Today’s number: $1.5 billion
Friday, Nov 1, 2019 - Posted by Rich Miller
* In this Sun-Times story about how Mayor Lightfoot’s security team barred CTU Vice President Stacy Davis Gates from participating in the final negotiations over a return to work agreement is this from CTU President Jesse Sharkey…
“One thing we learned is that Lori Lightfoot is prone to saying sort of unwise, provocative things in public, which then put her in a corner in negotiations she’s subsequently required to back out of,” Sharkey said.
“She said that class size and staffing didn’t belong in a labor contract. Class size and staffing are in a labor contract. She said that she wouldn’t put any more money into the labor contract. Well, she put a lot more money into the labor contract. She said she wouldn’t make up any school days. This is a pattern.”
And what exactly is that pattern?
“She approaches policy debates the way a prosecutor would. She makes a very strong advocacy argument. She states it in absolutist terms. And doesn’t leave herself … room to maneuver. … Experienced politicians or deal-landers don’t talk like that.”
I believe those public statements are what prompted Tribune editorial board members and their followers to swoon like teenage fans at a Taylor Swift concert. She was saying all the “right” things, but then she eventually had to cut a deal. There comes a time when strikes have to end. And she’s the mayor of Chicago, not Effingham. What might go over well there, wouldn’t go over so well in the big city.
* Now, let’s move on to Greg Hinz…
Even before she agreed to provide five paid make-up days for striking Chicago teachers, Mayor Lori Lightfoot declared her proposed contract with the Chicago Teachers Union was “the best ever.”
Now that financial details of the pact are starting to trickle out, it’s clear that the mayor was telling the truth—that is, for the teachers. And that truth raises a very significant question of whether the unprecedented, potentially $1.5 billion mayoral bet will be worth the cost to already struggling Chicago taxpayers.
That $1.5 billion figure comes from the Chicago Public Schools’ budget office. It’s at the high-range of what officials say the new CTU deal will cost over the next five years cumulatively.
Adding up salary hikes and staff additions, a slight reduction in employee contributions to their health insurance as a percentage of salary, new services to aid the homeless, a pay bump for veteran teachers and other items, the promises in the contract collectively amount to $1.5 billion, according to CPS.
Man, the Tribsters’ heads are gonna explode at that $1.5 billion number over 5 years.
* Related…
* Mayor Lori Lightfoot fires back after President Trump rips Chicago police superintendent again, accuses him of ‘perpetrating’ a crime wave from the White House
- Grandson of Man - Friday, Nov 1, 19 @ 2:53 pm:
For all the mayor’s flaws, a deal was at least cut. Imagine Rauner vs. CTU. It would be catastrophic.
- Oswego Willy - Friday, Nov 1, 19 @ 2:54 pm:
Mayor Lightfoot won… CTU lost.
This is the Mayor winning. Congratulations.
- Amalia - Friday, Nov 1, 19 @ 2:57 pm:
Honestly don’t know how Chicago continues to pay for things without cutting or raising taxes. maybe they raise taxes on CPS but that is the same taxed residents.
- A State Employee Guy - Friday, Nov 1, 19 @ 3:01 pm:
Noticeably absent here is an explanation as to why Sharkey and Bloch allowed STacey Davis Gates to be barred from the room.
- A State Employee Guy - Friday, Nov 1, 19 @ 3:02 pm:
The mayor didn’t win, but CTU definitely lost.
- 47th Ward - Friday, Nov 1, 19 @ 3:03 pm:
I thought it was a very classy move for Sharkey to make the announcement at the Mayor’s side. Wait, that didn’t happen.
Sounds like Sharkey delivered for his members, but he sure acted like a sore loser yesterday.
- Steve - Friday, Nov 1, 19 @ 3:06 pm:
- Amalia -
1600 SAT scores are now withing reach now. Those extra dollars are investments.
- Oswego Willy - Friday, Nov 1, 19 @ 3:07 pm:
=== Man, the Tribsters’ heads are gonna explode at that $1.5 billion number over 5 years.===
This is exactly why I know how rank amateur the Lightfoot Crew and the apologists are in this instance.
*The* political move was kinda like the Mayor’s statement was in Rich’s earlier post today on spin.
The amateur part comes in where there’s this need to win here.
No. Nope, no.
The cover needed here will come from the explosion of the minds at the Trib Edit Board. Losing gives Lightfoot some cover and allows the Edit Board to go after the greedy union.
“No, the mayor won, CTU got schooled”
So is that going to be a thing?
“Mayor Lightfoot wins but everyone loses with her victory?”
So, undercut the Tribbies on the Edit Board, Mayor Lightfoot won, it’s on her for schooling that pesky CTU.
Losers can’t take too much blame when it’s a “unanimous decision” that this winning contract is Mayor Lightfoot beating a union.
I dunno if that kind of logic helps with the eventually of the winning mayor paying for all *her* winning.
- Montrose - Friday, Nov 1, 19 @ 3:07 pm:
“The mayor didn’t win, but CTU definitely lost.”
Huh? What did they lose? Not what did they compromise on. What did they lose?
- Steve - Friday, Nov 1, 19 @ 3:10 pm:
OW
That’s a lot to think about before the next strike.
- Oswego Willy - Friday, Nov 1, 19 @ 3:10 pm:
=== Sounds like Sharkey delivered for his members, but he sure acted like a sore loser yesterday.===
This was so confusing. You’re on it. Quietly take the win, smile, know you boxed in the Mayor for owing a great deal of pain.
=== CTU definitely lost.===
What did they definitely lose?
According to the mayor, this was the best contract for CTU… ever.
- eyeball - Friday, Nov 1, 19 @ 3:14 pm:
How much can CPS generate in $ with an increase in its levy by CPI? Will a referendum be necessary? CPS may be moving to a Tier 2 school district in the state funding formula during the term of this contract which will result in less state money. Will CPS/CTU ask the state for changes in law for increased funding?
- DarkDante - Friday, Nov 1, 19 @ 3:14 pm:
==Mayor Lightfoot won…==
Ummm, she gave away the farm, back-tracked on her own word at least 3 times, and shattered much of the already muted progressive support for her platform. I hesitate to call this a “win” for the mayor.
- Oswego Willy - Friday, Nov 1, 19 @ 3:15 pm:
=== That’s a lot to think about before the next strike.===
The Mayor has no luxury of time;
She’s Mayor everyday, there’s still no budget, and still… neither the means for CPS paying this contract, or funding for her budget… exists.
CTU… they go back to teaching.
- Steve - Friday, Nov 1, 19 @ 3:15 pm:
Anyone who thinks Sharkey lost is well … wrong. He got his members a darn good deal. He went up against someone with triple victim status in the oppression olympics and won. It’s easy to beat up Mayor 1% : it’s much more challenging to defeat a victim .
- Forest Fire - Friday, Nov 1, 19 @ 3:18 pm:
And all of the other City of Chicago public sector unions will demand a similar % increase for their members. With spikes in crime, graffiti and litter (it’s back) and a City Council and County Assessor intent on soaking the middle class they have labeled as “wealthy” we may see a shift in population to the suburbs.
- Three Dimensional Checkers - Friday, Nov 1, 19 @ 3:20 pm:
I don’t know if it makes much sense to think of this in terms of win/lose. Mayor Lightfoot won with such overwhelming numbers, and it is very clear most voters in Chicago saw her as a reformer and progressive. So, I am not sure losing the contract is a loss. CTU wanted to tarnish Mayor Lightfoot’s progressive credentials, and I am not sure they have especially with the loss/win contract.
- Oswego Willy - Friday, Nov 1, 19 @ 3:20 pm:
=== we may see a shift in population to the suburbs.===
That’s been happening.
- Grandson of Man - Friday, Nov 1, 19 @ 3:20 pm:
“The mayor didn’t win, but CTU definitely lost.”
With who? CTU delivered the results it sought, more or less. It would have been very bad if CTU was guided by the most rigid voices of the farthest left wing, but to its credit, terms were accepted before the strike really dragged on too much and damaged the union. There is the political angle that must always be considered.
- Teve Demotte - Friday, Nov 1, 19 @ 3:21 pm:
CPS enrollment declines by 6,000 to 9,000 kids a year. CPS’s bond rating is still in junk status. Debt service payments and pension payments comprise a larger percentage of CPS’s budget. This significantly increases headcount over time. Lightfoot cannot afford this contract from an operating budget perspective unless the state kicks in significantly more money. The more serious issue over time will be the CPS pension problem. CTU only pays 2% towards their pensions, with CPS picking up via “the pension pickup” 7%. CPS must also pay changes in actuarial assumptions and shortfalls if the pension under-performs rate of return expectations. The basic laws of economics has not changed. Absent help from the state combined with taxing the cap each year plus more borrowing, CPS is potentially headed down the road to insolvency.
- Oswego Willy - Friday, Nov 1, 19 @ 3:23 pm:
=== So, I am not sure losing the contract is a loss.==
Wait till the city must pay. Mayors own.
=== CTU wanted to tarnish Mayor Lightfoot’s progressive credentials, and I am not sure they have especially with the loss/win contract.===
It’s a 5-year deal, considered by this mayor as the best deal ever for CTU. The rest on tarnishing will be the Tribbies first railing on how Lightfoot got her contract, then how Lightfoot can’t pay for it.
The rest is the parlor politics.
- Father Ted - Friday, Nov 1, 19 @ 3:25 pm:
I’m still of the opinion that nobody won and both sides came out of this with plenty of stench on them.
The mayor was exposed for writing checks she couldn’t cash and (I admit this part is fairly anecdotal) CTU lost a good amount of credibility among people who were put off by some of CTU’s demands.
The saddest part about it is that negotiations will only be more contentious next time around.
- Oswego Willy - Friday, Nov 1, 19 @ 3:26 pm:
=== Lightfoot cannot afford this contract from an operating budget perspective unless the state kicks in significantly more money===
Lightfoot will need 60/71, 30/36… can you find them?
Also Lightfoot has tried to leverage the Governor on the progressive tax, forgetting she’ll need his signature too.
I’m beginning to think the Lightfoot Crew hasn’t grasped how dire their situation is without allies.
=== CPS is potentially headed down the road to insolvency.===
Not really, the problem has been ignoring the true need of revenue at the required levels.
- Sue - Friday, Nov 1, 19 @ 3:27 pm:
Since CPS gets to pass it’s own tax assessment independently I imagine there is definitely going to be a tax hit to pay for this giveaway.
- 47th Ward - Friday, Nov 1, 19 @ 3:33 pm:
===I imagine there is definitely going to be a tax hit to pay for this===
CPS is subject to tax caps which limit its ability to hike it’s levy beyond inflation. And since CPS has hiked its levy to the max pretty much every year anyway, I doubt many folks will notice a big increase, just the slow steady upward trajectory we’ve been on for some time.
The problem will come if the costs exceed CPS’s ability to increase the levy.
- Three Dimensional Checkers - Friday, Nov 1, 19 @ 3:33 pm:
===the Tribbies first tailing on how Lightfoot got her contract, then how Lightfoot can’t pay for it.===
The Chicago Tribune Editorial Board has not had a major impact on Chicago politics since I was a child.
Sure, she’ll have a tough time scrambling around for new revenue, but Chicago is a very liberal city. If I was the Mayor, I rather have the contract and challenges than have the electoral think of me as a conservative.
- Amalia - Friday, Nov 1, 19 @ 3:34 pm:
@Steve, LOL. sure, all the scores are going way up. tax on.
- Northsider - Friday, Nov 1, 19 @ 3:35 pm:
As a Chicagoan, I frankly don’t give a %$&@! whether the Mayor or CTU “won”; is this a good deal for the children in our schools?
Have they won? If so, I’m satisfied.
- Oswego Willy - Friday, Nov 1, 19 @ 3:38 pm:
=== The problem will come if the costs exceed CPS’s ability to increase the levy.===
(Enter the need from Springfield)
=== The Chicago Tribune Editorial Board has not had a major impact on Chicago politics since I was a child.===
It’s not the impact of the raw politics, but the narrative of Lightfoot.
Like “Pat Quinn Failed”, like “Bruce Rauner Failed”… the narrative will be Lightfoot thinks winning is raising taxes on Chicago, something Daley and Rahm avoided like the plague, and instead of doing a Thompson Pivot “It’s much worse than i could ever have imagined”, Lightfoot continually sold this deal as the best deal ever… and now the paying begins.
Oh. The City is light $838 million too.
- Thomas Paine - Friday, Nov 1, 19 @ 3:41 pm:
Don’t take my word for it that The CTU won, take Lori Lightfoot’s word for it:
“It (the contract) includes a commitment to increase staffing for wraparound services - a nurse and a social worker in every school within five years, beginning with the highest-need schools. It includes investments in additional support staff and smaller class sizes for the schools where the need is greatest. And it includes new supports for students experiencing homelessness - something I’ve long advocated for. All of this is in the contract, in writing. It will get done.
The key objectives for Dr. Jackson and I were accomplished in reaching this agreement. And more importantly, our students and families will reap great benefits from it. The agreement has a five-year term. It is financially responsible. It honors our teachers and school staff - all of whom will see a 16 percent raise over the course of the contract. And it is true to our values.
CTU has also accomplished a great deal for their membership with this agreement. They raised a number of important issues that impact our students and families – from increased funding for sports and athletics, better supports for our diverse learners, highlighting the importance of restorative justice, and more. And on these and many others, I am confident in saying that our teams were able to come to agreement in a way that will deliver tangible improvements, and make a real difference for our students.”
- Quibbler - Friday, Nov 1, 19 @ 3:42 pm:
== It’s easy to beat up Mayor 1% : it’s much more challenging to defeat a victim. ==
Uh, Lori Lightfoot made roughly $1 million per year as a corporate lawyer at Mayer Brown. She *is* Mayor 1%.
- City Zen - Friday, Nov 1, 19 @ 3:43 pm:
Not sure how you can paint this as a CTU loss. Sure, Jesse comes across as the slowest of the Gruber brothers in the Die Hard world of negotiators, but they we able to procure more dues-paying union members. In a time of shrinking enrollment, that’s a solid union revenue win.
- Rich Miller - Friday, Nov 1, 19 @ 3:44 pm:
===which limit its ability to hike it’s levy beyond inflation===
They can always have a referendum.
- SpfdNewb - Friday, Nov 1, 19 @ 3:44 pm:
I’ll amend my comment yesterday. Everyone lost.
- Steve - Friday, Nov 1, 19 @ 3:44 pm:
- Amalia -
CPS probably will not have a student population of what they had in 1950 or 2000 by the next contract. But, it’s just a guess. The good is currently 18.7% of CPS is English learners and CTU and Mayor Lightfoot want to invite more English learners to the district. This is the foundation of higher SAT scores and diversity.
https://tinyurl.com/yxeyoedj
- Teve Demotte - Friday, Nov 1, 19 @ 3:51 pm:
Oswego Willy, you are generally spot on, however, I do think the combination of a rapidly declining student population, under-enrolled schools, bad credit rating, 24% pay increase, a large expansion of CPS FTE’s, continued borrowing, and CTU members paying only 2% of their gross wages towards their pensions is a massive problem. While the state may increase, again, to fund education it will not be enough and CPS will be in financial trouble again. This presumes the current CPS administration will manage CPS finances prudently and that may be a big question mark.
- Anonymous - Friday, Nov 1, 19 @ 3:52 pm:
Pat Quinn, Bruce Rauner, Lori Lightfoot Etc all failed because of the ridiculous power week kneed politicians have given government unions to demand unaffordable pay and benefits
- Get Real - Friday, Nov 1, 19 @ 3:54 pm:
What good deal makers also do not do is bad mouth the other side 30 seconds after the deal has been made. Grow up.
- Oswego Willy - Friday, Nov 1, 19 @ 3:55 pm:
=== you are generally spot on===
Very kind. Others, I am sure, disagree.
=== While the state may increase, again, to fund education it will not be enough and CPS will be in financial trouble again. This presumes the current CPS administration will manage CPS finances prudently and that may be a big question mark.===
Getting a judge to think all avenues of revenue have been exhausted might be problematic, given if CPS hadn’t even tried referendum yet.
With respect.
- 47th Ward - Friday, Nov 1, 19 @ 4:00 pm:
=== They can always have a referendum.===
Yep. Then we’ll see how politically powerful CTU is in the city. My guess is that would be quite revealing.
- Dybalaton - Friday, Nov 1, 19 @ 4:06 pm:
A few nurses aren’t going to break the Bank. Read the fine print of the agreement. Almost no schools will qualify for the homeless coordinator positions or more resources due to large class sizes. CPS continues to hemorrhage enrollment and is projected to continue to do so.