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Mayor Rahm Emanuel will brief aldermen Friday on how his administration plans to fill the $129 million budget gap facing Chicago schools.
Schools will not see additional cuts this school year, according to a City Hall source.
Nor will the mayor propose any new taxes to fill the massive budget gap because there simply would not be enough time to implement a new tax, the source said.
“After a lot of hard work by the CPS and city financial teams, and many discussions with their lending partners, tomorrow we will brief aldermen on the district’s finances and the financial plan for the remainder of the CPS fiscal year,” said mayoral spokesman Adam Collins.
“Lending partners.” Hmm.
…Adding… Yep. Borrowing…
I'm told CPS financial relief plan will not include any new taxes. Likely to involve more borrowing, in lieu of a lack of $$ from the state.
— Paris Schutz (@paschutz) May 18, 2017
posted by Rich Miller
Thursday, May 18, 17 @ 3:13 pm
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I hate the way this is framed. Although the plan “will not include any new taxes,” how is the borrowing supposed to be repaid? By future new taxes. Can’t they just say that?
Borrowing most certainly results in new taxes. Reporters shouldn’t help spin this as anything other than committing future public money to pay for current spending. Worse, it’s spending money we don’t have, plus interest.
Comment by 47th Ward Thursday, May 18, 17 @ 3:21 pm
47th - you’re not wrong, but what is the alternative?
Comment by PJ Thursday, May 18, 17 @ 3:36 pm
I wonder if they need to provide collateral?
Comment by FormerParatrooper Thursday, May 18, 17 @ 3:41 pm
PJ, in this case, the alternative is for Paris Schutz to avoid using the preferred phrase: “the plan will not include any new taxes.”
I agree there is no alternative to the borrowing. I just hate the way it was clumsily reported in this tweet.
Comment by 47th Ward Thursday, May 18, 17 @ 3:42 pm
Rahm should just shut schools early. There is no money.
Comment by Ron Thursday, May 18, 17 @ 3:42 pm
Another option is to default on the next pension payment.
Comment by Ron Thursday, May 18, 17 @ 3:42 pm
If borrowing is part or all of the plan, I wonder how high the interest rate will be? I would guess that any borrowing will be very expensive for the tax payers of Chicago given the credit rating of both the City of Chicago and the CPS.
Comment by Small town taxpayer Thursday, May 18, 17 @ 3:46 pm
==I wonder if they need to provide collateral?==
How much is all that wrought iron fencing worth?
Comment by City Zen Thursday, May 18, 17 @ 3:47 pm
Agree with 47th ward that sometimes media adds to a false narrative. But so do politicians. I saw Dan Biss two weeks ago refer to public education being “free”. Afterwards I asked him if it was free, why $1800.00 of my property tax bill went to schools? He agreed that free might not be the right word!!
Comment by don the legend Thursday, May 18, 17 @ 4:42 pm
No different from Chris Lauzen, Chairman of the Kane County Board.
Comment by Anonymous Thursday, May 18, 17 @ 5:14 pm
Everybody borrowing because the wealthy get such a sweet deal. Citadel fortress is a big market maker in bonds is making good coin.
Comment by Yeah Thursday, May 18, 17 @ 5:19 pm
….How much is all that wrought iron fencing worth?…..
About 225 USD for a metric ton. Not including the cost if collection and shipping. That’s a lot of wrought iron.
Comment by FormerParatrooper Thursday, May 18, 17 @ 6:26 pm
“Borrowing” the old and new Illinois revenue source for our budgets we’re “broke” people “bankrupt” Who will be the collateral? You are! That’s why people are happily moving from this state. We’re broke.
Comment by Get real people. Friday, May 19, 17 @ 7:47 am
I would like to know how much is actually saved by closing the schools 2 weeks early. $460M?
Comment by James the Intolerant Friday, May 19, 17 @ 7:50 am
I miss the good old days when CPS would balance their 12 month budget with 14 months of revenue:
http://www.illinoisherald.com/articles/2014/q3/chicago-schools-fix-deficit-using-14-month-budget/
Comment by City Zen Friday, May 19, 17 @ 8:15 am
Get real people, I agree. Illinois government is just too expensive. It’s time rationalize it.
Comment by Ron Friday, May 19, 17 @ 9:01 am
I agree with 47th. Reporters shouldn’t help politicians push this irresponsible narrative.
However, I think it’s also on us–the voters–to stop expecting budgeting miracles. It’s just my experience, but I hear a lot of folks complaining in the same breath about wanting important governmental services to increase in quality and/or quantity while complaining about any proposed tax increases.
You really can’t have it both ways. And given Illinois’ and the City of Chicago’s precarious financial situations you might not be able to have it either way.
Comment by Chicago_Downstater Friday, May 19, 17 @ 9:01 am