CPS To Announce Layoffs, As Lawmakers Look To TIFs For Budget Fix

By aaroncynic in News on Jan 22, 2016 4:30PM

Chicago Public Schools plans to announce a round of layoffs Friday in its Central Office.

Emails obtained by the Tribune show the district planned to issue a statement on Thursday, "when news leaks," which were then to be followed by an overview and full details by the end of Friday.

Schools CEO Forrest Claypool said the district is trying its best to fix its money problems:

“We do not take these actions lightly, but as we ask others to do their part, we are doing everything in our power to put our fiscal house in order. Every department at CPS will have to do more with less, as we streamline administrative functions in an effort to prevent cuts from reaching our classroom doors. These cuts will consolidate some functions and challenge the district to continue delivering services.”

Officials say they're making about $80 million in cuts, half of which will come from the Central Office.

While no layoffs to teachers or other staff have been announced, the Chicago Teacher's Union and other CPS employees are concerned about the potential of massive layoffs in the district as it faces a $480 million budget shortfall. The union and others say that instead of painful cuts and layoffs, there are other options to find the funding, which also don't include Governor Bruce Rauner's proposed "state takeover" of CPS or bankruptcy.

"Although CPS has not ruled out teacher or PSRP layoffs later, CTU officers have negotiated every day this week with CPS representatives," the union wrote in a statement Friday morning. "We hope to find an acceptable contract, but note that CPS and the mayor have made no move, yet, to either release available TIF funds to the district or sue banks for their ill-gotten toxic swap profits."

Some Chicago aldermen and state Democratic legislators are calling for the city to use excess TIF money to help plug the hole in the Chicago Public Schools budget. Proponents say that there could be anywhere between $150 million and $350 million in surplus TIF funds, which would go a long way in making up the $480 million CPS deficit.

Currently, Mayor Rahm Emanuel splits up surplus TIF funds between the schools and other city entities. A bill Rep. Barbara Flynn Currie says she plans to propose would put all surplus TIF funds to CPS. “Tightening the definitions of what counts as surplus TIF funds goes a long way to solving the immediate problem and gives us all time to figure out what we might do next,” said Currie at a Thursday morning press conference at the Thompson Center, the Sun-Times reports.

Dozens of Chicago aldermen have also signed a resolution introduced in City Council last week by ald. Carlos Ramirez-Rosa calling for surplus funds to be given to CPS. “Chicago can and should invest in our children with an infusion of funds from our City’s $1.38 billion aggregate TIF balance,” reads a petition on Rosa’s website, calling for “citizen co-sponsors” of the resolution. Some 29 Aldermen have now signed on to co-sponsor the ordinance. On Wednesday, Rosa told DNAinfo:

"We are trying to get the word about this out there and one of the ways to do this is by asking for citizens to co-sponsor. My sense is a lot of aldermen are going to be supportive of this measure."

Ald. Ameya Pawar said while he was in favor of using the surplus funds, it wouldn’t be enough to curb potential teacher layoffs, and that another property tax increase - despite the city’s approval of a hike last year - would be needed. Pawar told the Sun-Times:

“We in the City Council need to keep schools open for the year. If that means raising property taxes again, I’m willing to take that vote. If the governor is willing to lift the property tax cap, CPS can do it on its own. If he doesn’t, then the City Council has to start talking about it in combination with the TIF surplus.”