Introduction to the Crisis
Facing a major budget deficit, Chicago Public Schools officials suggested to board members Tuesday that they could delay some of the hard-fought guarantees in the just-ratified contract agreement with the teachers union — a suggestion that immediately resulted in a union threat to sue.
The Budget Deficit
In a letter to board members obtained by WBEZ, the Chicago Teachers Union called the idea “vindictive sabotage” that would result in “recommendations that will subject the district to legal action.” The school district and board members are looking for ways to address a $529 million budget shortfall, which doesn’t even include an additional $175 million pension payment the city wants CPS to cover. The school district’s fiscal year ends June 30, though the deadline for approving a budget for the upcoming school year isn’t until the end of August.
Response from CPS Officials
In a statement, CPS officials acknowledged that the district “may need to review all additional expenditures under various labor agreements and vendor contracts to ensure long-term sustainability,” promising to “work in partnership with our labor partners if any changes to collective bargaining agreement are needed.” The statement noted that Martinez and his team are not proposing canceling the 4% salary increase for staff or delaying the hiring of additional case managers and teachers for special education and English language learners.
Cause of the Deficit
The deficit became more real this week as state lawmakers passed a budget over the weekend without providing extra money for CPS. And while outgoing CPS CEO Pedro Martinez has called on the city to deliver more money for the school district, it is unlikely, considering the city is also searching for ways to balance its budget.
Proposed Solutions
CPS is suggesting delaying two parts of the CTU contract if it does not get $300 million in additional revenue from the city or state. At most, it would save about $70 million by delaying hiring some additional staff, such as librarians and nurses, and not setting aside as much money as specified in the contract agreement to relieve overcrowded classrooms, according to the budget document shared with board members. If CPS does not get an additional $300 million and must cut $529 million from its budget, officials say school-level budgets could be cut. It said in the statement that school-level spending would have to be reduced by $254 million and spending in CPS departments by as much as $271 million.
Borrowing as an Option
CPS officials are not talking about the possibility of CPS borrowing to fill the budget hole this year, even though some have told WBEZ they think it is on the table. Martinez has strongly advised against taking a loan to cover operating expenses, calling it fiscally irresponsible and suggesting it could be illegal. But Martinez was fired in part because of his opposition to taking a loan, and his last day is June 20.
Impact on Staff and Schools
While CPS’ 21-member board rejected the idea of a loan this spring, the drastic cuts now on the table might make them change their minds. As one board member who didn’t want to go on the record said, “No one wants to cut and no one wants to give us any money.” Hundreds, if not thousands of teachers and other staff would lose their jobs if the CPS budget was reduced by $529 million. Already on Tuesday, SEIU Local 73, which represents support staff, had their members flood CPS board members with emails begging them not to balance the budget on the backs of low-wage, mostly Black and Latino workers.
Union’s Stance
CTU would likely fight layoffs. But on Tuesday evening, the union focused on the smaller budget savings being presented to the board as options. “Contracts are not optional documents,” according to the letter sent to board members Tuesday evening. “They are covenants that provide security to the district’s employees, promises to the district’s students, and labor peace for the city as a whole.”
Conclusion
The situation between CPS and the CTU is at a critical juncture, with both parties facing significant challenges in addressing the budget deficit. The proposed delay of certain contract guarantees has sparked a strong reaction from the union, threatening legal action. As the deadline for approving the budget for the upcoming school year approaches, it remains to be seen how CPS and the CTU will navigate this complex and contentious issue.
FAQs
- Q: What is the current budget deficit faced by Chicago Public Schools?
A: The current budget deficit faced by Chicago Public Schools is $529 million, not including an additional $175 million pension payment. - Q: What is the proposal from CPS regarding the CTU contract?
A: CPS is suggesting delaying two parts of the CTU contract if it does not get $300 million in additional revenue from the city or state. - Q: How much would the proposed delay save?
A: The proposed delay would save about $70 million. - Q: What is the CTU’s stance on the proposal?
A: The CTU has threatened to sue, calling the proposal “vindictive sabotage.”
