Capitol Fax.com - Your Illinois News Radar » Can CPS avoid closing early?
SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Can CPS avoid closing early?

Friday, Apr 21, 2017

* WBEZ’s Sarah Karp and Becky Vevea take a look today at how CPS could avoid closing classrooms early this June.

The district is suing the state for more money, but lawsuits are always iffy propositions. It probably can’t borrow the money because it’s pretty much locked out of the markets and borrowing would simply push the problem onto next year. It can’t really delay the coming pension payment, either.

* So, what about TIF money?

Here’s the rub: TIF surpluses are not available at this point in the fiscal year, mainly because the city can’t surplus money it doesn’t yet have. The next infusion of property tax revenue will be in August, said Tatia Gibbons of the Cook County Clerk’s office.

And August is too late to make that $215 million pension payment by June 30th.

It could cancel construction projects that use TIF money. But it’s unclear how much that would free up by reading the article.

* It could also cut its budget and/or move money around

Its current deficit amounts to just about 2 percent of its $5.4 billion operating budget. It also has a $1.5 billion line of credit.

CPS says its line of credit is being fully used, though the district still may be able to borrow more money in the short term or shift funds around and hold tight until its next infusion of property tax money in August. […]

The district refuses to say how much money it has on hand, what bills for this year are outstanding and whether it has any wiggle room when it comes to using its line of credit to manage cash flow.

CPS officials said cash flow information is not revealed for “market reasons,” offering only that CPS’ cash flow situation is precarious.

They need to open the books. Stat.

- Posted by Rich Miller        

31 Comments
  1. - Red Ranger - Friday, Apr 21, 17 @ 12:07 pm:

    This may be the most dangerous game of chicken CPS has ever played. The entire CPS strategy has been to dare Springfield not to bail them out. They havent done a thing to make it easier for a suburban or downstate legislator to give them more money at a time like this. If they “magically” find a way not to close on June 1 absent some sort of deal, it will make it even more difficult for non-Chicago legislators to ever take CPS threats seriously again. I think CPS is way over their skis with this threat, and when they find that extra money under a couch cushion to keep the schools open they will do serious long term damage to themselves in Springfield.


  2. - Lucky Pierre - Friday, Apr 21, 17 @ 12:27 pm:

    What do the leaders of the House and Senate who are both Chicago Democrats have to say about the matter? Alderman have weighed in, but the other Chicago state legislators are as quiet as a mouse.

    These two now claim to be back benchers who had no role in this “racist school funding formula” pushed by Chicago democrats.

    There is a deal is still on the table to get the extra pension funds.

    Both afraid to address the media until after the court decision. Real leadership.


  3. - Deft Wing - Friday, Apr 21, 17 @ 12:50 pm:

    City & CPS may want to look into Chapter 9 relief for CPS. It’s already insolvent and that’s before its upcoming big pension payment of June 30 it cannot make.


  4. - weltschmerz - Friday, Apr 21, 17 @ 12:54 pm:

    This can’t be happening on Rahm’s watch. He’s a financial genius, who has made millions from his business acumen.


  5. - Texas Red - Friday, Apr 21, 17 @ 1:06 pm:

    kids will likely not meet the ISBE required 180 class days. Will they allow current seniors to
    graduate ? will Universities or Scholarship programs accept them ?


  6. - A guy - Friday, Apr 21, 17 @ 1:07 pm:

    ==They need to open the books. Stat.===

    Yep.


  7. - Cannon649 - Friday, Apr 21, 17 @ 1:09 pm:

    i feel for the parents and kids, however this has been coming for years - “Kick the Can” financing needs to end.

    Yes, Receivership in the future for the many of the insolvent operations of the state. None of the egos involved can solve the problem.


  8. - Peters Post - Friday, Apr 21, 17 @ 1:09 pm:

    While I agree with “open the books” this is more likely to cast more shadow than light. What “the books” will reveal will be subject many multiple interpretations. Completely reject the idea that this is a bailout. It simply repairs an agreement that was vetoed out of spite by the Governor. Also agree that legislators leaders, Chicago and downstate need to take a stand to fund education.


  9. - old pol - Friday, Apr 21, 17 @ 1:11 pm:

    Rahm/Forrest - File bankruptcy already!!! Rauner is giving you all the cover you could ever wish for.
    Shed the legacy costs and start over on teacher pay scale.
    Drop seniority pay. A 20 year Kindergarten teacher need make no more than a 2 year K teacher.
    Pay should increase based on level of teaching, not years of service.


  10. - Bond Buyer - Friday, Apr 21, 17 @ 1:29 pm:

    =They need to open the books. Stat.=

    They are open. A Big Eight firm audits the books every year and the audit is publicly available. So are all their legal bond sale disclosures, in excruciating financial detail, from last year. The budget and all the revenue and expenditures is online.

    What’s not available, or obvious, is CPS’s cash position, because it constantly changes. Big question is how much cash they have left, if any. We know they’ve maxed out the short term line of credit and got boxed out of the long-term bond market late last year.


  11. - JS Mill - Friday, Apr 21, 17 @ 1:42 pm:

    =The district refuses to say how much money it has on hand, what bills for this year are outstanding and whether it has any wiggle room when it comes to using its line of credit to manage cash flow.

    CPS officials said cash flow information is not revealed for “market reasons,” offering only that CPS’ cash flow situation is precarious.=

    This is public information not subject to any of the FOIA exemptions. Refusing to release current info is a FOIA violation.

    Period.


  12. - JS Mill - Friday, Apr 21, 17 @ 1:44 pm:

    =Pay should increase based on level of teaching, not years of service.=

    If only the private sector worked that way. Maybe they can get $25 million to get fired?


  13. - anon2 - Friday, Apr 21, 17 @ 2:00 pm:

    === Drop seniority pay. A 20 year Kindergarten teacher need make no more than a 2 year K teacher.===

    What a surefire method to attract the best and the brightest into teaching! Keep in mind that the most significant school-related factor in student achievement is the quality of the teacher.


  14. - Anonymous - Friday, Apr 21, 17 @ 2:11 pm:

    ===cash flow information is not revealed for “market reasons,”===

    LOL! I’d like to see them try and use that as a legal argument for withholding public information.


  15. - Ron - Friday, Apr 21, 17 @ 2:24 pm:

    What a surefire method to attract the best and the brightest into teaching! Keep in mind that the most significant school-related factor in student achievement is the quality of the teacher.”

    Huh? Parents are the single most signifcant factor.


  16. - Lawyer Guy - Friday, Apr 21, 17 @ 2:25 pm:

    In fairness, CPS asked for an evidentiary hearing to lay all this out in court under oath. Both the State and the judge rejected the need. The state cedes the facts. Its up to the judge on the law now.


  17. - Ron - Friday, Apr 21, 17 @ 2:25 pm:

    Lucky Pierre, Madigan and Cullerton don’t care. There are unionized public workforces to protect.


  18. - TD - Friday, Apr 21, 17 @ 2:28 pm:

    CPS is elegible under state law to issue tax warrants, which is a loan from a bank with future tax receipts as collateral.


  19. - Ron - Friday, Apr 21, 17 @ 2:30 pm:

    TD, yeah! CPS needs more debt!


  20. - cdog - Friday, Apr 21, 17 @ 2:33 pm:

    I think we have some rogue public employees here. As JS Mill says any FOIA should be honored.

    Bond Buyer leans on audit reasoning. Audits are samples and many times auditors miss the truth. Nix that avenue to any level of confidence. Source documents needed; end of subject. (insert Mautino joke)

    I sure learned some things here.

    CPS has $6 BILLION in revenue
    and interestingly, a $5.5BILLION budget

    380,000 students, and 36,000 employees.

    That’s ONE EMPLOYEE for every 10.5 students!

    Good heavens. What the heck is going in that city?

    http://www.cps.edu/About_CPS/At-a-glance/Pages/Stats_and_facts.aspx

    http://cps.edu/fy17budget/Pages/revenue.aspx


  21. - old pol - Friday, Apr 21, 17 @ 2:42 pm:

    Years of service does not equal quality.


  22. - Ron - Friday, Apr 21, 17 @ 2:45 pm:

    Old pol, come on, don’t inject reason into this! We have public employees to protect!


  23. - Carhartt Representative - Friday, Apr 21, 17 @ 2:45 pm:

    A lot of these financial projects go back to Mayor Daley and Renaissance 2010, but Rahm has only made it worse.

    https://www.roosevelt.edu/~/media/Files/pdfs/news/Closed-By-Choice.ashx?la=en


  24. - Ron - Friday, Apr 21, 17 @ 2:50 pm:

    CPS can layoff about 5,000 employees and provide the same level of service it has today. It’s administrative costs are outrageous, though oddly more rational than other Illinois school districts.


  25. - Carhartt Representative - Friday, Apr 21, 17 @ 2:51 pm:

    =- old pol - Friday, Apr 21, 17 @ 2:42 pm:

    Years of service does not equal quality.=

    Of course not. So if I have a company and I promise to pay employees $30,000 a year and my competitor promises to pay them $30,000 a year with yearly raises up to $80,000 for the same job, I wonder where they will go to work.

    As for experience not producing better teachers, the research says you’re wrong.

    http://www.edweek.org/ew/articles/2015/03/25/new-studies-find-that-for-teachers-experience.html


  26. - Ron - Friday, Apr 21, 17 @ 3:00 pm:

    CPS lost 10,000 students last year. Time to cut some payroll.


  27. - Carhartt Representative - Friday, Apr 21, 17 @ 3:15 pm:

    =CPS lost 10,000 students last year. Time to cut some payroll.=

    Or maybe start by stop creating new schools


  28. - Jose Abreu's last homer - Friday, Apr 21, 17 @ 3:26 pm:

    Remember, when hiring “the best” teachers, they can only live in Chicago. Those dreaded teachers outside of the city can’t be considered. GO BACK TO SCHAUMBURG is the rally cry from my fellow city dwellers.


  29. - Ron - Friday, Apr 21, 17 @ 3:30 pm:

    I agree, CPS should also close another 50 schools and the associated payroll.


  30. - Usedtabe - Friday, Apr 21, 17 @ 3:46 pm:

    Bankruptcy declarations by governmental entities in Illinois are prohibited by law. CPS is one such.


  31. - Ron - Friday, Apr 21, 17 @ 4:47 pm:

    Usedtabe, another fine example of Illinois’ terrible governance.


Sorry, comments for this post are now closed.


* Reader comments closed until Tuesday
* Rauner complains it's "hard to overcome" the "biased" Illinois media
* Question of the day: Golden Horseshoe Awards
* Rate Pritzker's new digital ad
* Recent endorsements: Raoul, Biss, Newman, Villivalam
* Joe Berrios' new radio ad features Jesse White, more attacks on Kaegi
* A make-work program for property tax appeals lawyers?
* Rauner tax hike claim ruled "Mostly False"
* Lawsuits expose more problems at Quincy veterans' home
* Could a Moody's methodology change push Illinois into junk status?
* Republicans get into the "holiday spirit"
* Jesse White's GOP opponent: "I'm extremely ordinary"
* Friday open thread
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............
<


Loading


* Morning Spin: Mendoza says Rauner can't take cr.....
* Miller: Rauner might never be in charge - Quad .....


* Metra to modify train schedules during holiday season
* Chicago-area teen accused of pointing replica gun at cars
* New Bitcoin-based security bounces in trading debut on CME
* The Latest: Electricity fully restored at Atlanta airport
* Chicago taking proposals for reuse of historic city bridge
* No more valedictorian, class ranks at Kankakee High School
* Police: Illinois man dies after crashing ATV in New Mexico
* 14 millionth book for U of I library is professor's work
* Iowa homeless shelter sees high demand for beds
* Police in Illinois will begin roadside drug tests

* State paying Medicaid bills before interest piles up
* Food stamps cut to tens of thousands in Illinois
* Statehouse Insider: Holiday cheer from Rauner to Madigan
* Lawmaker's daughter gets probation in political rival attack
* Gov. Rauner unveils Bicentennial Pepsi can
* Video gambling numbers level off in Springfield
* Judge: Video gambling profits must be split with operators
* Under the Dome Podcast: "Objection! (to nominating petitions), Pritzker endorsements
* Schoenburg: Jones leads fundraising in 13th Democratic primary
* Governor candidates want action on Legionnaire’s outbreak at veterans home

* Like our roundup? Share it around.
* Chicago lawyers: not a diverse lot
* A legal setback for Jimmy John's in wage-theft case
* A health setback for Hunter Harrison punishes CSX stock


* Holiday travel chaos ahead after Atlanta airport outage
* Owl, hawk vs squirrel, 87th St. slip memories: Notes, Chicago outdoors
* Mario Batali gives holiday recipe in same email as misconduct apology
* Doug Jones: Trump shouldn’t resign over misconduct allegations
* Man’s buttocks bruised when bullet hits wallet in East Garfield Park
* Man shot during attempted robbery in South Shore
* 2 men wounded in Humboldt Park drive-by shooting
* Armed home invaders near O’Hare get gun wrestled away, 1 possibly shot
* Man wounded in Washington Park shooting
* Georgia Nicols horoscopes for Dec. 18, 2017


* Morning Spin: Mendoza says Rauner can't take criticism 'from a 5-foot-3 woman from Chicago'
* LINDA C. BLACK HOROSCOPES for 12/18/17
* Man wrestles gun away from attacker, possibly shoots him in home invasion on Northwest Side
* Carolina Panthers owner Jerry Richardson to sell team amid workplace misconduct investigation
* Power fully restored at Atlanta airport after outage grounded more than 1,000 flights
* Homeless man beaten to death at site of his former home, friend says
* Putin called Trump to thank him for CIA tip that helped thwart bombings in Russia
* Trump says he won't fire Mueller as campaign to discredit Russia probe heats up
* Film session: O-line had rough day and Bears can’t win when they can’t run
* LeBron wears 1 black shoe, 1 white shoe, speaks about Trump


» Is It Too Soon To Pass Sexual Harassment Policies? Some Legislators Think So
» Chicago High Schools Compete Against Each Other — For Students
» State Week: Why Are People Still Dying From Legionnaires At Illinois Veterans Home?
» Top Three Challenges For Homegrown Star Taking Over Chicago Schools
» Illinois Women Tell Their #Metoo Stories
» Illinois Issues: A Personal Story
» Key Question For Democrats: To Billionaire, Or Not To Billionaire?
» Pritzker To Be First On Primary Ballot
» 3 Years, 13 Legionnaires’ Deaths At Illinois Veterans’ Home
» Protesters Disrupt Meeting, Call For Palos Trustee To Quit Over ‘Racist’ Comments


* George Will: Whirlpool has Washington in a spin cycle
* State paying Medicaid bills before interest piles up
* Andy Shaw: Is Illinois ready to attack bureaucratic bloat and save money?
* UIS Perspectives: Educating leaders in education
* Food stamps cut to tens of thousands in Illinois
* Our View: City should enlist public input in cuts
* Statehouse Insider: Holiday cheer from Rauner to Madigan
* Schoenburg: Bernie-backing Gronemeyer vs. Clinton delegate Mazzotti for Dem post
* Lawmaker's daughter gets probation in political rival attack
* Scott Reeder: Assaults should never be swept under the rug


* Rick's Six: Fog early, road work, shooting, controlled burns and new contest clue
* Ameren picks route options for north expansion
* Europe topic of ISU spring seminar series
* Start the Week Off Right: Maintain a healthy lifestyle during the holidays
* Holiday gift (and selfie) hunt
* One hospitalized after single-car crash that knocked down power lines in Belleville
* One hospitalized after single car crash in Belleville
* East Moline police investigate shooting
* Competition challenges gamers to create a model Modern Woodmen Park
* Longtime state representative officially steps down


* Cowboys edge Raiders 20-17 by slimmest of margins
* Giordano, Bennett lead Flames to 6-1 win over Canucks
* Dawn Patrol: Teen accused of pointing toy rifle at traffic is detained
* Power fully restored at Atlanta's international airport
* Haula's go-ahead goal in 3rd leads Vegas past Panthers

* This RSS feed URL is deprecated
* High school football: Randy Hultgren lauds...
* Suburban Democrats line up to challenge Ro...
* Kendall GOP chief to challenge Kinzinger i...
* Strong early filing for Illinois attorney ...
* Letter to the editor: Hultgren should oppo...
* Tax cuts for Scrooge McDuck? Dispelling my...
* Letter: Protect our internet from fascism ...
* Efforts continue to have Warrenville Post ...
* Editorial: Roskam gets gun vote right, Hul...

* This RSS feed URL is deprecated...

* This RSS feed URL is deprecated...

* Investigation: Emanuel's Chicago Infrastructure Trust has cost taxpayers $5 million but has contributed little, and other news
* Let’s not presume that Trump and his political ilk are beaten quite yet
* Bling for the budget- and design-conscious
* Standing on the shoulders of ancestors.
* Sketchbook.
* Whenever the fight for democracy reaches a crossroads, look south.
* Sunday, Sunday.
* Rahm on Colbert.
* Sketchbook.
* A Black friend and a Jew lawyer.


* Illinois Awarded Funds to Offer Advanced Training on Detecting Impaired Driving
* Illinois EPA Announces Upcoming Household Hazardous Waste Collection Events
* IEMA Highlights Emergency Preparedness for People with Access and Functional Needs in May - Ready Illinois website offers preparedness tips for people, caregivers
* First Lady Launches Illinois Family Connects
* Governor and Lt. Governor Unveil 2016 Journal of Local Government Shared Service Best Practices

  
* Bloomberg report lends further credence to Samsung Galaxy S9 February announcement
* There’s still time to bring the Oculus Rift home for the holidays at a discounted price
* Purported Sony H8216 specs could foreshadow Xperia XZ1 sequel with Snapdragon 845
* Samsung Market Share Slipping and the Post Net Neutrality World | #PNWeekly 283
* HQ Smashed Its All-Time Player Record Tonight as iPhone Trivia Show Continues to Surge in Popularity
* Play the best strategy game in the world — now 50% off
* BlackBerry nixes security support for the PRIV after two years

* Lull in Manny Machado rumors, but plates shift underneath
* Sporcle Saturday: The richest free agent deals in White Sox history
* Former White Sox players return to rep team
* White Sox news that doesn’t involve Manny Machado
* Former White Sox players return to rep team
* The cracks in the White Sox-Manny Machado rumors
* Hahn mum on any White Sox-Machado talks


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
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

Syndication

RSS Feed 2.0
Comments RSS 2.0
WordPress




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