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Cutting classroom money while protecting pension money

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Illinois

Rauner’s changes include eliminating a $250 million block grant Chicago schools have received for years that critics said the city would not get if the money was distributed through existing school aid formulas.

Rauner’s changes would still give Chicago schools $215 million to help with its teacher pensions. Chicago is the only school district in the state not covered by the state-funded Teachers Retirement System.

However, Rauner’s change would make the Chicago pension payment part of state pension law rather than the state’s school code. The seemingly innocuous change will require a follow-up budget bill to implement, Manar said.

* This is so weird. The governor moved the $215 million for pension money into another state statute after spending weeks “messaging” against the Chicago teacher pension money, and after vetoing that same $215 million in December of 2016…

Republican Gov. Bruce Rauner’s veto of a bill that would have eased Chicago Public Schools’ massive pension burden threatened to blow a $215 million hole into a budget that has been criticized by bankers and civic groups for its reliance on uncertain state assistance.

On the stump, Rauner connected that block grant to CPS pensions, but his own education czar admitted that CPS was using the block grant to educate kids…

In reality, the CPS block grant has no formal relationship to pensions. All districts receive state reimbursement for seven “categoricals” above what they receive in General State Aid. Every district except Chicago has to submit vouchers to get reimbursed for these categoricals. But since 1995, Chicago has been reimbursed via a block grant, based, at least in part, on the reality that submitting claims for thousands of different students was burdensome. Over the years, as CPS enrollment has declined, the block grant resulted in the district receiving $250 million more than it would if it had to submit vouchers for reimbursement.

Rauner’s education czar Beth Purvis has said those extra funds have been audited, and aren’t being misspent. “There’s no implication that CPS is misusing those funds in any way, shape or form,” she told me in May. “We believe that they’re using them for the educational costs of educating those children.”

* So, the governor cut classroom money for CPS and kept the pension money in place (albeit in another statute) - the exact opposite of what he said he actually did…

“What the amendatory veto prevents is a diversion, an unfair diversion, removal of money, from the classroom to fund a broken pension system that deserves to be reformed and that deserves to be treated the same way all teachers pensions are treated,” Rauner said.

posted by Rich Miller
Wednesday, Aug 2, 17 @ 10:36 am

Comments

I am so confused. why would anyone be against paying CPS pensions in the same bucket as the rest of the state. Everyone keeps bemoaning that the state doesnt pay them for CPS like they do for the rest of the state now the proposal is to make them different in a different way….

Comment by Mike Wednesday, Aug 2, 17 @ 10:39 am
I know I am partisan. I say this without my partisan hat on. Any governor or legislative leader needs someone with experience here in Springfield. You can’t “drain the swamp” and expect things to run smoothly. Experience counts for a lot here. Rauner needs to hire someone with over 20 years of experience to help him.

Comment by 360 Degree TurnAround Wednesday, Aug 2, 17 @ 10:41 am
===the exact opposite of what he said he actually did…===

The most charitable way to describe this is that the Governor is simply incompetent and doesn’t know what he is doing.

Comment by 47th Ward Wednesday, Aug 2, 17 @ 10:42 am
Because . . . Madigan?

Comment by Keyrock Wednesday, Aug 2, 17 @ 10:42 am
Manar is not necessarily correct. The Governor’s AV makes the contribution to CTPF a continuing approp, so nothing else would need to be done to fund it.

What is not clear to me is whether the Governor is proposing to reduce the evidence based model line item by that amount, thus very clearly taking money “out of the classroom”, or whether he wants to leave it as is and spend $220 million more than the budget he claims is unbalanced was already spending.

Comment by Juice Wednesday, Aug 2, 17 @ 10:43 am
was this another mistake or 15D Chess?

Comment by JohnnyPyleDriver Wednesday, Aug 2, 17 @ 10:45 am
Juice:

He re-allocated the money for the CPS block grant to all of the other school districts.

Comment by Demoralized Wednesday, Aug 2, 17 @ 10:47 am
1. Elect dilettante billionaire who buys his way into election.

2. Believe his lie that only he can make massive, sweeping changes to a complex system.

3. Suffer consequences.

4. In future, pay attention to what politicians do, not what they say.

Comment by Blue Bayou Wednesday, Aug 2, 17 @ 10:49 am
47th Ward, you’re better people than I, then, because I’m calling it as a blatant lie, like many of his other statements have been regarding the narrative of his time in office.

When you have to make up figures, stories, and statements to support your position, that’s a problem.

Comment by Fixer Wednesday, Aug 2, 17 @ 10:51 am
The political messaging is simple: “The Dems forced a tax increase, and they are trying to force taxpayers to bailout Chicago teacher pensions.”

That it doesn’t match the governing details, won’t make much of a dent in the public consciousness.

Comment by walker Wednesday, Aug 2, 17 @ 10:51 am
Walker, you honestly think a majority of people are falling for Rauner’s BS?

Tony Arnold on NPR this morning didn’t give enough detail on how poorly it’s going for the Gov, but I think it’s percolating across the state. Finally.

Is he still getting traction downstate?

Comment by Blue Bayou Wednesday, Aug 2, 17 @ 10:56 am
the amateur hour continues.

Is this worth a veto override, in whole or part?

Comment by Capitol View Wednesday, Aug 2, 17 @ 10:57 am
But it took the experts 20 years fix the school funding system according to Senate President Cullerton.

Comment by Arock Wednesday, Aug 2, 17 @ 11:00 am
The question I am asking myself at this point is, is this AV so unbelievably bad that it will move some republicans in the legislature to vote for override? I really thought there would be no override.

Comment by Ducky LaMoore Wednesday, Aug 2, 17 @ 11:04 am
Rauner is trying to pull a fast one on the low-information voter. He desperately needs a victory. It’s basically a shell game where you move the object from one shell to another using a diversion.

Comment by Lamont Wednesday, Aug 2, 17 @ 11:07 am
Why is no one talking about how his add-ins are potentially unconstitutional? I thought AV only gave the Gov power to strike-out, not add in. Am I wrong???

Comment by no name Wednesday, Aug 2, 17 @ 11:08 am
Chicago Democrats who designed the worst in the nation school funding formula and did not try to improve it during their 12 years of total control of state government now want to force their version of school funding on a Republican Governor with a last minute change that benefits Chicago.

They criticize Governor Rauner for not settling for a bill he agrees with 90% of but fail to mention they need his signature and only got 1 Republican vote for SB1

Sounds like they will have to come to the realization they do not have total control of Springfield and accept less than 100% of what they want on the school funding bill

After two and a half years they still don’t acknowledge there is a Republican Governor

Comment by Lucky Pierre Wednesday, Aug 2, 17 @ 11:09 am
== I thought AV only gave the Gov power to strike-out, not add in. ==

Depends. In the past, the IL SC has said the changes can be more than technical, but how much more hasn’t been clearly defined.

Comment by RNUG Wednesday, Aug 2, 17 @ 11:14 am
“a broken pension system that deserves to be reformed and that deserves to be treated the same way all teachers pensions are treated”

One reasonable way to read that is that Rauner believes that CTPF “deserves” to be funded 100% by the state, including the existing deficit.

I doubt that’s what he meant, but it appears to be what he said.

Comment by Chris Wednesday, Aug 2, 17 @ 11:15 am
== I thought AV only gave the Gov power to strike-out, not add in. ==

Adding, personally, I think the shift of the CPS pension money out of this bill and into a statute that this bill does not specifically address is probably a line too far. Be interesting to see if the AV is declared invalid by the GA because of that or if someone challenges that change in court.

Comment by RNUG Wednesday, Aug 2, 17 @ 11:18 am
– the governor cut classroom money for CPS and kept the pension money in place (albeit in another statute) - the exact opposite of what he said he actually did…–

I always thought Rauner knew what he was doing, as appalling as it was.

In the last month, it’s become crystal clear as to how heavily he leaned on the Superstars to achieve his objectives — or even sound semi-informed.

He really needs BTIA to step up their game to save him from his own lack of interest in the job.

They ain’t in sleepy think-tank land anymore, Toto. Responsibility and accountability can be unforgiving.

Comment by wordslinger Wednesday, Aug 2, 17 @ 11:21 am
47th Ward but he has a made good hiring choices…

Comment by Ghost Wednesday, Aug 2, 17 @ 11:26 am
Rauner has no credibility. At all. Even his supporters believe Madigan runs Illinois. Rauner takes no leadership roles, responsibilities and burned every bipartisan bridge. Consequently, we’re all left flailing around uncertain what this governor means to do. We’re all speculating spectators.

We have to move on by no longer listening to him. He makes everything worse when reporters do their job.

The sooner we ignor Bruce Rauner and start focusing on what we need to do - the better for us all.

Comment by VanillaMan Wednesday, Aug 2, 17 @ 11:27 am
== The sooner we ignor Bruce Rauner ==

Takes more or less the same number of votes (just a few more from the ILGOP did of the GA) to ignore him as remove him.

Comment by RNUG Wednesday, Aug 2, 17 @ 11:46 am
Since Rauner presumably knew what he wanted the final product to look like, why didn’t he have Rep. Durkin or Sen. Brady introduce bills during the Special Session he called?

Comment by Pot calling kettle Wednesday, Aug 2, 17 @ 12:14 pm
–Since Rauner presumably knew what he wanted the final product to look like,…–

After the last month, I wouldn’t presume that there’s a firm hand on the tiller right now.

Comment by wordslinger Wednesday, Aug 2, 17 @ 12:16 pm
=== I think the shift of the CPS pension money out of this bill and into a statute that this bill does not specifically address ===

Bingo. That’s why House Democrats changed the bill in the first place. They didn’t want the Pension Code opened up.

This is “an act concerning education” not “an act concerning pensions”, and Rauner’s changes therefore require an amendment that is not germane and would violate the single-subject clause.

Or so the thinking goes….

Comment by Free Set of Steak Knives Wednesday, Aug 2, 17 @ 12:27 pm
I said it was the most charitable way to describe this, not the only way. If your only two choices are you’re stupid or you’re lying, it is usually best to be stupid.

Comment by 47th Ward Wednesday, Aug 2, 17 @ 12:29 pm
Regardless of what Rauner might have said the sad reality is that Illinois will be cutting classrooms, roads,healthcare, prisons and everything else to pay for pensions including laying off active employees in order to par for retired folks.

Comment by Sue Wednesday, Aug 2, 17 @ 12:30 pm
=If your only two choices are you’re stupid or you’re lying, it is usually best to be stupid.=

Give that one a real think because it is really scary.

It is also correct.

Comment by JS Mill Wednesday, Aug 2, 17 @ 1:42 pm