• Mike Fourcher
    JAN 13, 2016
    rating
    UNLOCKED

    City and State Won’t Bail Out CPS

    The solutions for Chicago Public Schools’ growing financial crisis narrowed down by two today, as leaders from Chicago and the state rejected the possibility of direct aid to the school system any time soon.


    In a conference call with reporters yesterday afternoon, Chicago CFO Carole Brownacknowledged that CPS has a pending financial crisis, but then said, “The city has no plans to directly, financially assist CPS.”


    And, in an interview with CBS2’s Derrick Blakely yesterday afternoon, Gov. Bruce Rauner said the state won’t step up either. “Just raise taxes in the state and send us cash? That’s not going to happen,” said Rauner.


    While CPS has not set a specific date for when it will run out of cash, a recent analysis by Aldertrack found that mid-February will likely be when the cash crunch arrives. Property tax receipts do not begin to arrive until February 20, according to the Cook County Treasurer’s office.


    CPS’ ability to raise property taxes is capped: Last year’s maximum levy increase only raised $19 million last year. And because the city and state have both said a financial bailout is out of the question, CPS is left with choosing either conducting layoffs or borrowing hundreds of millions of dollars more to get through the school year.

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