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* Decades of fiscal neglect did far more damage than Gov. Rauner did, but his comments sure didn’t help…
The Chicago Public Schools paid more to borrow less because of Gov. Rauner’s continued talk of bankruptcy — and if that was the governor’s intention, it’s “shameful,” Mayor Rahm Emanuel said Friday.
“The governor is well-versed in finance, coming out of private equity and the financial world. His comments weren’t helpful. … It affected certain things. … If it was intentional, it’s shameful. Only he can answer whether that was the purpose,” Emanuel said, two days after CPS was forced to pay an 8.5 percent interest rate. […]
“The state under his leadership … is now up to $7 billion in unpaid bills and growing. That’s not exactly who you would turn to for financial stewardship and leadership,” Emanuel said of the governor’s threat to take over Chicago Public Schools.
Emanuel defended the costly borrowing — and the $100 million in budget cuts that helped reassure skittish investors — as essential to keeping the school doors open until the state school aid formula can be rewritten, as state Senate President John Cullerton (D-Chicago) has promised to do with Rauner’s help.
* Meanwhile, in related news, I received this e-mail the other day…
Rich, hope you’re well. Wanted to run something by you that might be of interest for the blog. We were researching some of Sheriff Dart’s advocacy during his days in the General Assembly and stumbled upon his floor speech from the 1995 CPS battle, which of course resulted in reforms that many believe to be responsible for today’s CPS fiscal crisis.
Starting on Page 89, it was interesting to see how prophetic Dart was about the ramifications about the bill. Looks like a few others had similar messages as well. But below are a few choice quotes from him during the floor debate. We found it particularly interesting since history is sort of repeating itself, with Republican legislators outside of Cook County introducing a sweeping bill meant to “save” CPS.
“That is one of the hollowest, lamest definitions of collaboration I have ever heard in my life. This is what was…should be called was foisted on people. There was not one, absolutely one, not one elected official from the City of Chicago invited to one of these closed door meetings. Not one. Our children are at stake here, not yours.”
“You’ve set up a system that’s going to fail and you know it.”
“I am so terribly touched by all of your concerns. This is outrageous. You know it, I know it. You are forcing this on the people of the City of Chicago so you know, what do we have here? We have a plan, a very flawed one, that was drafted by you, not us. Drafted by Republicans. There was not one Chicago elected official invited or present during any of these meetings, This was drafted behind closed doors.”
“I have been so sick and tired of hearing you and your garbage over there about the Chicago public schools. Well guess what, the years of that are over. The years of hearing about the dropout rate and the reading scores, they aren’t our problem anymore. The years of hearing people making such irresponsible statements about this being a sewer are over because guess what Representative, it’s your sewer now. You’re the one that drafted this plan. This is your plan, not ours and so the problems are sitting at your doorstep, not ours, so get used to it. We are giving you time, you’ll have your four years, but don’t come to us and complain about our schools now because this is your plan and your sewer as you like to call it. So enjoy living in it.”
Thoughts?
posted by Rich Miller
Friday, Feb 5, 16 @ 3:05 pm
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Listen to Rahm, he speaks with gravitas on issues such as these . . .
Comment by Fake Mark Kirk Friday, Feb 5, 16 @ 3:08 pm
Miss Tom Dart’s sarcasm on the House floor. His perspectives 15 years ago ring true today. It’s amazing how long these issues and problems have been around without true resolution. I applaud Senate Pres Cullerton’s leadership on school funding reform. Hope winds in their sails to get something meaningful done for Chicago, the collars and downstate.
Comment by Downstate Dem Friday, Feb 5, 16 @ 3:24 pm
Oh, right, it was the reform legislation that ’caused’ the present CPS disaster. The Mayor and the people actually running the schools and their budgets are just innocent victims. Excessive spending and corruption and union-buying likewise had nothing to do with today’s crisis. Wow! Some revisionist history here.
Comment by Formerpol Friday, Feb 5, 16 @ 3:26 pm
Rahm- when you reimburse the City for the 5 million settlement for the McDonald shooting which was essentially a campaign expenditure we will listen to your complaints about the Governor- until then why don’t you read your poll numbers
Comment by Sue Friday, Feb 5, 16 @ 3:26 pm
===it was interesting to see how prophetic Dart was about the ramifications about the bill.===
I like Tom Dart, but that wasn’t so much prophetic. It was just partisan. He didn’t say anything about how the bill would result in what we see today, with unfunded pensions and charter schools siphoning money from neighborhood schools. That would have been prophetic. Complaining that the mean old Republicans were shoving a bill down their throats is just classic Springfield whining.
And again, I’m a fan of Dart’s. Whoever sent you this maybe should have used a different word. I don’t think prophetic means what he (or she) thinks it means.
Comment by 47th Ward Friday, Feb 5, 16 @ 3:38 pm
It would be more interesting to see who was cautioning about the consequences of the large pension raises of Edgar and Madigan.
Comment by Anon Friday, Feb 5, 16 @ 3:40 pm
So, Mr. Dart was aware in the mid-90’s that the city running CPS was doomed to failure? Probably because he knew the city was poorly run. That said, what was stopping the city and school managers from actually operating within their means and proving Mr. Dart wrong?
Comment by Anony Friday, Feb 5, 16 @ 3:40 pm
@Sue, way to change the subject
Comment by The Dude Abides Friday, Feb 5, 16 @ 3:46 pm
I agree with Rahm on this one. Although I do appreciate your point, Sue. Well taken.
Last time I looked the City of Chicago is in the State of Illinois. So anytime Ole Brucie wants to come up with a solution that will get the needed votes, and not just repeat his histrionic extremist anti-middle class rhetoric….I’m game to listen.
Comment by Jack Stephens Friday, Feb 5, 16 @ 3:51 pm
Anony, basically the Republicans were accused of kicking the can down the road and shifting control to the mayor so that when things blow up they can say it was the Democrat’s fault. Which is kind of what is happening.
Comment by Juice Friday, Feb 5, 16 @ 3:52 pm
“keeping the school doors open until the state school aid formula can be rewritten”
Hear that suburbs? You’re in the bullseye. The only way they can warp the formula enough to send any more money to CPS is to take more of your cash. Get ready, because they’re coming for your wallet. They don’t think Rauner will bail them out, but they can pass this without him, so now CPS debt will be on your back.
Comment by m Friday, Feb 5, 16 @ 3:54 pm
Every time that I see “fix the funding formula” I read “I will pay more for Chicago and more overall, but less money will fund my area schools”.
Everyone outside of the Chicago needs to wake up and smell the coffee on this one. Any changes to “fix the formula” or “help Chicago” equate to people outside of Chicago picking up their check.
Comment by FAIRNESS AND FAIRNESS ONLY Friday, Feb 5, 16 @ 4:00 pm
If I recall, Daley complained for years that he took all the heat for the schools, but didn’t have the power to run them (the Chicago School Finance Authority controlled the purse strings).
Careful what you wish for, you just might get it.
Comment by wordslinger Friday, Feb 5, 16 @ 4:09 pm
Juice - the Republicans of that era share the blame with the Dems in the kicking the can down the road thing. But after 20 years, I think the city owns the lion’s share of the fault on the CPS situation.
Comment by Anony Friday, Feb 5, 16 @ 4:10 pm
Why should the suburbs pay any price for the mismanagement of Chicago’s schools. All of us in the burbs are already paying more to support our local schools as the State has reduced education support. Is it our fault the Daley administration failed to pay pension contributions for 15 years - why not focus on the fact that CPS’ pension was fully funded in 1994 when Daley decided he would raid the pension to subsidize City spending and fail to match his real spending levels with taxes. Residents of Illinois are already forfeiting most other state funding of vital programs in order to pay the annual State pension bills- it may be harsh but unless Chicago is willing to impose draconian cost cuts- let the City schools implode and at that point the State can step in and provide the loan guarantees to support the System work thru a bankruptcy filing- like it or not CPS is INSOLVENT and should be permitted to restructure thru a chapter 9 filing
Comment by SUE Friday, Feb 5, 16 @ 4:15 pm
===as the State has reduced education support===
Huh?
Comment by Rich Miller Friday, Feb 5, 16 @ 4:20 pm
>let the City schools implode
Rather than think about the impact on children and their families, try looking at it as a shrewd investor. Educate the heck out of these kids and make them good earners and good taxpayers and not dependent on state services. The children themselves are unimportant, but the money stuff is. /end-of-the-week snark
Comment by Earnest Friday, Feb 5, 16 @ 4:30 pm
===and at that point the State can step in and provide the loan guarantees===
You do realize that the state is two notches away from junk status?
Perhaps you should abandon your little fantasy world.
Comment by Rich Miller Friday, Feb 5, 16 @ 4:31 pm
Rich- the state has reduced funds to suburban schools for years all of which is made up with increased property taxes.
Comment by Sue Friday, Feb 5, 16 @ 4:32 pm
–Every time that I see “fix the funding formula” I read “I will pay more for Chicago and more overall, but less money will fund my area schools”. –
No, it means suburban and Downstate schools rather than the state will start paying for their pension costs.
The governor has shown he is not averse to withholding money from local governments, and he was hot for the locals’ share of the income tax.
A pension shift will help fix the wreckage of GRF, plus put fiscal strain on local districts, which serves the governor’s bankruptcy and local collective bargaining agendas.
Comment by wordslinger Friday, Feb 5, 16 @ 4:39 pm
Sue- the State has also been reducing funding to CPS every year. The reduction this year alone is $60 million.
Comment by Juice Friday, Feb 5, 16 @ 4:41 pm
..–like it or not CPS is INSOLVENT and should be permitted to restructure thru a chapter 9 filing.–
Gee, somebody should have told those guys who just lent them $725 million.
Words, particularly in finance, have specific meanings.
If the schools were insolvent, no one — employees or vendors — would be getting paid.
Has that happened?
Comment by wordslinger Friday, Feb 5, 16 @ 4:48 pm