Public Schools Face Major Deficit

By Chuck Sudo in News on Nov 10, 2010 3:20PM

Not to make light of Ron Huberman's impending exit as Chicago Public Schools CEO, but he's probably leaving at the most opportune time... for him.

CPS is facing a budget deficit for next year of $700 million. The news came during a meeting of CPS' newly formed Finance and Audit Committee. The reasons for the deficit are the same: the state owes the school system money: $164 million from last year and $206 million so far this school year. The expiration of one-time revenue streams that helped balance the budget also plays a factor.

The system's bond rating also dropped from A+ to AA-. Despite the drop in bond rating, the School system is still considered an investment.