing my petition atnochicagobailout/Cloonen or by calling my office at 815-939-1983.

Last year, I was able to help secure nearly $200 million in new school funding. I will continue to be a strong voice for reform, and I will fight to bring more attention and resources to our schools. Thank you for your help in this important effort.

Kate Cloonen

* And the very next day

To the Editor:

I read state Rep. Kate Cloonen’s letter to the editor in Wednesday’s edition of The Herald-News with great surprise. As the primary sponsor behind legislation that would have provided Chicago Public Schools with the financial flexibility, oversight and accountability to begin earning back the trust of the taxpayers, I find her assertions devoid of facts.

To be clear, Gov. Bruce Rauner has not proposed a bailout. Our proposals encompass the same mandated financial oversight and elected school board requirements that every other school in Illinois adheres to, except Chicago. In addition, given their dire financial situation, Gov. Rauner suggested allowing Chicago Public Schools to explore financial options similar to those encompassed by municipal bankruptcy.

None of these proposals would cost Illinois taxpayers a dime.

Compare this with the demands of Rep. Cloonen, Mayor Rahm Emanuel, House Speaker Michael Madigan and Senate President John Cullerton, who all now have publicly rejected the governor’s call to protect Illinois taxpayers from Chicago’s relentless demands. Cullerton went so far as to call on Illinois Democrats to hold hostage the upcoming K-12 education budget until Chicago schools receive $500 million in additional dollars, with no strings attached.

Where’s Rep. Cloonen’s call to reject Sen. Cullerton’s proposal? I highly doubt we’ll ever see it – because, at the end of the day, she stands with them in their efforts to bail out Chicago schools.

Ron Sandack

R-Downers Grove, state representative, 81st District

* But the meme is most definitely spreading

“The governor’s plan to divert resources and needed funding away from the Illinois Valley and funnel it into Chicago’s failed system is a mistake,” [Rep. Andy Skoog (D-La Salle)] explained in a release issued Thursday. “I am against Gov. Rauner’s ill-advised plan and will vote against it. The taxpayers I represent shouldn’t be on the hook for Chicago’s decades of mismanagement. […]

“At a time when the bills at the veteran’s home in La Salle are not being paid, when seniors are facing the loss of in-home care services and home-delivered meals, when my constituents with disabilities are not receiving the funding that the state has promised, and when college students are trying to figure out if they’ll be able to afford their next semester classes, the idea of asking taxpayers in my district to bailout Chicago is ridiculous.”

* And

In a response to efforts being made by Chicago politicians to bailout Chicago Public Schools, CPS, State Rep. Brandon Phelps, D-Harrisburg, said Feb. 16 that he was launching a petition drive to garner community support for his efforts to oppose any type of Chicago bailout.

“It is frustrating that as soon as Chicago cries for help because they messed up their own finances that Southern Illinois is expected to pick up the pieces and bailout them out,” Phelps said in a news release.

“The money earned by hard-working residents here in Southern Illinois should stay here and not be sent up to Chicago bureaucrats who are just trying to line their pockets.”

* And

Recently Governor Rauner announced his plan for the state to bailout the failing Chicago Public School (CPS) system, a move being criticized by state Rep. Dan Beiser, D-Alton.

“Bailing out the Chicago Public School system is a terrible idea, especially when we have so many other problems with our state budget and our schools are in need of greater investment,” said Beiser. “I have long stood against the idea of Chicago getting an automatic cut of school funding while downstate schools are hurting. I object to the governor’s idea to put local taxpayers on the hook for Chicago’s fiscal mismanagement.”

Beiser voiced his frustration that Governor Rauner is focusing on a CPS bailout, rather than addressing the budget crisis impacting all corners of the state.

The governor is in the Metro East today, so I expect he’ll be asked about this since it’s become such a bone of contention. Rauner’s legislation prohibits extra state money from going to the city, but I doubt anyone who already doesn’t like Rauner would believe that would be the end result.

* In reality, both sides are stirring up their bases with Chicago bashing to further their own causes. The tragedy is they wouldn’t be doing it if it didn’t work. But the “I hate Chicago” game has worked for generations in this state.

       

39 Comments
  1. - illini97 - Thursday, Feb 25, 16 @ 9:48 am:

    The ISBE has also demanded Edwardsville, in the Metro East, open their books. Perhaps that will come up?


  2. - Dance Band on the Titanic - Thursday, Feb 25, 16 @ 9:58 am:

    Rep. Ron Sandack? The legislator who voted against funding ALL Illinois schools last year? Talking about not holding schoolchildren hostage?

    That guy? Seriously?


  3. - wordslinger - Thursday, Feb 25, 16 @ 9:59 am:

    –In addition, given their dire financial situation, Gov. Rauner suggested allowing Chicago Public Schools to explore financial options similar to those encompassed by municipal bankruptcy.–

    What are these “financial options similar to those encompassed by municipal bankruptcy?”

    Can anyone name one?

    The governor and Sandack are pushing muni bankruptcy, period, because they think they can use it to bust unions.

    Have the courage of your convictions and spit it out, rather than making up a bunch of weasel-word nonsense.


  4. - Oswego Willy - Thursday, Feb 25, 16 @ 10:02 am:

    Why didn’t The Owl just say…

    “I’m frustrated too, but taking steps towards reforming Illinois is more important than a ’short term budget stalemate’, Rep. Cloonen.”

    I mean, Ron Sandack thinks pain in needed, no matter who gets hurt, so the “Chicago Bailout” as touted by Bruce Rauner and hooted by Rep. Sandack seems to a losing proposition for all.

    The “Chicago Bailout” by Gov. Rauner seems to be more about state control, and with no budgets in the past /fiscal years in the offing, why would anyone trust Bruce Rauner and his “Chicago Bailout”?


  5. - Ahoy! - Thursday, Feb 25, 16 @ 10:02 am:

    Never let facts get in the way of a good argument.


  6. - Juice - Thursday, Feb 25, 16 @ 10:08 am:

    Umm…last summer the Governor was 100% in favor of a variety of bailouts for CPS, including giving them a pension holiday, which he then criticized the Dems for being against, fronting them cash early, and handing over them money if it included the Governor’s typical poison pills.

    Since no one is willing to go along with him on the poison pills, his proposal is to take the district over so he cannot get a budget or a contract there, just like with the State. But let’s not kid ourselves, if he does take it over, he will absolutely be asking for more money from someone.


  7. - jim - Thursday, Feb 25, 16 @ 10:09 am:

    sounds like the Ds are just making it up.
    very clever move by Madigan.


  8. - Langhorne - Thursday, Feb 25, 16 @ 10:12 am:

    Could rauner be succeding in using chicago schools as a wedge issue? Rauner throws out his proposal, which gets criticized. But now some dems, who will eventually be “convinced” to pass some version of a state education funding plan–including chicago–are on record in opposition. Anyone who votes yes will be slammed for flip-flopping and voting to bail out chicago schools


  9. - Team Sleep - Thursday, Feb 25, 16 @ 10:18 am:

    Word - you and I are definitely in agreement on that. I wish people would say what they mean and mean what they say.


  10. - TinyDancer(FKA Sue) - Thursday, Feb 25, 16 @ 10:25 am:

    Maybe Chicago should just keep all the tax revenue generated in Chicago for itself and let the rest of the state live off their OWN tax revenues.


  11. - Chicago taxpayer - Thursday, Feb 25, 16 @ 10:25 am:

    Good to see all these “well-managed” downstate school districts decrying a Chicago “bailout.” They have all their teacher retirement benefits paid by the state. They can even dole out sweetheart deals jacking up local teacher salaries and pensions with late-career “bonuses” and then send the tab to the state.

    It’s a little harder to manage your school finances when the state reneges on its statutory commitment and hands you a bill for three-quarters of a billion dollars in pension costs–costs no one else in the state is paying.

    Try operating like Chicago when


  12. - Four to one - Thursday, Feb 25, 16 @ 10:26 am:

    Memo to Sandack: If you’re explaining, you’re losing.

    Rauner keeps popping up in the media talking about the state taking over CPS. Every single person who hears “take over” thinks “bailout.”

    While the governor is having fun busting Rahm’s chops, manna is raining down on suburban and downstate Dems.

    Ron, you won’t be able to tweet your caucus out of this pickle.


  13. - Will Caskey - Thursday, Feb 25, 16 @ 10:33 am:

    CPS needs an additional billion dollars a year. The easiest way to get there would be to simply lift its levy cap, which would cost the state nothing and continue City Hall’s practice of pretending like they know nothing about this terrible business over at CPS.

    Or the City Council could raise its own levy and transfer it over.

    Or the state can give it money, honestly who cares. This distinction of “receiving money” being a “bailout” is an extremely tedious rehash of tea party gibberish where all spending is the devil.


  14. - Just Me - Thursday, Feb 25, 16 @ 10:38 am:

    It is infuriating that Democratic leadership is asking for the State to just give CPS more cash, yet rank-and-file Democrats have the audacity to complain about the Governor’s plan which costs nothing. Oh well, that’s politics I guess, but is just another example of the dysfunction we have.


  15. - Rich Miller - Thursday, Feb 25, 16 @ 10:57 am:

    ===Or the City Council could raise its own levy and transfer it over.===

    This.


  16. - Gantt Chart - Thursday, Feb 25, 16 @ 10:58 am:

    Tiny Dancer - Well, if Cook County suddenly attained the status of a “City/State”, separate from Illinois overnight and took all of their revenue and expenses with them, a lot of down staters would cheer it. A number of regular contributors to this blog have said that without Chicago, Illinois would be like Iowa. The reason the “I hate Chicago!” meme has played so well for generations is that a lot of folks don’t think being more like Iowa is a bad thing.


  17. - Rich Miller - Thursday, Feb 25, 16 @ 10:58 am:

    ===Anyone who votes yes will be slammed for flip-flopping and voting to bail out chicago schools ===

    In both parties.

    But rest assured that none of the targets will be doing so.


  18. - Oswego Willy - Thursday, Feb 25, 16 @ 11:04 am:

    ===But rest assured that none of the targets will be doing so.===

    That’s the only thing in this that is a foregone conclusuon.

    ===Or the City Council could raise its own levy and transfer it over.===

    The most honest statement. Thanks.


  19. - wordslinger - Thursday, Feb 25, 16 @ 11:07 am:

    ===Or the City Council could raise its own levy and transfer it over.===

    This.–

    Agreed.

    There’s a difference between “can’t” and “don’t wanna.” Only loony “Chicago is Detroit” cultists can’t see that.

    That goes for Gov. Peter Francis Geraci with his bankruptcy info-tapes and Mayor Gravitas.


  20. - walker - Thursday, Feb 25, 16 @ 11:34 am:

    ==in both parties==

    yes


  21. - anon - Thursday, Feb 25, 16 @ 12:10 pm:

    ===
    === “The money earned by hard-working residents here in Southern Illinois should stay here and not be sent up to Chicago bureaucrat…”===

    OK, Brandon. Southern Illinois should get back only the tax revenue it contributes — including to the road fund — and no longer enjoy subsidies from Cook and the collar counties.


  22. - lake county democrat - Thursday, Feb 25, 16 @ 12:22 pm:

    Not that “I Hate Chicago” isn’t real, but…

    “I hate CPS”/”I hate CTU/Karen Lewis” isn’t exactly the same thing. It’s one thing to ask suburbanites to take less for their schools (or take another tax hit) for Chicago’s schools, it’s another to give it to THIS team.

    PS We’ll talk later Walker, just sit down.
    (Sorry, couldn’t resist :-) )


  23. - Anonymous - Thursday, Feb 25, 16 @ 12:29 pm:

    Chicago is absolutely, positively, “not Detroit”.
    Why? Because not enough time has passed yet, it took sixty years for the Detroit of 1950 to become the Detroit of 2010. But does Chicago, given enough stupid political decisions, overspending, over-borrowing, overtaxing, and population exodus, have the opportunity to become Detroit? I don’t know, but it’s got a darned good 20-year head start down that road.


  24. - lake county democrat - Thursday, Feb 25, 16 @ 12:32 pm:

    Not Detroit, but maybe Cleveland. You can’t just point to Chicago’s building growth and think “oh, the city can absorb it” - it’s not spread equally. If you think that middle class flight isn’t a real danger, why not bargain the right for city teachers/workers away in exchange for some concessions - doesn’t cost a cent. Existing homeowners and building owners can’t absorb endless property tax hikes just because others are building new rental units in the spiffy city center neighborhoods.


  25. - Harry - Thursday, Feb 25, 16 @ 12:36 pm:

    Yes, and what does that say about the viability of Chicago’s “strategy,” if you can call it that, to have the State provide maybe $500M/yr more funds?

    Wishful thinking is NOT a strategy.


  26. - wordslinger - Thursday, Feb 25, 16 @ 12:37 pm:

    –Not Detroit, but maybe Cleveland.–

    LOL. You say that like it’s a compliment.


  27. - Ghost - Thursday, Feb 25, 16 @ 12:42 pm:

    as an aside there is this giant assumption i hear in the background of these discussions. to wit…. that we are sendng non Chicago money to chicago….. i think what people fail to follow is that the majority of our states fundng come from the chicago area and is spent downstate. it is actually downstate that consumes more then it generates. so we are not bailing out chicago so much as talking about spendng more of the money from the chicago area on chicago


  28. - Oswego Willy - Thursday, Feb 25, 16 @ 1:22 pm:

    To the Update,

    Ugh!

    Rauner cites Cullerton, “A Democrat from Chicago, holdin’ up fundin’,…”

    The Cullerton “hostage” strategy, mirroring Rauner’s is a big, big mistake.

    “Why?”

    it almost legitimizes Rauner’s own hostages.

    Almost.

    Rauner is “right” to call this out, but he’s the wrong messenger.


  29. - Anon221 - Thursday, Feb 25, 16 @ 1:30 pm:

    Rauner’s “who’s your buddy” schtick is tiresome. “I just got here” is disingenuous and, frankly, dishonest. He repeated, once again at Belleville, that “we have the money”, but continues to fail to explain how he wants to “appropriate” the money.


  30. - Will Caskey - Thursday, Feb 25, 16 @ 2:00 pm:

    The funny thing is when it comes to CPS Rauner is absolutely within his rights to demand whatever nonsense he wants. If Rahm wants to go to Springfield with his hand out then he doesn’t get to complain when Rauner demands control of CPS or to build a million charters or whatever his latest demand is.

    Manning up and raising property taxes himself would stick it to Rauner and it’s not like Rahm’s approval can fall any lower at this point. By asking for money from the state all he’s doing is validating Rauner’s tactics.


  31. - Shemp - Thursday, Feb 25, 16 @ 2:00 pm:

    I would hope that by now, the I hate Chicago thing has validity, though the very presence of Chicago is clearly a major economic driver for the entire state. When the Statutes are littered with different sets of rules for cities “over 500,000,” that will create divisions. And because the IL senate isn’t divided like the US Senate, everyone downstate gets subjected to one-size fits all policy from a GA that is dominated by the Chicago metro area.


  32. - Rich Miller - Thursday, Feb 25, 16 @ 2:00 pm:

    Caskey +1


  33. - Keyrock - Thursday, Feb 25, 16 @ 2:09 pm:

    Caskey +2.

    Rahm should have been raising taxes 5 years ago, as part of a strategy to clean up the Daley mess. (Rahm should have been doing a lot of things 5 years ago that he didn’t do.)


  34. - To the update - Thursday, Feb 25, 16 @ 2:15 pm:

    It’s better than calling for a state takeover, but I don’t think “let them declare bankruptcy” is a winning political message for the governor either. While Rauner gets warm, fuzzy feelings when anyone utters the term, I don’t think regular folks like the idea of bankruptcy — still seems like they’ll get stuck with the bill.


  35. - Blue dog dem - Thursday, Feb 25, 16 @ 2:54 pm:

    I think the RAHN Man should impose a sin tax on Oreos and Ritz crackers sold anywhere within city limits. Nothing too big, let’s say a penny/cookie-cracker. Property taxes could therefore actually be lowered. CPS could be saved and the mayor could go down in history as the greatest innovator of all time.


  36. - Anon221 - Thursday, Feb 25, 16 @ 3:12 pm:

    Blue dog dem- Let it go, man. Let it go! I know the Oreo withdrawal is tough, but don’t let it take over your life! :)


  37. - Blue dog dem - Thursday, Feb 25, 16 @ 3:16 pm:

    But…but…. Have you ever gone through Oreo withdrawal?


  38. - burbanite - Thursday, Feb 25, 16 @ 3:30 pm:

    Does he not realize that education includes higher ed? and that these kids are the college students of tomorrow?


  39. - Liberty - Thursday, Feb 25, 16 @ 4:22 pm:

    Burbanite- Don’t worry about higher ed, once the universities collapse, we will buy back the buildings without the administrators or unions and reopen them.


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