Capitol Fax.com - Your Illinois News Radar

Today’s number: 20

Posted in:

Illinois

* Michael Sneed says CPS CEO Forrest Claypool is looking at cutting administrative positions by a third…

Insiders tell Sneed to look out for the massive cuts as a down payment on bridging this year’s $500 million budget gap — and an effort to avert the worst impacts on classrooms.

Sneed is told about 450 CPS administrative jobs could be chopped to the tune of $50 million. The CPS Central Office, which has 1,400 administrative positions, has a $150 million budget. […]

Backshot: Claypool has been hustling to persuade Springfield to step up and do its part with a new campaign called “20 for 20” — arguing that CPS students are 20 percent of the state’s enrollment, but only get 15 percent of the funding.

Claypool and Mayor Rahm Emanuel have asked the state for a $480 million bailout, which includes $200 million for the Chicago Teachers’ Pension Fund.

* Senate President John Cullerton is also on the “20 for 20″ bandwagon. From his Tribune op-ed…

We estimate that Chicago schoolchildren, among the state’s most disadvantaged, will receive $4,037 per student in fiscal year 2016 while all other districts will receive, on average, $5,461 per student. That’s less than $3 in state funding to Chicago schools for every $4 suburban and downstate schools receive, on average. […]

The state’s unequal provision of classroom funding is even more abhorrent because 86 percent of Chicago public schoolchildren are low-income. Studies have shown it takes more money, not less, to educate children living in poverty. […]

Schools with high levels of children in poverty should get more than average funding if we are to demand the same results as in other schools. But if Chicago schools simply received average funding — 20 percent of funding for the 20 percent of state enrollment the city represents — Chicago Public Schools would receive upward of $500 million more, enough to avoid classroom cuts this year while the district fights its way out of an unprecedented $1.1 billion budget hole.

State funding is based partly on the local property tax base, and Chicago’s is growing. While Cullerton’s point about low-income families is spot-on, if we want to start basing state school funding on population, a whole lot of wealthy suburban districts will make out like bandits.

Cullerton also mentions the $3.8 billion given by the state to suburban and Downstate schools for their pension fund. Chicago receives very little for its own fund. On that topic, he makes a good point.

* But…

Radogno and Durkin also said lawmakers agreed [during yesterday’s leaders’ meeting] to shelve talk of changing the formula Illinois uses to fund public education, saying they will take it up after a budget deal is reached. Lawmakers have long agreed that the system should be more equitable, but not on how to fix it.

posted by Rich Miller
Wednesday, Dec 9, 15 @ 8:21 am

Comments

=Cullerton also mentions the $3.8 billion given by the state to suburban and Downstate schools for their pension fund. Chicago receives very little for its own fund. On that topic, he makes a good point.=

Ask and ye shall receive Rich. CPS and the City wanted control of the pension system, especially back when it was over funded, and got it. CPS is the ONLY district that can tax to pay it’s share of the teacher pensions. (Where did that money go?) That is a key point when considering cost shift.

Cullerton clearly does not understand school funding and the formula. His statement that “all other districts will receive, on average, $5,464 per student”. This “average” is disingenuous and misleading. The average is massively skewed by a number of Cook County districts in particular.

Forrest uses sketchy math to say the least. This information is easily checked and it is clear that he and Cullerton are ignoring some of the funding streams that CPS gets like the pverty grant. CPS receives almost 50% of the poverty grant funds (approx $3,000 per student) alone. It also receives a huge offset for PTELL, which is ironic since voters wanted PTELL, legislators love it, and then the legislators turned around and voted to offset the effects with supplemental funding. CPS gets nearly $300,000,000 just in PTELL.

This list goes on and on and clearly demonstrates the both Cullerton and Claypool don’t know the facts or are simply playing games with numbers.

Comment by JS Mill Wednesday, Dec 9, 15 @ 8:56 am
Averages!
Please spare us attempts to use averages as something meaningful!

Comment by VanillaMan Wednesday, Dec 9, 15 @ 9:07 am
In virtually any other Midwestern state, Chicago would be getting more per student than other parts of the state due to the higher proportion of special needs students in the city. The only downstate and suburban districts I see getting shortchanged by comparison to Chicago are ones like Rockford and U-46 that have similarly high caseloads but a smaller share of state funding. The Republican approach to education funding continues Illinois chronically low overall share of education spending compared to other states and combines it with districts like New Trier getting substantial poverty assistance that they could easily cover in-house.

And who gets taxed to cover those pensions, with those magic powers that CPS has that other districts don’t? Chicago residents, who are also on the hook for their “share” of the big wads of cash Springfield is handing out for pensions in every district except Chicago.

Comment by Angry Chicagoan Wednesday, Dec 9, 15 @ 9:16 am
One solution would be to tie state funding directly to local property taxes. I mean, we wouldn’t want a wealthy suburb to get more overall funding (on a per student basis) than a downstate rural school, would we?

Comment by Anon Wednesday, Dec 9, 15 @ 9:23 am
Sorry, Chicago, but until the day comes that your residential tax base is assessed at something closer to the 33-1/3% like it is out here in the collars, I have a hard time sending more of our money to you while our property taxes go up to make up the difference in education funding.

https://illinoyances.wordpress.com/2015/09/08/education-part-iii-ptell-giveth-and-ptell-taketh-away/

https://illinoyances.wordpress.com/2015/09/11/education-part-iv-poverty-grant-and-ptell-subsidy-why-do-they-matter/

Much of what’s linked above comes from:
School Funding in Illinois, an Examination by the IL Senate Republican Caucus (so put whatever spin you like on it). The link is here:
http://www.senategop.state.il.us/Portals/0/Docs/Cost-Shift-FINAL.pdf?timestamp=1409174250732

and from “Fixing Illinois” by James Nowlan and Thomas Johnson. The link is here:

http://www.press.uillinois.edu/books/catalog/35zfp8zn9780252079962.html

Comment by Steve Reick Wednesday, Dec 9, 15 @ 9:25 am
Good for Claypool, if accurate. The pool of administrators at CPS must be absolutely bottomless because every new mayor and CPS chief announces “massive” cuts in CPS administration soon after assuming office.

Comment by Cassandra Wednesday, Dec 9, 15 @ 9:47 am
Good signs from Claypool, that he’s not lost in the alternate universe of public education “management.”

OK. the Leaders agree not to wait for a new school funding scheme before negotiating our overdue state budget. How about they now agree not to wait for local union and wage changes.

Comment by walker Wednesday, Dec 9, 15 @ 10:05 am
@Steve Reick, sure, we can have that debate, if you wish to replace Illinois’ entire local government funding system with the need-based equalization and tax-base sharing that you see in other states like Minnesota and Massachusetts. Until then, I fully endorse Chicago’s approach of going full-bore for mass tourism to generate the sales tax dollars we need to keep property taxes non-prohibitive.

Comment by Angry Chicagoan Wednesday, Dec 9, 15 @ 10:05 am
==@Steve Reick, sure, we can have that debate, if you wish to replace Illinois’ entire local government funding system with the need-based equalization and tax-base sharing that you see in other states like Minnesota and Massachusetts.==

@Angry Chicagoan: I see that as a debate worth having.

Comment by Steve Reick Wednesday, Dec 9, 15 @ 10:16 am
@AngryChicagoan- First a correction, Rockford and Elgin (U-46) are not “downstate”. Elgin is suburban and Rockford is near the Wisconsin state line (extreme north). And they are not getting short changed if you look into the numbers. U-46 has run an annual budget SURPLUS on multiple occasions, even during the last five years when state support is reduced.

I am not sure where you find New Trier getting significant poverty assistance, if you have that data please share because I think you are incorrect.

CPS and the Chicago’s fiscal issues are of their own making (and mainly not Rahm’s doing at least with CPS). They get a disproportionate share of the funds given there overall percentage and relative percentage (relative to overall state numbers) so they have absolutely nothing to complain about.

Another example: the ISBE just opened $495 million in Qualified School Construction Bonding to state school districts. That money is not available to CPS because they were given theirs several years ago to the tune of $510 million. These are low to no interest bonds that are a remnant of the ARA program and have been sitting around for years. Chicago got their first, got it directly, and got more than 50%.

Maybe, they should pay property taxes like everyone else.

Comment by JS Mill Wednesday, Dec 9, 15 @ 10:17 am
===State funding is based partly on the local property tax base, and Chicago’s is growing.===

Well, Chicago likes them TIF districts a lot. I imagine they might have created their own problem here, yet again.

Comment by Anon Wednesday, Dec 9, 15 @ 10:18 am
First, Chicago’s residential property taxes are lower because commercial property in Cook County is taxed at a higher rate than residential. Every other county in the state taxes residential and commercial real estate at the same rate.

Second, both Radogno and Cullerton make legit points. Radogno is right when she argues Chicago gets a disproportionate amount of state aid through block grants for special ed, ESL, and programs. And Cullerton is right when he says downstate and suburban districts get a disproportionate amount of state revenue because Springfield pays for their pension costs (that tab is about 3.5 billion this year.)

Cut through all the regional and partisan bickering and there are two possible solutions to level the field: Eliminate Chicago’s block grants and have the state pick-up Chicago’s pension costs going forward, as the state does for every other district. Or, shift teacher pension costs from the state back to downstate and suburban districts and allow the districts to levy a property tax to help pay for it, as Chicago does now.

Comment by The Middle Wednesday, Dec 9, 15 @ 11:22 am
=CPS and the Chicago’s fiscal issues are of their own making They get a disproportionate share of the funds given there overall percentage and relative percentage (relative to overall state numbers) so they have absolutely nothing to complain about.=

This is just flat out false. It might have been true a decade ago but it isn’t now. As Cullerton points out, billions have been added to suburban and downstate funding in the last seven years while Chicago was cut 10 percent through declining general state aid.

Chicago kids are 20 percent of state enrollment, Chicago taxpayers pay 20 percent of the state income tax, but CPS gets only 15% of state funding.

All you have to do is add up AL the categories of state education aid–from extra poverty grants to pension and retiree health care subsidies.

And you can’t exactly say the kids should get screwed because you think Daley or the legislature made bad decisions years ago. Bottom line is that you have to treat funding for children at least equally, no less, when they’re overwhelmingly low-income,

Comment by Chicago taxpayer Wednesday, Dec 9, 15 @ 11:48 am
The Middle, is should be noted however, that it was that the block grants were created during 95-96, when the GOP had the House, Senate and the mansion. And it was the same bill that eliminated the CPS pension levy. Every Democrat voted against it.

But for Republicans to complain about the block grants today, when they were created by Republicans over the objections from Chicago and from Democratic members of the GA is a bit disengenuous.

Comment by Juice Wednesday, Dec 9, 15 @ 11:51 am
Maybe, they should pay property taxes like everyone else.

I pay property tax. Almost certainly more than 97% of homeowners in the state.

Comment by Tone Wednesday, Dec 9, 15 @ 12:04 pm
- Cassandra - Wednesday, Dec 9, 15 @ 9:47 am:

Good for Claypool, if accurate. The pool of administrators at CPS must be absolutely bottomless because every new mayor and CPS chief announces “massive” cuts in CPS administration soon after assuming office.

I agree, if true, it is fantastic news!

Comment by Tone Wednesday, Dec 9, 15 @ 12:05 pm
Collar county taxes are way higher then Chicago. The property assessments are way higher to start with, and residents have again and again passed referendums to raise their own school taxes.
Taxes are relatively low in Chicago. If the residents of Chicago want money for their schools, they need to pass their own referendum to raise their school taxes.

Comment by DuPage Wednesday, Dec 9, 15 @ 12:10 pm
=Almost certainly more than 97% of homeowners in the state.=

You are blessed to have such success in life and possess such valuable property. I hope you continue to enjoy the benefits of our great state.

Comment by JS Mill Wednesday, Dec 9, 15 @ 12:16 pm
Put the CTU into TRS. And do a 10 year cost shift. Problem solved.

Comment by Rollo Tamasi Wednesday, Dec 9, 15 @ 12:17 pm
Why would the repubs want to agree to any public education changes now that could help Chicago? This is one of their hostages to leverage in the budget negotiations.

Comment by TD Wednesday, Dec 9, 15 @ 12:18 pm
=I pay property tax.=

The meaning of comment, which you responded to, is not that Chicagoan’s are not paying taxes. Obviously they are. If you took it in that fashion that was not the meaning. But, property valuations for tax purposes (EAV) are taxed at a lower percentage than everyone else in the state. That is a simple fact. If you own a property worth $1 million in Chicago you will pay less in taxes than a property valued at $1 million in every other county in the state with the same tax rate. Nice for you.

Comment by JS Mill Wednesday, Dec 9, 15 @ 12:21 pm
JS Mill, but you have to add that businesses in Cook County are taxed at a much higher rate than everywhere else in the State. That’s the trade off.

Comment by Juice Wednesday, Dec 9, 15 @ 12:34 pm
Always talk about funding, but never any innovation in improving CPS student performance and graduation rates

Comment by Downstate Hack Wednesday, Dec 9, 15 @ 2:18 pm
JS Mill Thanks for pointing out that City homeowners pay lower property taxes than homeown ers with the same value homes in the rest of IL.

Comment by nona Wednesday, Dec 9, 15 @ 2:30 pm
Several things need to happen. CPS needs to call a property tax referendum to go above the cap which is allowed by law. The legislature needs to change the CTPF ramp to reach 90% funding, currently its 2045. Funding for the normal pension costs need to come directly out of property taxes from the City and go to CTPF, like it was before Mayor Daley got that provision of law removed which President Cullerton supported by the way.

Once these things are accomplished the State should provide additional funding to CPS to the extent necessary to keep it solvent. If the State fails to do this CPS should request ISBE to appoint a financial oversight board for CPS which is provided by the School Code. The oversight board has extensive powers to void contracts and make adjustments necessary to keep any school district solvent.

Comment by Rod Wednesday, Dec 9, 15 @ 3:09 pm
Oh me,Oh my…..here we go again…..power to impair contracts…..I don’t think so….prohibited by the U.S. Constitution Cullerton needs some remedial math. 20% of zip is still zip. If the state took “primary responsibility” as the State constitution requires, CPS would not have a problem.

Comment by ottawa otter Wednesday, Dec 9, 15 @ 9:29 pm
BK for school districts after pushing the obligations to where they were created.

Comment by Tone Wednesday, Dec 9, 15 @ 10:14 pm
I would also point out that Cullerton’s per student figure must include the $3.8 billion pension funding to downstate. Of that $3.8 billion, about $2.9 billion is really debt from the State shorting the pension funds - about $900 million is the normal cost of downstate pensions.

If you take out the State pension debt on behalf of downstate schools (this was created by the State and is their debt - not the individual schools) then the per student amount to downstate is about $3,800 per student from the State compared to the reported $4,058 to Chicago.

Comment by archimedes Thursday, Dec 10, 15 @ 6:33 am