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CTU says contract will cost $100 million more than the one they rejected

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Illinois

The cost of the proposed teachers’ contract with the city’s public school system amounts to about $8.9 billion over four years — a deal that would cost taxpayers at least $100 million more than the one teachers rejected in January, the Chicago Sun-Times has learned.

“I would say this deal has about $100 million more in it,” said Robert Bloch, a longtime attorney for the Chicago Teachers Union who was at the bargaining table late Monday when a strike was averted minutes before a midnight deadline.

The additional cost of the four-year contract proposal compared to the previous offer might even go beyond that, Bloch noted, saying the Chicago Public Schools’ “finances are so opaque, it’s hard to know exactly what they’re spending, what the cost is. […]

Questioned by the Sun-Times about the potential for the new contract to cost more than the one the teachers rejected in January, a mayoral confidant confirmed there would be an increase but contextualized it as relatively small given that the four-year deal would cost about $8.9 billion — or about $2.2 billion a year.

That is relatively small, but since Bloch is right about the opaqueness of CPS finances, we may never really know for sure.

And, by the way, the $100 million figure is just about the size of the district’s pension pickup, which the union mostly maintained in its new contract.

* Meanwhile, from the Bond Buyer…

They also have spurred questions over whether or not the [TIF surplus] revenue represents a non-recurring revenue stream that can’t be counted annually to cover an annual operating expense, a position Emanuel seemed to previously back in statements.

That position has now changed.

“I don’t see TIF surplus at this stage as a one-time revenue,” city budget director Alexandra Holt said when asked about the issue during a meeting with Crain’s Chicago Business’ editorial board. “I see it as an ongoing revenue.”

Much of the surplus funding being freed up comes from frozen, canceled, and expiring TIFs as well as the “declared” amount.

Holt projected that surpluses will be available for well over a decade, and therefore should not be considered a so-called one-shot.

* And from DNAInfo…

Chicago Public Schools CEO Forrest Claypool is “unfit” to lead the district, Chicago Teachers Union Vice President Jesse Sharkey told DNAinfo Chicago Thursday.

Three days after the teachers union reached a tentative agreement on a new contract with the district, Sharkey, the union’s second in command, said Claypool had “run the system off the edge of a cliff.”

“He is unfit to be CEO,” Sharkey said. “He has earned the contempt of teachers and parents across the city” by threatening mass layoffs and deep program cuts to schools.

Sharkey, however, stopped short of calling for Claypool’s ouster.

posted by Rich Miller
Friday, Oct 14, 16 @ 12:18 pm

Comments

Wow, they get a deal and Sharkey still throws out the red meat.

Comment by Retired CTA Bus Driver Friday, Oct 14, 16 @ 12:26 pm
Real gracious in victory for that extra hundred mil there Jesse.

Comment by Ron Burgundy Friday, Oct 14, 16 @ 12:36 pm
After caving in to the CTU, Rahm may agree Claypool is unfit.

Comment by Cheryl44 Friday, Oct 14, 16 @ 12:37 pm
Consistent leadership at the top of CTU, that’s for sure. Uncouth all the way.

Comment by A guy Friday, Oct 14, 16 @ 12:47 pm
To all the Bernie type voters out there whose unquestioned support of CTU make it impossible for CPS to truly play hardball during negotiations. Thank You. And I hope you enjoy your soon to be new and higher taxes

Comment by Groucho Friday, Oct 14, 16 @ 1:03 pm
Sharkey should be ousted, that is not how you conduct yourself as a professional.

Clearly CTU leadership has failed to understand the new paradigm in education.

Alliances between management and labor are critical in success of schools where as adversarial relationships are killing us.

Their old school mentality of us versus them has clearly missed the boat.

In addition, my experience at the bargaining table is that teacher teams that are responsible for bargaining typically do not have the resources or experience to accurately understand and apply school finance information (which is not their fault given their focus is rightly placed on student instructions. I have my doubts about the $100 million figure.

Comment by JS Mill Friday, Oct 14, 16 @ 1:08 pm
How many cliffs can one system have?!

Perhaps both Claypool and Sharkey can get in a car with Toonces the Driving Cat. It’s the car with license plate CONTMPT.

Comment by City Zen Friday, Oct 14, 16 @ 1:11 pm
=In addition, my experience at the bargaining table is that teacher teams that are responsible for bargaining typically do not have the resources or experience to accurately understand and apply school finance information (which is not their fault given their focus is rightly placed on student instructions. I have my doubts about the $100 million figure.=

You don’t think Robert Bloch knows this stuff? You may want to Google him.

Comment by Carhartt Representative Friday, Oct 14, 16 @ 2:13 pm
The CTU’s team of Lewis and Sharkey are effective. Lewis casts the calm voice of reason. While Sharkey plays the pit bull at her back. He even has the right surname.
Meanwhile, the magical thinking of endless revenue continues.

Comment by Cook County Commoner Friday, Oct 14, 16 @ 2:26 pm
“Lewis casts the calm voice of reason.”

I bet the ‘murder mayor’ thinks that’s all relative.

Comment by Ron Burgundy Friday, Oct 14, 16 @ 2:44 pm
Sorry for this long post Rich, but this is not simple. Vice President Sharky’s comments about Claypool were designed to help offset a movement in the union to vote down this contract, some of Rich’s readers do not seem to grasp that. Many members are hot because as the Sun Times article indicated “During a meeting Tuesday with the Chicago Sun-Times editorial board, Emanuel denied that the teachers union got the better end of the deal again. The mayor argued that a pay freeze for veteran teachers during the first two years of the contract offset the cost of the pension concession.”

So if everything falls apart in year three what do the teachers get? Also be aware a contract is not a contract with CPS or for that matter any other school district, because the school code prohibits contracts that would cost more than the CPS Board can appropriate in any one year. Specifically the school code says: “No contract shall be made or expense or liability incurred by the board, or any member or committee thereof, or by any person for or in its behalf, notwithstanding the expenditure may have been ordered by the board, unless an appropriation therefor has been previously made. Neither the board, nor any member or committee, officer, head of any department or bureau, or employee thereof shall during a fiscal year expend or contract to be expended any money, or incur any liability, or enter into any contract which by its terms involves the expenditure of money for any of the purposes for which provision is made in the budget, in excess of the amounts appropriated in the budget. Any contract, verbal or written, made in violation of this Section is void as to the board, and no moneys belonging thereto shall be paid thereon.” 105 ILCS 5/34-49

The truth is teachers could have their contract voided if CPS does not have the money to pay up on this largely back loaded contract. They now understand this because it happened before to them. VP Sharky is trying to convince his members the CTU still knows who they are dealing with and what Mr. Claypool got away with at the CTA and the big hits the Amalgamated Transit Union Local 308. At the CTA based on the contract Claypool negotiated newly hired part-time workers who are paid at a lower rate were given priority over veteran employees to pick many of the work shifts. When some of the new workers called in sick, the senior full-time workers were assigned on short notice to fill in on shifts that the longtime workers should have been allowed to fill based on the contract. Robert Kelly, president of ATU Local 308 talked about Claypool worse than Sharky did saying in 2013: “Forrest Claypool knows one thing: He knows how to lie. That’s what he’s good at. He’s a liar. He’s a henchman.”

Comment by Rod Friday, Oct 14, 16 @ 2:46 pm
According to David Orr -

City of Chicago Total TIF Revenue 2015:

$460,637,730.50

But the schools need money?

Comment by TinyDancer(FKASue) Friday, Oct 14, 16 @ 4:21 pm