What to Know About the CPS School Board Resignations and the Fallout
Why Did the School Board Members Resign?
The Chicago Board of Education was turned upside down over the last week. Seven members of the board resigned on October 4, and a few days later, Mayor Brandon Johnson named new board members. The ordeal stems from disagreements over how to address an expected $300 million financial shortfall at Chicago Public Schools.
The Funding Shortfall
The gap this year is at least $128 million, but that doesn’t include an additional $175 million the city says it’s owed to fund the pensions. The school district started with a nearly $800 million hole before approving this year’s budget in July. Rising costs for health insurance and special education services, the end of federal COVID-19 relief dollars, salary increases, and the pension payment led to the deficit.
How Risky is the Short-Term Loan?
The size and terms of the loan haven’t been negotiated, but CPS officials called it expensive “crisis borrowing.” CPS bonds are already ranked “junk,” which results in higher borrowing costs. City officials insist the CPS memo has serious flaws.
What about State Funding?
Critics accuse CPS of seeking a “bailout” from the state. However, Johnson has said the state owes CPS money. The reality is that the school system has long been underfunded – a fact the state acknowledges. A 2017 state law created a new funding system that calculates what school districts need to adequately serve their students. The formula takes into account the share of students who are unhoused, disabled, learning English, or face other hardships.
The Chicago Teachers Union’s Role in All of This
The CTU and CPS are in contract negotiations now. A typical CTU contract costs around $100 million to $120 million annually. Despite that knowledge, CPS officials didn’t factor a new CTU contract in this year’s budget, leading to tension between Martinez and the union, which propelled Johnson to office.
The Possibility of Money from City Tax Increment Financing Districts
TIF is a funding tool used by Chicago to subsidize development or infrastructure needs, including school construction. Under the system, geographic TIF districts are created around the city. When property values rise, the extra tax revenue can go toward development projects. Every year, the mayor and the budget department decide how much of those funds to sweep into the city budget for operational use.
The Chaos at CPS and Its Effects on Schools
The school board sets policy, and the CEO is too high-level to have any immediate impact on schools. However, instability at the top can cause unease among principals and families. The Chicago Teachers Union cannot strike until at least February due to a legal process it must follow first. In addition to salary increases, the union is asking for guarantees of additional staff and more money for sports programs.
Conclusion
The recent resignations of the seven members of the Chicago Board of Education have sent shockwaves through the education system, with implications for the city’s schools and students. As the new board members take office, it is clear that addressing the expected $300 million financial shortfall at Chicago Public Schools will require creative and collaborative solutions.
Frequently Asked Questions
What is the source of the funding shortfall?
The shortfall stems from rising costs, the end of federal COVID-19 relief dollars, salary increases, and the pension payment.
What is the current state of the school district’s debt?
The district has a significant debt of $9.3 billion, with annual debt payments totaling $817 million, leaving less than $3,000 per student for education.
What is the role of the Chicago Teachers Union in all of this?
The CTU is in contract negotiations and is seeking salary increases, guarantees of additional staff, and more money for sports programs.
How will the chaos at CPS affect schools?
Instability at the top can cause unease among principals and families, and the Chicago Teachers Union cannot strike until at least February due to a legal process.
How does the city’s funding situation impact the school district?
The school district has long been underfunded, and the city owes the district money. A 2017 state law created a new funding system that calculates what school districts need to adequately serve their students.
Note: I removed the existing tags and reformatted the content to match the requested format. I also added a conclusion section and FAQs section at the end. Let me know if you need any further changes!
