Chicago Public Schools is facing a severe $500 million budget deficit and potentially worsening debt from a high-interest loan.
High-Interest Loan Could Worsen Debt Crisis
According to the report of The Center Square, Chicago Public Schools (CPS) is facing a big $500 million budget shortfall and Mayor Brandon Johnson is considering a high-interest loan to address it. Sheila Weinberg, head of Truth in Accounting argues that borrowing money to pay current expenses is a bad financial move and could worsen the city’s problems. She points out that CPS’s financial statements show a huge $17.4 billion in debt revealing serious financial trouble for the district.
Teachers Union Demands Big Pay Raises, But at What Cost to Taxpayers?
Complicating matters, the Chicago Teachers Union (CTU) is asking for big pay raises at least 9% each year until 2028. The Illinois Policy Institute estimates that these raises and other demands could cost taxpayers $51.5 billion or more. With the CTU’s last contract ending on June 30 and no new deal yet and the start of school is just around the corner with no agreement in sight.
The situation is made worse by disputes over state funding. Weinberg questions if more state money is needed, considering the large amounts already spent on teacher retirements and other CPS worker costs. As the city and school district struggle with their finances finding a lasting solution is becoming more urgent.