AG Madigan to Rauner: No
Monday, Apr 4, 2016 - Posted by Rich Miller
* No surprise because the law is pretty clear…
Gov. Bruce Rauner’s attempts to give the Illinois Board of Education greater control over Chicago Public Schools hit a potential snag [last] week, with the state’s chief legal officer saying the board has no authority to interfere with CPS borrowing money.
“Specifically, the plain and unambiguous language … of the [Illinois] School Code draws a distinction between CPS and other school districts when it sets forth the state board’s powers to assist school districts in financial difficulties,” Illinois Attorney General Lisa Madigan wrote in an opinion dated Thursday. […]
The state board can investigate the financial state of any school district in the state, including CPS. But rules requiring Illinois school districts to get state approval before taking on debt don’t apply to CPS, Madigan wrote.
“As a result, the state board may not preclude the Chicago Board [of Education] from establishing a line of credit unless the School Code is amended to grant the state board this authority,” Madigan wrote.
* Tribune…
The state has broad authority to approve budget plans of troubled districts outside of Chicago, including the ability to block borrowing. But when it comes to CPS, the state’s role after determining the district is in financial difficulty is only to “notify the governor and the mayor,” according to Madigan’s reading of the law. […]
In February, Chicago Public Schools borrowed $725 million to cover debt payments and construction projects, but it came with extraordinarily high interest rates — which Emanuel has blamed, in part, on Rauner’s talk of a state takeover.
State Board of Education spokeswoman Laine Evans said late Friday that the agency “will continue to review all of its options.”
The full opinion is here.
- Norseman - Monday, Apr 4, 16 @ 2:39 pm:
“Egads, a Madigan spoils another one of my power plays.” Faux Rauner
- Facts are Stubborn Things - Monday, Apr 4, 16 @ 2:39 pm:
I am pleased that the AG has learned how to read “plain and unambiguous language”!
- Oswego Willy - Monday, Apr 4, 16 @ 2:50 pm:
Welp, I’ll have to figure out another way to destroy Chicago school. Until then, I’ll bad mouth them so badly that the bonds cost so much more. Simple” - Fake Bruce Rauner
- burbanite - Monday, Apr 4, 16 @ 2:54 pm:
“I may not be able to preclude it but I sure can make it pricey for them!” fake Gov. Rauner
- 47th Ward - Monday, Apr 4, 16 @ 2:55 pm:
Seinfeld had “Newman!” Rauner has “Madigan!”
- Tone - Monday, Apr 4, 16 @ 3:01 pm:
We can joke about Rauner, but it doesn’t change the fact that he is correct, CPS is insolvent. It is facing a $1 billion operating deficit, it can’t go to the capital markets to borrow any more and it has negative net worth of over $11 billion. Bankruptcy is the best solution.
- a drop in - Monday, Apr 4, 16 @ 3:05 pm:
Madigan and her supermajority in the AG office.
- Educ - Monday, Apr 4, 16 @ 3:12 pm:
Madigan and the offspring he controls …
- The middle - Monday, Apr 4, 16 @ 3:14 pm:
You don’t need a fancy law degree to issue this no-brainer of an opinion, only a copy of the law and the reading comprehension of a 5th Grader.
The Lisa v. Rauner legal battle I’m dying to see is the one over the constitutionality of paying state workers without a budget in place. Coming soon to an appellate court near you?
- Oswego Willy - Monday, Apr 4, 16 @ 3:15 pm:
===…it can’t go to the capital markets to borrow any more and it has negative net worth of over $11 billion.===
And yet, it just did.
You’re welcome.
- Huh? - Monday, Apr 4, 16 @ 3:49 pm:
1.4% starts verbal attack on the AG in 5, 4, 3, 2, …
- DuPage Saint - Monday, Apr 4, 16 @ 4:02 pm:
If you think elections to house and senate are nasty wait till the next election for Supreme Court justice
- Dr X - Monday, Apr 4, 16 @ 5:20 pm:
Well man….that’s just like your opinion.
- wordslinger - Monday, Apr 4, 16 @ 5:59 pm:
–State Board of Education spokeswoman Laine Evans said late Friday that the agency “will continue to review all of its options.”–
Um, back in February, Gov. Rauner said you’d already done all that heavy lifting.
–“The simple fact is, the State Board of Education has the right to block any debt offerings, any bond or debt offerings. The state board has never chosen to do that for the city of Chicago. I hope it never becomes necessary, but we have to be ready to take action and step in.”–
So who didn’t do their homework, the governor, ISBE Chair Meeks, State Superintendent of Instruction Dr. Smith, Education Czar Dr. Purvis or all the many lawyers who work for them?
Maybe they should gather all their degrees and all their lawyers and meet at The Department of The Redundant Department and see if together they can decipher a couple of lines in the school code.
- Arthur Andersen - Monday, Apr 4, 16 @ 7:58 pm:
word, I’m guessing here, but you can’t rule out that all the folks you mentioned or some of them gave Rauner the facts and he uh, constructed his own legal opinion.
- wordslinger - Monday, Apr 4, 16 @ 8:00 pm:
AA, if that’s the case, curious that the governor needs two of everything, like Noah, if he’s not going to listen to any of them.
- DuPage Dave - Monday, Apr 4, 16 @ 8:36 pm:
Don’t crush that dwarf, Word.
- Mama - Monday, Apr 4, 16 @ 9:03 pm:
The One- Percent do not follow the rules. They made their own rules.
- cannon649 - Monday, Apr 4, 16 @ 9:28 pm:
There is only so much risk capital for the insolvent CPS at any interest rate.
The BK will be here sooner than we expect.