Courtesy of Mish.
"B" Word Hits Chicago
At long last, Illinois has a sensible proposal to help Chicago schools: Bankruptcy.
The cause of Chicago's problem is untenable pension promises, ridiculous union contracts, and bloated administration payrolls.
As a direct result of those problems, the Chicago Board of Education, the nation’s third-largest district, is under fiscal siege. The CBOE operating deficit is projected to reach $1 billion a year through 2020.
Yet, union arrogance abounds. The Chicago's teachers union is threatening to strike, demanding still more benefits.
Republicans Propose Takeover
The solution, proposed by Governor Bruce Rauner and key Republican leaders on January 20, is a State Takeover and Bankruptcy for Chicago Schools.
Christine Radogno and Jim Durkin, the state’s top Republicans in the legislature, outlined a proposal Wednesday that would allow the state to take control and even push the system, charged with educating almost 400,000 students, into Chapter 9.
“What we’re proposing is a lifeline,” state Senator Radogno told reporters in Chicago. “We didn’t come to this lightly. The track record of Chicago and its public school system is abysmal.”
Illinois Governor Bruce Rauner, a Republican who has been at odds for months with the Democrat-controlled legislature over the state budget, has said he won’t bail out Chicago’s school system unless Mayor Rahm Emanuel supports limits on unions or other proposals he’s seeking to enact.
School officials passed a budget for the year that started July 1 with a $480 million hole, asking the state for the money to fill the gap. Without it, the district faces drastic cuts and more borrowing, officials have said.
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