CPS Budget Amendment Targets CTU Contract, Disputed City Pension Payment
The Board of Education is considering an amendment to this year’s Chicago Public Schools budget that could finally force a decision about whether it will make a disputed pension payment and how it will pay for a new Chicago Teachers Union contract that is still being negotiated.
The Budget Amendment
The amendment, which was posted Wednesday, doesn’t include funding for those expenses. It leaves open the possibility of a loan, suggesting it could be taken out by an entity other than CPS but not specifying what other entity would do it. It also suggests additional money could come from City Hall or budget cuts — but at this late point in the school year, it would be hard to find places to save money other than through furloughs or layoffs, which Mayor Brandon Johnson and his allies at the CTU are staunchly against.
CTU’s “Last, Best, and Final Offer”
At the same time, CTU leaders on Wednesday presented school board members with what they called their “last, best, and final offer” to settle contract talks. The union is telling its members it has already negotiated “transformative” agreements — an important sign it is looking to land a deal. But a CTU lawyer warned the board to take into account the union’s final list of demands to avoid a “big, messy, unnecessary fight.”
The Coming Two Weeks
The coming two weeks will be pivotal in determining what happens next.
CPS Needs $242 Million
CPS typically doesn’t include money in its budget — which is approved the summer before classes begin — for a new teachers contract when it’s still being negotiated. The district usually amends the spending plan once the contract is landed. This year there’s also an anticipated contract with the new principals union.
Rebuking the mayor, CPS CEO Pedro Martinez and a previous board also did not include in the budget $175 million for a payment to the municipal pension fund, which serves CPS employees who aren’t teachers. The school district has paid it for the past four years — starting under former Mayor Lori Lightfoot, despite objections from the CTU at the time. Martinez argued that the school district was facing a particularly tight budget this year after being flush with $2.8 billion in federal COVID-19 relief money.
City’s Budget Counts on CPS Payment
Still, the city’s budget counted on CPS making that payment, and now City Hall says it needs that $175 million by March 30 to close its 2024 budget in the black.
CTU Kicking into High Gear
The timing of the amendment also is putting a fire under the CTU, which has been negotiating its contract for almost a year.
CTU President Stacy Davis Gates said at a news conference before Wednesday’s board meeting that the union is worried that once an amendment is approved it will hamstring its ability to keep bargaining.
Conclusion
The coming two weeks will be crucial in determining the outcome of the budget amendment and the CTU contract negotiations. The school district and the city are at a crossroads, and the decisions made in the next two weeks will have significant implications for both parties involved.
FAQs
Q: What is the purpose of the budget amendment?
A: The budget amendment is intended to provide additional funding for the Chicago Public Schools (CPS) to make a disputed pension payment and pay for a new Chicago Teachers Union (CTU) contract that is still being negotiated.
Q: What is the current status of the CTU contract negotiations?
A: The CTU and CPS are still in contract negotiations, and the union has presented its “last, best, and final offer” to settle the contract.
Q: What are the implications of the budget amendment for the CTU contract negotiations?
A: The budget amendment could force the CTU to accept a contract that is less favorable to the union, or it could lead to a strike by the union if the negotiations do not result in an agreement.
Q: What is the deadline for the city’s budget?
A: The city’s budget deadline is March 30, and the city needs the $175 million payment from CPS to close its 2024 budget in the black.
Q: What is the current budget situation for CPS?
A: CPS typically doesn’t include money in its budget for a new teachers contract when it’s still being negotiated. The district usually amends the spending plan once the contract is landed. This year there’s also an anticipated contract with the new principals union.
Q: What is the current status of the pension payment?
A: The school district has paid the pension payment for the past four years, starting under former Mayor Lori Lightfoot, despite objections from the CTU at the time. Martinez argued that the school district was facing a particularly tight budget this year after being flush with $2.8 billion in federal COVID-19 relief money.
