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* Sun-Times…
The Chicago Public Schools will pay 6.39 percent — an extraordinary interest rate by short-term lending standards — to borrow $275 million it needs to make a mandatory payment for retiree pensions before a June 30 deadline.
That’s more than four times the interest rate a typical government would pay on the same borrowing deal, financial experts say.
It’s yet another sign of the dire financial condition of the nation’s third-largest public school system, which for months has had a “junk” credit rating from Wall Street financial institutions.
CPS officials secured the $275 million on Monday from J.P. Morgan. It’s the final chunk of cash needed to make the $721 million payment for teacher pensions that’s due at the end of the month, senior vice president of finance Ron DeNard said in a statement. […]
After fielding three competing bids, CPS chose J.P. Morgan to provide the so-called “grant anticipation notes,” which will be backed by state block grant money CPS is entitled to — but has yet to receive — in the ongoing budget stalemate. The interest rate will fluctuate monthly.
* Tribune…
“We are saddened that the Chicago Public School district is trading its future financial health for another short term easy fix,” Rauner’s spokeswoman wrote in a statement issued Monday night. “It has no one to blame high interest rates on other than the decades of mismanagement that created this crisis.”
* Huh? Let’s flash back to May…
But CPS lacks enough cash to make the full $716 million pension payment because state grants are delayed. CPS says it’s owed $467 million by the state.
That’s what the loan is all about — covering delayed state payments, Brown said.
The loan, called a Grant Anticipation Loan, is not particularly risky because it is short term and is backed by a dedicated revenue source — the state money. The expectation is that the state will eventually make good on what it owes Chicago.
So, CPS has to borrow money because the state is a deadbeat and can’t pay the almost half a billion dollars it owes. And the interest rate is high not only because of CPS’ credit problems, but because the state is teetering on junk bond status and can’t be trusted to pay its obligations.
Yet, the Rauner administration blames CPS.
* From Rep. Christian Mitchell (D-Chicago)…
Governor Rauner’s cruelty is, once again, costing poor kids in Chicago tens of millions of dollars that should be going into the classroom.
Last year, Bruce Rauner – a former finance “guru” - floated bankruptcy for CPS right before the district sought a bond issue, jeopardizing the ability of the district to continue operations. Rauner knew the consequences, and did it purposefully to hurt poor kids. Now Rauner plans to veto a school funding plan that helps every poor child in the state simply because it doesn’t do enough to hurt Chicago, whose poor children are overwhelmingly black and brown. And let’s not forget that Rauner’s budget ended funding for violence prevention, despite the tears he claims to shed for gunshot victims.
Whenever the question is “This will help poor children, should we…?” Bruce Rauner’s answer is: “Let them eat cake.” His unmitigated cruelty toward people of color is why his cabinet looks like a Trump family photo, and is part of why he’s a failed governor.
posted by Rich Miller
Tuesday, Jun 20, 17 @ 9:16 am
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I agree with Rep Mitchell
Comment by Real Tuesday, Jun 20, 17 @ 9:22 am
CPS has taken years to get in this shape. Blaming Governor makes no sense. CPS is reaping what is has sown.
Comment by Really Tuesday, Jun 20, 17 @ 9:23 am
===The interest rate will fluctuate monthly.====
At first that statement sounded pretty scary. Then I kept reading and understood it’s only for a short term. What is really ironic is Rainer bashing them for having to pay 6.35% while the state is racking up interest due to vendors at 12% annually. Talk about pot meeting kettle.
Comment by Anonymous Tuesday, Jun 20, 17 @ 9:25 am
==Rauner plans to veto a school funding plan that helps every poor child in the state simply because it doesn’t do enough to hurt Chicago==
Senate Bill 1 is the California plan of complete local control of school expenditures.
——————-
Is California’s big investment in needy students paying off? Few signs yet that achievement gap is closing
“When [Governor] Brown overhauled school funding four years ago, he wiped away decades of restrictive “categorical” programs that prescribed funding for everything from counselors to libraries.
“The new formula changed all of that by awarding blocks of money to districts and letting them decide how to spend it.” [JUST LIKE SB 1]
———————–
The Orange County (CA) Register (6/19) reports since California implemented a new public education funding system, the Local Control Funding Formula, in 2013, it has allocated about $31 billion “to schools with higher concentrations of foster youths, kids learning English and students from low-income families.”
The analysis said since 2013, the achievement gap
between low-income and high-income students has grown, echoing “a broader and growing concern” among civil rights groups, researchers, and state legislators about the LCFF.
Comment by winners and losers Tuesday, Jun 20, 17 @ 9:28 am
With all due respect to Representative Mitchell, I think he meant to say “a former vulture capitalist”, not a “former financial guru.”
Comment by Phil Tuesday, Jun 20, 17 @ 9:29 am
I would like to see a breakdown of the $500 million that the state owes CPS. Does that include the $215 million that was contingent upon pension reform? Because that never became law. GSA payments aren’t delayed. So is it Block Grant funding?
The Comptroller should put payments for CPS to the front of the line. She has the power to prioritize payments.
Comment by Anonymous Tuesday, Jun 20, 17 @ 9:30 am
An interest rate 4 times the usual rate and, it changes monthly? JP Morgan just had a nice payday.
How many other school districts are going to start using this type of loan, in an effort to keep their doors open?
Further proof that the private equity bust-up artist bought himself a top political office so that he could make sure his friends and former co-workers could make $$$ slopping at the public trough, while promoting Social Darwinism.
Comment by Lynn S. Tuesday, Jun 20, 17 @ 9:30 am
===The Comptroller should put payments for CPS to the front of the line===
Ah, yes. Blame it on the bookkeeper. No money in the checking account, but the bookkeeper is at fault.
Also, state law and federal and state court decrees/orders decide who gets paid first, not her.
Comment by Rich Miller Tuesday, Jun 20, 17 @ 9:33 am
Really, you’re in that category of some of the people, all of the time that Rauner counts on.
Read the post: these grant anticipation notes are to cover promised state grants for this fiscal year. If the promised state grants are made on time, the borrowing is unnecessary. The promised state money is the security on the notes.
You’re aware that the state has shorted K-12 one billion dollars this year? For the children, I suppose.
Comment by wordslinger Tuesday, Jun 20, 17 @ 9:38 am
CPS is in trouble regardless of who does what. Whether self-inflicted to themselves, the city or state, it’s tough times ahead.
“…will be backed by state block grant money CPS is entitled to…” That seems a little misappropriating. I didn’t realize there was a block grant for CPS pension obligations.
Comment by cdog Tuesday, Jun 20, 17 @ 9:41 am
Why does the Rauner administration blame CPS?
Because they caved to CTU by continuing to pick up 7% of the 9% of the employee share of the pension contribution. Forest Claypool insisted the pickup would be end but failed to negotiate a fair deal for taxpayers.
They passed an unbalanced budget expecting a bailout from Springfield to cover the extra pension contribution which was on the table if the Democratic Cullerton statewide pension reform was passed as agreed.
Unlike Police and Fire and other city and state workers, CTU and CPS will not address their unaffordable pensions and expect a state bailout.
Perhaps the uninformed will be fooled by Representative Mitchell’s scapegoating and believe CPS was in tip top shape 2 1/2 years ago.
Comment by Lucky Pierre Tuesday, Jun 20, 17 @ 9:42 am
This is on CPS/Chicago– they own their pension fiasco and their decades of financial missteps which continue almost daily.
Comment by Deft Wing Tuesday, Jun 20, 17 @ 9:43 am
Rauner a financial guru? let’s examine that. When he became governor he put his finances into a blind trust. Since then his income tripled. So he must have been mis-managing his own money just like he is doing to the state.
To the post: this statement was made on the day of his “Unity Speech” com’on man
Comment by Really Tuesday, Jun 20, 17 @ 9:43 am
-Blame it on the bookkeeper.-
I’m not doing that. I am actually inquiring as to what money is owed CPS, as the article linked doesn’t outline it. It says, “CPS says it’s owed $467 million by the state”. And if they are owed money then they can be moved to the front of the line if needed.
I specifically remember House debate on the FY16 spending plan where the House Democratic Caucus made the specific point that Comptroller Munger can prioritize payments to reflect the needs of the state while trying to justify their out of balance spending plan.
The knife cuts both ways.
Comment by Anonymous Tuesday, Jun 20, 17 @ 9:50 am
===This is on CPS/Chicago===
That’s like saying, “This is all on Lutheran Social Services of Illinois for not properly preparing for getting the shaft from the state.”
Comment by Rich Miller Tuesday, Jun 20, 17 @ 9:51 am
===Perhaps the uninformed will be fooled by Representative Mitchell’s scapegoating and believe CPS was in tip top shape 2 1/2 years ago.===
Chance, when he decided to go after Rauner with #DoYourJob… was that the uninformed being fooled?
You keep forgetting, Rauner said he vetoed the $215 million emotionally. That doesn’t sound like someone being honest. That sounds like someone trying to fool people that he (Rauner) actually cares.
Why does Rauner continually try to “give” that $215 million as a deal piece, because Rauner feels that $215 million is a gift? Rauner knows, Chance can gin up more against Rauner then the entire Democratic apparatus has done in 2 1/2 years.
#DoYourJob Gov. Rauner. Thinking you can pass #DoYourJob on the Dems won’t work. It might bring Chance out again.
Comment by Oswego Willy Tuesday, Jun 20, 17 @ 9:51 am
===…they own their pension fiasco and their decades of financial missteps which continue almost daily.===
… and Bruce Rauner donated to Daley and Rahm.
Guess Rauner thought Daley and Rahm were doing great! lol
Comment by Oswego Willy Tuesday, Jun 20, 17 @ 9:53 am
That Trump family photo comment should sting a little bit, probably doesn’t, but should.
Comment by Gruntled University Employee Tuesday, Jun 20, 17 @ 9:56 am
You keep forgetting that the leaders promised to pass statewide pension reform and get the teachers to contribute the same as other state workers for their cadillac pension benefits. They failed on both counts but you expect no consequences?
Doesn’t everyone have to do their job? Does Representative Mitchell have to do his job by voting on a budget that can be reconciled with the Senate and signed by the Governor?
What if every school district required the same pension bailout but did not do their part to manage their budgets responsibly?
Comment by Lucky Pierre Tuesday, Jun 20, 17 @ 9:56 am
===I am actually inquiring===
Sigh. Either read better or use the Google. It’s grant money. The state is behind $1.1 billion as of a month ago on doling out that K-12 cash. $467 million is Chicago’s share.
Comment by Rich Miller Tuesday, Jun 20, 17 @ 9:58 am
Some of you guys don’t get the term “grant anticipation notes.”
This CPS borrowing is backed by anticipated state grants. The state will effectively be paying it back.
If you haven’t noticed, the state is borrowing a lot these days — that’s what that backlog of bills is, borrowing frowoven does at a very high juice rate.
Borrowing from vendors is up more than $10B under Rauner and is taking off like a rocket.
So maybe confused Superstar lectures about fiscal responsibility are out of order.
Comment by wordslinger Tuesday, Jun 20, 17 @ 9:59 am
=I’m not doing that. I am actually inquiring as to what money is owed CPS, as the article linked doesn’t outline it. It says, “CPS says it’s owed $467 million by the state”. And if they are owed money then they can be moved to the front of the line if needed.=
Seriously, if you do not know what you are talking about you shouldn’t.
The money owed to CPS is for the same reason every other school in the state is owed money.
The state has failed to make it’s required Mandated Categorical payments or MCAT’s. The money is for services schools are required to provide by the state and/or the federal government. Services like transportation, special education, lunch programs etc.
The state cut transportation (without much notice by the press) by 50% and then only made one payment of four that were scheduled. Thus 25% of 50% of what schools should get.
This under payment and delayed payment has been going on for the last seven years in some form or another.
What shocks me is two things:
1- by failing to provide the special ed payments Illinois is in serious jeopardy of failing to meet Maintenance of Effort or MOE. That could mean a big loss of Federal matching funds.
2- CPS really thinks they will get all of the money owed. We have all pretty much been told we won’t. If the revenue increases are not made retroactive you can count on it.
This shortage and this particular need to get a loan is absolutely on Rauner. This is a matter of paying current bills not old debt.
Comment by JS Mill Tuesday, Jun 20, 17 @ 10:03 am
=CPS has taken years to get in this shape. Blaming Governor makes no sense. CPS is reaping what is has sown.=
Sure CPS has responsibility for the situation they find themselves in. But Rauner is the governor today and he must govern in the present and deal with the realities good or bad facing him. He’s not responsible for prior mistakes or malfeasance. But he is responsible for finding a way forward. That’s what happens when you sit in the big chair. As others have said, “governors own”. Same as it ever was.
Comment by Pundent Tuesday, Jun 20, 17 @ 10:07 am
Hard pressed to have any sympathy for CPS:
2016 tax rates (School Districts only:
District 2016 Rate 2015 Rate
CPS 03.726 03.455
Unit 303 05.766 05.929 (St. Charles)
Unit 220 04.538 05.126 (Barrington)
Unit 46 06.837 07.947 (Bartlett)
Those are just a few….
Note: I didn’t add any Grade School (K-8) and High School (09-12) districts together. Too confusing.
Generally a higher composite tax rate than just a typical Unit (K-12) school district.
Point is, Chicago Public Schools have been skating on their real estate taxes compared to other local school districts.
When Chicago real estate is paying the same real estate tax rates for CPS that other jurisdictions do around the state, then they have a case. Until then, looks to me like they are crying fake tears.
Comment by Judgment Day Tuesday, Jun 20, 17 @ 10:19 am
JD, are commercial rates included in your list? They pay at a higher rate in Cook.
Comment by Rich Miller Tuesday, Jun 20, 17 @ 10:20 am
The state owes all of the other school districts in the states money just like they do to CPS. Obviously, other districts don’t get the same dollar value of money that CPS does, but the fundamental theory is the same - - the states owes mandated categorical monies to all districts and is not paying its obligations. What you see going on in CPS will, unfortunately, be played out throughout the state in much the same manner.
I am not defending CPS, just merely pointing out that as many of you have posted, the school districts are getting the shaft from the state and suffering the high interest rates if the school district does need to borrow.
Comment by East Central Illinois Tuesday, Jun 20, 17 @ 10:28 am
The school house is on fire, but Firecheif Rauner and his supporters are enjoying the schadenfreud so much they cannot do their elected duties to put out the schoolhouse fire.
Instead of conducting the investigation AFTER putting out the fire, Rauner and ILGOP claim that no help should come to put out the fire because the schoolhouse has a fire every year. Instead of putting out the fire, They walk away and let the kids, teachers, communities and state suffer instead.
You cannot be a conservative AND blind to the market value of communities with burning schoolhouses. Letting schools burn are bad for everyone. Does anyone here think that the fact that Chicago doesn’t support ILGOP has an impact why ILGOP and Rauner turn their backs?
ILGOP and Rauner have given up on Chicago. Although they want powerful statewide political offices, they seem to loath Illinois’ largest city. Consequently Chicago doesn’t elect these heartless partisans, and the only statewide office for ILGOP is held by a heartless, schadenfreude loving Rauner.
Comment by VanillaMan Tuesday, Jun 20, 17 @ 10:34 am
===What if every school district required the same pension bailout===
Every other school district is already getting a pension bailout. Are you really that dense?
Comment by Rich Miller Tuesday, Jun 20, 17 @ 10:38 am
Rich, all properties receive the same rate on their tax bill, whether commercial or residential.
In Cook County, the assessment levels are different between categories. So the rate on the tax bill is the same, but the effective tax rate is wildly different between the two. The numbers that JD is using are the rates on the bills.
(Though he did fail to mention that CPS can’t raise its levy on its own, it would have to go to a referendum. Granted, CPS should have done that years ago, but it passing cannot be taken for granted.)
Comment by Juice Tuesday, Jun 20, 17 @ 10:41 am
===You keep forgetting that the leaders promised to pass statewide pension reform and get the teachers to contribute the same as other state workers for their cadillac pension benefits. They failed on both counts but you expect no consequences?===
For the 4,317th time.
If that is your argument, then you are cheering that Rauner chose to purposely hurt Chicago students, emotionally.
Our host here even tried to explain… to you… how this all went down. Yet, you want to blame CPS and want “consequences” for a time frame that never closed, and you want Rauner to be proud of the veto, yet not own that same veto. You have no case here.
===Doesn’t everyone have to do their job? Does Representative Mitchell have to do his job by voting on a budget that can be reconciled with the Senate and signed by the Governor.===
… and yet, when Rauner met with Chance, pleading his (Rauner’s) case, Chance recognized Rauner as failing Chicago students. Rauner met with Chance… and still… it was “Governor! #DoYourJob”. That’s the meme.
This… please, be honest to the argument(s)
===- Rich Miller - Tuesday, Jun 20, 17 @ 10:38 am
===What if every school district required the same pension bailout===
Every other school district is already getting a pension bailout. Are you really that dense?===
Comment by Oswego Willy Tuesday, Jun 20, 17 @ 10:50 am
City leaders have know this day was coming for decades yet They continue to cower the CTU for the votes. And have asked springfield for bail outs for decades too (and get them piecemeal). The only really rotten part is the waste of money being used to pay the interest.
Comment by the cardinal Tuesday, Jun 20, 17 @ 10:51 am
“(Though he did fail to mention that CPS can’t raise its levy on its own, it would have to go to a referendum. Granted, CPS should have done that years ago, but it passing cannot be taken for granted.)”
————
Actually, CPS can, but they are capped. And there’s actually 2 ways to setup referendums. One is just a straight rate increase. The second way is to do a one year CPI increase (which is actually the way to go).
Btw, referendums are never a sure thing. But that’s the rules that apply to all the rest of us outside of Chicago. They might have to try it.
What it all comes down to is that CPS fiscal management over the years has been a complete, utter total failure.
I used the actual tax rates (all represent a millage rate per $100 of taxable value) tell the tale, because they are the one constant with the real estate tax structure between the City of Chicago, Cook County, and the rest of the state.
Comment by Judgment Day Tuesday, Jun 20, 17 @ 10:56 am
6.39% is the new “Rauner tax rate”.
Comment by Workin' Tuesday, Jun 20, 17 @ 10:56 am
CPS failed. CPS failed to anticipate that Rauner would use them as leverage to achieve his non-budgetary goals.
CPS are a bunch deadbeats for counting on the state funding that they have received year after year.
And this saddens the Guv.
You see he had the foresight to plan for this crisis. He is personally foregoing his state required payment this year (he has mentioned this once or twice). He can get by without state funding. Why can’t CPS?
Heck, for that matter, why can’t we all just passively make $190M a year off of a blind trust. The state would be so much better off if we could.
Comment by Henry Francis Tuesday, Jun 20, 17 @ 11:05 am
Henry F…. So who skipped out of the pension payments ? CPS or the city leadership? The City wanted control of CPS and legislated their way to it under Gov Big Jim. It is convenient to say CPS skipped out on payments but the various bosses at CPS ain’t skipping out of numerous $10s of millions in payments without the 5th floor okee dokey. Trouble is the Guv called their bluff and is sticking to his guns. Unfortunately for schools and students this is power politics at its extreme and BR isn’t blinking. The City has the ability to tax at suburban levels but wont because they know where most of the money will go (CTU salary demands) and not necessarily to the areas its needed most. When will the next CTU strike begin? As soon as they get the first notice of layoff in the class room.
Comment by Anonymous Tuesday, Jun 20, 17 @ 11:43 am
@- Juice - Tuesday, Jun 20, 17 @ 10:41 am:
===Rich, all properties receive the same rate on their tax bill, whether commercial or residential.
In Cook County, the assessment levels are different between categories. So the rate on the tax bill is the same, but the effective tax rate is wildly different between the two. The numbers that JD is using are the rates on the bills.
(Though he did fail to mention that CPS can’t raise its levy on its own, it would have to go to a referendum. Granted, CPS should have done that years ago, but it passing cannot be taken for granted.)===
Very complex situation. Both the tax rates AND residential assessments are lower in Chicago. That more then makes up for their teachers pension tax. Also, Chicago has a lot more tax-exempt property (CHA) that doesn’t help things.
Chicago does need a referendum to increase their own tax rate, just like most school districts in the collar counties have done, if they want to improve their schools. That being said however, Rauner’s antics of deliberately saying things like “CPS needs to go bankrupt” right before a CPS bond sale shows Rauner’s true character. Rauner’s buddies rake in higher interest rates on the bonds, while CPS is forced to pay more. This is very wrong for Rauner to do this sort of thing, and the Republican legislators should stop taking money from him, and pass a legitimate budget with adequate revenue to pay the state’s obligations.
Comment by DuPage Tuesday, Jun 20, 17 @ 11:43 am
===Trouble is the Guv called their bluff and is sticking to his guns.===
So it’s clear;
With that logic, Rauner then owns the consequences for “calling the bluff” and then choosing not to counter that.
See, governors own their vetoes. No one else can veto anything or force a veto or hold a veto. Governors own their vetoes. Not my rule.
Chance made it clear. The emotional veto, Rauner owns that so when Rauner couldn’t make his case to Chance, Chance called Rauner’s bluff… #DoYourJob, Governor.
So, just keep all that in mind with “Rauner called the bluff”. Ok, then the call is owned by the Governor. Same as it ever was.
Comment by Oswego Willy Tuesday, Jun 20, 17 @ 11:50 am
—Trouble is the Guv called their bluff and is sticking to his guns. —
This. This all day. OW is so right on.
Rauner’s sycophants cannot celebrate this position and at the same time say ‘but Madigan’.
Comment by don the legend Tuesday, Jun 20, 17 @ 12:17 pm
Not included in Rich’s excerpts from the Tribune was the fact that CPS could not borrow all the money it needed to. Here is the relevant passage: “…the district said it would pursue another $112 million loan to make up the difference. The district said the $275 million ‘creates sufficient cash’ for CPS to meet its obligations to the Chicago Teachers’ Pension Fund, but did not explain how that was possible.
I believe that Mayor Emanuel and the Democrat leadership in the General Assembly are banking on Rauner losing power in November 2018. Then CPS might be given a soft landing once it simply can’t borrow anymore. Optimistically an oversight body would be imposed on CPS by a new Democrat Governor with the support of the legislature that would effectively guarantee CPS debt by reissuing it and imposing softer austerity on CPS than a reelected Governor Rauner would. In either case the banks and the bond holders will get their money as they did in 1979 when CPS went belly up once before.
Comment by Rod Tuesday, Jun 20, 17 @ 12:40 pm
Last I checked, CPS’ annual budget is about $5 billion.
The states owes CPS $467 million. Roughly 10 PERCENT of the annual budget.
That’s a lot of money to not have. Any entity that loses ten percent of its budgeted revenue is going to have a tough time.
Comment by Jerry 101 Tuesday, Jun 20, 17 @ 12:44 pm
===Any entity that loses ten percent of its budgeted revenue is going to have a tough time. ===
Yep, but you’d never know it by reading the MSM coverage today.
Comment by Rich Miller Tuesday, Jun 20, 17 @ 12:47 pm
You are doing your readers a disservice by blaming the state for the mess CPS is in.
CPS has been a disaster for years.
Education is a locally controlled mission and the Democratic Machine that has run Chicago for 70 years has failed these kids and owns this mess completely.
Comment by Dogleg Bumstead Tuesday, Jun 20, 17 @ 2:06 pm
Illinois would be wise to look at the Grand budget compromise Pennsylvania just made and try to do something similar. The IL legislature needs top get a clue
Comment by Gogleg Bumstead Tuesday, Jun 20, 17 @ 2:09 pm
===You are doing your readers a disservice by blaming the state for the mess CPS is in. ===
But I didn’t. Just this particular mess because the state is such a huge deadbeat. CPS is owed almost 10 percent of its operating budget by a state that won’t pay its bills.
It’s generally useless attempting to explain this to folks like yourself, however because, maybe, I dunno, black people are involved.
Comment by Rich Miller Tuesday, Jun 20, 17 @ 2:12 pm
==and owns this mess completely==
That’s nice. Now what? Stick it to the kids out of spite for CPS? What a great plan.
Comment by Demoralized Tuesday, Jun 20, 17 @ 3:22 pm
“It’s generally useless attempting to explain this to folks like yourself, however because, maybe, I dunno, black people are involved.”
That’s not fair. It’s obvious that CPS has not been managed properly for decades, in reasoning as to why that has to be interpreted as a racist position is not helpful.
Comment by cdog Tuesday, Jun 20, 17 @ 5:00 pm
–That’s not fair. It’s obvious that CPS has not been managed properly for decades, in reasoning as to why that has to be interpreted as a racist position is not helpful.–
So what’s you and yours reasoning for completely ignoring the substance of the post: the fact that CPS is issuing short-term Grant Anticipation Notes because the state is short on its grants this fiscal year?
You’re given specifics on this particular issue, but you want to talk about “decades and decades.”
The state shorted CPS 10% of their budget this fiscal year. They’re issuing short-term notes to cover that shortfall. The notes are covered by the anticipated state grants.
What does that have to do with “decades and decades?”
Comment by wordslinger Tuesday, Jun 20, 17 @ 5:32 pm
And it is pretty simple for you Rich to accuse anyone that disagrees with you of racial motives. Typical Democrat. There are districts in the suburbs that could soldier on with a 10% revenue shortfall because they are competently managed.
Comment by Really Tuesday, Jun 20, 17 @ 6:52 pm
–There are districts in the suburbs that could soldier on with a 10% revenue shortfall because they are competently managed.–
LOL, no, because they choose to tax themselves at a rate that derives 90%-plus of their revenues from local sources.
Comment by wordslinger Tuesday, Jun 20, 17 @ 7:39 pm
Word, CPS has a junk rating on their bonds. That did not happen because of this most recent need for $275 million.
I hear they’re paying 9% but nobody wants to buy them. You don’t earn that beating with a few recent financial blunders.
(And this is not a racist conclusion. I have no idea of the racial composition of people running CPS currently, or in the past. And,if you’re a normal person, you don’t care.)
Comment by cdog Tuesday, Jun 20, 17 @ 9:36 pm
CDog, if youre a normal person, you do the reading before commenting multiple times.
The debt issued was grant anticipation notes, not GO bonds. The security on the notes is the late state grant. On this issuance, the premium demanded in the market reflects the lack of confidence in the state making good on the grant.
Comment by wordslinger Tuesday, Jun 20, 17 @ 9:58 pm