Chicago Lecturers Union leaders argue Chicago Public Faculties already has the cash to settle tense contract negotiations with out mid-year price range cuts. CPS officers argue that’s not the case if the district will nonetheless be required to make a pension fee that Metropolis Corridor is relying on.
After months of talks and weeks of escalating rhetoric, the 2 sides are nonetheless making the identical factors. However they agree on one factor: They see methods they will get by means of this faculty yr with a balanced price range — albeit very alternative ways.
The CTU has stated the report amount of money CPS acquired from the town’s tax increment financing districts ought to land a deal. And union leaders up to now week have pointed to CPS’ $1.1 billion fund steadiness as proof that the district has the monetary assets obligatory to finish the contract battle.
“They’ve a enough quantity of reserves,” CTU analysis director Pavlyn Jankov stated Monday.
“It’s that along with the best, historic TIF surplus we’ve ever had, $300 million,” he stated, “which in each different contract bargaining state of affairs is the deal nearer: The TIF surplus will get launched, and we’ve got a contract.”
The big fund steadiness is a large enchancment from destructive balances nearly a decade in the past. However the $1.1 billion determine doesn’t signify money the district really has readily available to spend.
The CTU acknowledged as a lot in response to questions Monday. Jankov stated the fund fairly represents a more healthy monetary place that permits the district to paper over short-term destructive balances. And it permits CPS to borrow cash at decrease rates of interest, which the district already does to afford payroll.
CPS CEO Pedro Martinez stated the district wants much more TIF {dollars} to assist afford this yr’s price range. And CPS officers insist the $1.1 billion fund steadiness is deceptive.
CPS Chief Monetary Officer Miroslava Mejia Krug advised reporters at a information convention Monday that the district exhausts the funds on operational bills and has to take short-term loans so it might make payroll. That leaves solely $66 million — or three days’ price of working bills — within the financial institution at anybody time.
“Simply take into consideration if CPS actually had $1 billion sitting within the financial institution. Why are we required to concern $1 billion in short-term loans to pay our workers?” Krug stated. “It additionally doesn’t signify the amount of money really accessible on the finish of the fiscal yr.”
Martinez added: “There is no such thing as a legendary pot of gold, so I hope we will put this to relaxation.”
Martinez was given six months discover of termination partially over his refusal to take a mortgage to steadiness this yr’s price range. “I might not have risked the job that I really like, within the district that I really like, within the metropolis that I really like, my house metropolis, if we had huge reserves, then we may have solved all these price range points.”
Martinez stated the varsity district pays the wage raises it supplied the academics union this yr utilizing TIF funds. It supplied 4% raises for every of 4 years.
However Martinez stated CPS nonetheless can’t afford a $175 million municipal pension fee that the town is relying on CPS to pay. About half of the staff lined by this pension work for CPS, however up till 2019, the town lined it.
If CPS refuses to make that fee, the town would have a price range gap to fill. Alternatively, if the fee stays on CPS’ books — and a brand new CTU contract is settled — the district would face a mid-year deficit that might deliver layoffs, furloughs or different cuts.
Former Mayor Lori Lightfoot shifted a number of the pension contribution to CPS and, although he opposed that transfer as a CTU organizer, now Mayor Brandon Johnson wants it to steadiness the town’s tight price range. Johnson urged the district to take out a short-term mortgage to cowl prices and keep away from cuts.
Martinez stated he was keen to cowl the fee when the varsity district had federal COVID reduction cash to assist, however now that cash has run out, he isn’t. With the varsity district dealing with a possible deficit, Martinez stated, “That cash shouldn’t be taken away from CPS.”
Martinez additionally made the pitch as soon as once more for the town to run out TIF districts so the varsity district may get that tax cash. TIFs put aside new property tax {dollars} for initiatives in under-developed communities. However that’s cash that in any other case would have gone to CPS and different authorities businesses. Martinez stated he understands the explanation for TIFs however argued that property tax cash is required for colleges and different metropolis applications.
The varsity district is projecting a $700 million deficit subsequent yr, together with the wage will increase, and $900 million in years after that.
The CTU on Friday stated it could settle for the cost-of-living raises supplied by the varsity district, that are 4% a yr over 4 years. However it’s nonetheless combating for extra money for veteran academics, who cease getting further annual raises, referred to as steps, primarily based on expertise. The CTU stated they assume these raises would value about $25 million a yr.
CPS human assets chief Ben Felton stated the veteran trainer wage proposals would value “tens of tens of millions” of further {dollars} when the varsity district already has simply sufficient to pay the cost-of-living will increase.
“We perceive that CTU’s job is to advocate for his or her members, and that the popular final result is definitely to keep away from a strike,” he stated. “However for these causes, we’ll proceed to prioritize these landmark wage will increase and proposals as a worthwhile funding.”
