The Board of Schooling is contemplating an modification to this yr’s Chicago Public Colleges price range that would lastly power a call about whether or not it would make a disputed pension cost and the way it can pay for a brand new Chicago Lecturers Union contract that’s nonetheless being negotiated.
The modification, which was posted Wednesday, doesn’t embody the funding for these bills. It leaves open the opportunity of a mortgage, suggesting it could possibly be taken out by an entity apart from CPS however not specifying what different entity would do it. It additionally suggests extra cash might come from Metropolis Corridor or price range cuts — however at this late level within the faculty yr, it could be onerous to search out locations to economize apart from by furloughs or layoffs, which Mayor Brandon Johnson and his allies on the CTU are staunchly in opposition to.
On the identical time, CTU leaders on Wednesday offered faculty board members with what they known as their “final, finest and closing supply” to settle contract talks. The union is telling its members it has already negotiated “transformative” agreements — an vital signal it’s trying to land a deal. However a CTU lawyer warned the board to bear in mind the union’s closing checklist of calls for to keep away from a “huge, messy, pointless combat.”
The approaching two weeks will probably be pivotal in figuring out what occurs subsequent.
The CTU has fulfilled the authorized steps essential to strike. It might stroll out as quickly as March 17 if it doesn’t attain a deal, although the union should present 10 calendar days’ discover of its intent to strike. CTU leaders haven’t known as for members to take a strike authorization vote.
Hearings on the modification are scheduled for March 13 and 14. A vote on a price range change is anticipated on March 20.
Altering the price range would carry to a head a long-running battle between the mayor, his former employers on the CTU and the varsity district’s administration. CPS sometimes doesn’t embody cash in its price range — which is permitted the summer time earlier than lessons start — for a brand new lecturers contract when it’s nonetheless being negotiated. The district normally amends the spending plan as soon as the contract is landed. This yr there’s additionally an anticipated contract with the brand new principals union.
Rebuking the mayor, CPS CEO Pedro Martinez and a earlier board additionally didn’t embody within the price range $175 million for a cost to the municipal pension fund, which serves CPS workers who aren’t lecturers. The varsity district has paid it for the previous 4 years — beginning underneath former Mayor Lori Lightfoot, regardless of objections from the CTU on the time. Martinez argued that the varsity district was going through a very tight price range this yr after being flush with $2.8 billion in federal COVID-19 aid cash.
Nonetheless, the town’s price range counted on CPS making that cost, and now Metropolis Corridor says it wants that $175 million by March 30 to shut its 2024 price range within the black.
CPS wants $242 million
Town supplied CPS file funding from particular taxing districts known as TIFs, however to make the pension cost and wage will increase promised within the lecturers contract, the varsity district would want one other $242 million.
The proposed price range modification provides to CPS’ stability sheet a beforehand introduced $139 million in TIF funding. However past that the language is obscure, leaving it unclear whether or not the varsity board will take out a mortgage to make the pension cost and canopy the lecturers contract. It says the varsity district will tackle the pension cost in addition to wage will increase for lecturers and principals utilizing TIF funding, price range cuts and “different acceptable native income, which can embody different entities incurring debt on CPS’ behalf.”
However the mayor’s workplace has instructed that CPS borrow to cowl these bills, which has sparked an onslaught of criticism due to worries the loans would carry high-interest charges for an already indebted faculty district. Johnson has not too long ago renewed his push at an rate of interest of 4.37% for a five-year mortgage or 4.6% for 10 years — charges which can be comparatively low for CPS.
“Mayor Johnson has maintained that Chicago Public Colleges has an obligation to its workforce and its retirees and this proposed price range modification is in step with that obligation,” the mayor’s workplace mentioned in a press release. “Mayor Johnson is supportive of any instruments that the varsity district can make the most of on its behalf to stability its price range with out slicing lecturers or assets for college students.”
A staffer from the Chicago Public Schooling Fund, a company supported by prime philanthropic and enterprise pursuits within the metropolis, got here to a board assembly Wednesday to induce board members to not take a mortgage. Mariel Laureano, CPEF director of schooling helps, advised members that she worries debt funds will eat into cash that’s purported to go for schooling.
“Please don’t take the chance,” Laureano mentioned. “Prioritize the wants of faculty communities.”
The modification wants two-thirds of the 21-member board to go, and most of the elected board members pledged to not borrow after they have been working. Eleven faculty board members — together with the board president — are nonetheless appointed by the mayor, and three elected members had robust backing from the CTU. The board president, nevertheless, doesn’t vote until there’s a tie. So 14 of the opposite 20 members must approve an modification.
There’s anticipated to be a robust push from members aligned with the mayor and CTU to associate with the borrowing and make the pension cost. Throughout a presentation on a TIF-funded faculty constructing mission Wednesday, board member Norma Rios-Sierra mentioned CPS has a “want to keep up our obligation with the town in order that we will proceed to offer these partnerships for our faculties.”
CTU kicking into excessive gear
The timing of the modification is also placing a hearth underneath the CTU, which has been negotiating its contract for nearly a yr.
CTU President Stacy Davis Gates mentioned at a information convention earlier than Wednesday’s board assembly that the union is anxious that after an modification is permitted it would hamstring its capacity to maintain bargaining.
“So we’re curious to know if it is a energy transfer by the CEO to attempt to marginalize the desk much more,” she mentioned.
The union offered the board Wednesday with a doc displaying what it must settle the contract. The union additionally introduced 10 staffers to the board assembly to speak about a number of the excellent points they should come to settlement on.
The CTU’s “closing supply” accepts the CPS proposal for 16% cost-of-living will increase over 4 years, pushes its request for 28-student class sizes in center faculty till 2027-28 and strikes within the district’s route on thorny points like instructor evaluations. The union additionally lowered its demand for librarians, asking for an extra 30 librarians every of the subsequent three faculty years.
The CTU additionally laid out greater than 150 agreements with CPS on a variety of points.
However the union’s newest proposal nonetheless reveals some main disagreement on key points corresponding to additional pay for veteran lecturers and preparation time for elementary educators.
Sarah Karp covers schooling for WBEZ. Comply with her on X @WBEZeducation and @sskedreporter. Nader Issa covers schooling for the Chicago Solar-Occasions.
