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CPS to pols: Tell us which of your projects to cancel

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A swath of Democratic representatives joined Majority Leader Barbara Flynn Currie on Thursday morning in asking that the extra TIF money — an estimated $150 million to $350 million — go toward helping CPS plug its $480 million budget hole.

But…

Budget Director Alex Holt said using TIF surplus is a “great idea.” That’s why the mayor has been “aggressively” doing just that — to the tune of $700 million since 2011 and $113 million this year alone, she said. Roughly $60 million of that money is earmarked for CPS.

“We froze downtown TIFs. We declared an aggressive surplus. There’s not a whole lot left to surplus. At this point, we probably need to look at canceling current or future projects to generate more money,” Holt said.

“To the extent that any elected officials want to cancel projects in their community, we would be more than happy to work with them and send additional surplus dollars to CPS. However, the amount of additional surplus is not going to be sufficient to solve the financial problem at CPS.”

It would be nice to know how much excess money is in those funds, but that’s a good point by CPS. Pretty much everybody screams about TIF districts, but they’ve funded a whole lot of projects.

* Meanwhile…

A CPS presentation to investors shows that its preliminary budget for 2016-17 — pegged at $5.7 billion — relies on $800 million in funding that the district hasn’t yet secured.

The plan includes a $458 million subsidy from the state — even though lawmakers hardly considered this year’s request for a similar amount. It anticipates $170 million in new tax dollars from Chicago residents to help pay pensions — something the state also would have to approve.

And CPS is expecting to net another $170 million after teachers begin paying 7 percent of their salaries toward pension costs — an expense currently covered by the district. Chicago Teachers Union Vice President Jesse Sharkey said, “There’ll be a strike before that happens.

The state subsidy and the property tax hike approval aren’t coming any time soon, either.

* But CTU President Karen Lewis downplayed talk of a strike yesterday and said those pension payments are on the table…

Lewis said those losses could include the end of the city’s practice of picking up the bulk of teachers’ required contributions to their pensions… “I think that people understand the dire straits that CPS is in and that we are willing to make certain sacrifices.” […]

Lewis has described eliminating the pension pickup as “strike-worthy,” though she tried Thursday to downplay and dangle the possibility of a walkout.

“People always worry about that strike — that’s what happens when you don’t get to an agreement. So at this point that’s not the way things are looking but I’m not going to rule it out either,” Lewis said. “I think people need to be prepared either way.”

Lewis said talks to replace a pact that expired June 30 were “going well.”

posted by Rich Miller
Friday, Jan 22, 16 @ 10:55 am

Comments

CTU needs to appear amenable to continued talks and refrain from incendiary rhetoric. Looks like Ms. Lewis may finally be realizing that. Look reasonable CTU, keep the “we are all in this together” attitude. This is about survival.

Comment by Anonymous Friday, Jan 22, 16 @ 11:01 am
Why would the State need to approve the $170M in new taxes for pensions? Thought CPS already had the right to levy for the full pension payment amount.

Comment by RNUG Friday, Jan 22, 16 @ 11:02 am
I had heard a rumor that a contract agreement was near and could have been finalized as early as yesterday. That was clearly optimistic and didn’t happen but the current tone from Karen Lewis suggests a reason for optimism.

Comment by The Captain Friday, Jan 22, 16 @ 11:03 am
In Chicago, TIFs have become a pot of gold at the end of the rainbow and we’re like a bunch of leprechauns searching in vain for it.

Incidentally, the TIF in my neighborhood has funded two school construction projects.

But it’s good to see Lewis cooling down the rhetoric. I’m guessing Claypool/Rahm have finally come to the realization no help is coming from Springfield so they’re giving negotiations another try.

Comment by Ricardo Friday, Jan 22, 16 @ 11:06 am
antecdotaly i think most govt and city workers are willing to increase their retirment contribution…. heck it helps make sure the money isnt redirected… the big ask is to increase the pick up slowly over time…. say 1% a year…

Comment by Ghost Friday, Jan 22, 16 @ 11:06 am
Lewis knows a CTU strike is exactly what Rauner wants for PR purposes.

Comment by Wensicia Friday, Jan 22, 16 @ 11:09 am
TIF money is a one-time solution that now appears not doable. CPS still has in its budget $458,000,000 of new money from the state. Ain’t gonna happen. $170m in new tax revenue and $170m in stopping the ludacris practice of CPS paying teacher portion of their retirement. Some good news, some bad news but in the end still no solution.
Exactly where can I find a plan on how we move Illinois forward from Madigan, Lang and Currie? The Democratic brain-trust with a combined 111 years of service in the House have no plan on moving us forward. Politics and status quo is all they want. Tired of it.

Comment by Anon2U Friday, Jan 22, 16 @ 11:15 am
Someone sane has Karen’s ear. Hope that continues.

Comment by A guy Friday, Jan 22, 16 @ 11:16 am
Lewis sure changed her tune quickly.

And surprise, the latest reports now say Chicago Public Schools DO have enough money to make it through the year.

What a stunning development, largely because Rauner called their bluff. People like to mock “Shake Up Springfield”, but this is different from business as usual, and it is slowly starting to get some results in certain areas regarding fiscal responsibility.

Comment by Anonymous Friday, Jan 22, 16 @ 11:22 am
==Tired of it.==

Wanna know what I’m tired of? This crap:

“Politics and status quo is all they want. ”

You zero sum gamers think that if a particular solution isn’t supported then that means all anybody wants is the status quo. Bull. And your whining about it being all the Democrats fault? That’s nice. I hope you feel better now. But how’s that whining working out for you? Solving lots of problems with that? I mean, look how all of that blame game has worked out for the Governor.

So you wanna know what I’m tired of? Whining. Just stop already. Stop playing the victim. Stop whining. Stop the hyperpartisan nonsense. And start working together instead of making yourself feel better about figuring out who should be blamed.

Comment by Demoralized Friday, Jan 22, 16 @ 11:27 am
==People like to mock “Shake Up Springfield”, but this is different from business as usual, and it is slowly starting to get some results in certain areas regarding fiscal responsibility.==

What planet are you living on? If 7 months without a budget is fiscal responsibility to you then I’d hate to see what you consider irresponsible. But keep on cheering for the “shaking up Springfield” nonsense. It’s working out oh so well right now. You people really are something.

Comment by Demoralized Friday, Jan 22, 16 @ 11:29 am
@Demoralized,
Pot meet kettle. Go back and read your post from a third-party perspective. Not sure if I call you Tom or Wendy.

You don’t like the Governor or any part of his solutions for fixing Illinois. Got it. Who, EXACTLY, has offered up any solutions that may be in keeping with the Democrats values? Once again, I’ll be waiting without holding my breath.

Comment by Anon2U Friday, Jan 22, 16 @ 11:35 am
I think state law puts a cap on how much CPS can levy for their property tax. The state ought to let the city/CPS up their property tax to get away from one of the lowest in the state (even with the recent city property tax increase). That ought to be a city decision.

Comment by Dan Johnson Friday, Jan 22, 16 @ 11:40 am
===I think state law puts a cap on how much CPS can levy for their property tax.===

That’s exactly right. But the city could have a referendum to hike the levy above the cap. To my knowledge, that’s never been tried. I wonder how the voters would vote on raising $1 billion for the schools?

There’s a QOTD for you Rich.

Comment by 47th Ward Friday, Jan 22, 16 @ 11:55 am
If I’ve posted twice I apologize. I can’t see a post I just sent.

Anyway:

Anon2U:

I’ll say again. How has blaming anyone worked out? Been productive?

You can whine all you want about who or who isn’t giving solutions. What I’ve seen is some attempts (some genuine, some not) on certain topics. Workers comp. Property taxes. There should be more.

What’s the Governor doing? Doubling down on insisting on adding anti-union proposals to everything. That’s helpful how? Every time he does that you can count on an immediate rejection. Does he learn? Nope. He just keeps doing it. So here we sit. No talk of solutions by anyone.

What’s your comment? Well it’s this:

“where can I find a plan on how we move Illinois forward from Madigan, Lang and Currie”

Guess what. You have to work with those very people on a plan. You, like the Governor, apparently want to ignore that little fact. Good luck with that.

Comment by Demoralized Friday, Jan 22, 16 @ 12:02 pm
So, what else is new? It’s Groundhog Day.
How many times has CPS pulled this “we’re broke” and “lay-offs unless we get concessions” only to magically “find” extra money at the last moment. They routinely pull this tactic during contract negotiations.
Now is the time for an impartial forensic audit of CPS finances going all the way back to 1995 when Daley took over the schools.

Comment by Sue Friday, Jan 22, 16 @ 12:15 pm
===an impartial forensic audit of CPS finances===

Again with this nonsense?

Do you even know what a forensic audit is and how much time and money it would take to do such a thing? Years and lots, is the answer.

Comment by Rich Miller Friday, Jan 22, 16 @ 12:27 pm
According to the City of Chicago website

“Tax Increment Financing is a special funding tool used by the City of Chicago to promote public and private investment across the city”

I read nothing in this description about solving the CPS budget problems or its solution in that statement.

The proposal to “sweep” the TIF account reminds me of former Illinois Governor Rod Blagojevich and his “sweep” of hundreds of accounts. He also had a budget to solve. The “sweeps” did not solve the financial problems of Illinois and I think that it is unlikely that the TIF account “sweep” will solve the CPS problem. The probable effect will be an even larger problem next year but no possibility of a TIF account “sweep”.

===The state ought to let the city/CPS up their property tax to get away from one of the lowest in the state===

This sounds like a good solution to me.

Comment by Hit or Miss Friday, Jan 22, 16 @ 1:28 pm
I’d hazard a guess that Rauner’s CPS proposal/shenanigans earlier this week helped CTU negotiations along.

Comment by Politix Friday, Jan 22, 16 @ 1:41 pm
==What a stunning development, largely because Rauner called their bluff.==

Ha, yeah, OK, CTU has to negotiate with Mr. 18% approval, and they’re running scared from an outside proposal that will do nothing more than increase the Rules’ Committee’s paperwork.

Comment by Boss Tweed Friday, Jan 22, 16 @ 1:58 pm
Hit or Miss: The TIF sweep would be a declaration that too much property tax money got funneled into the TIF account and that the surplus would be directed, pro rata, to the taxing bodies that would have received the property tax money if it had not been diverted to the TIF account. The bulk of that property tax bill is from the school district who would obviously get the biggest payment if a surplus were to be declared. It is a one off revenue item, but more like a refund that a sweep.

Comment by SAP Friday, Jan 22, 16 @ 2:13 pm
OK, Rich.
How about just a plain old vanilla audit, then?
Is CPS truly underfunded? Is it overfunded? Where did all the money go? Who advised and profited on all the borrowing and bond deals and privatization and did they breach a fiduciary responsibility? Were there conflicts of interest?
John Kass is saying that “Rauner and other business leaders helped put Emanuel in office. And finances were explained to the Rahmfather.”
So, perhaps THEY can explain the finances to us. Under oath.

Comment by Sue Friday, Jan 22, 16 @ 2:21 pm
Administrative layoffs at CPS . . .

http://www.sj-r.com/news/20160122/chicago-public-schools-announces-227-administrative-layoffs

Comment by Demoralized Friday, Jan 22, 16 @ 2:48 pm