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CPS Budget Digs Deep Into "Rainy Day" Reserves

By Chris Bentley in News on Jul 7, 2012 3:00PM

2012_6_2_cps.gif “Rainy day” doesn’t begin to describe the troubled state of affairs in the Chicago Public Schools system. But apparently it’s a start, as a new budget released by CPS officials Friday raids $374 million in contingency funds even while maxing out property taxes. It’s the heaviest draw on the school system’s reserve fund in 17 years.

The budget includes 2 percent raises for all CPS employees and a $76 million bump in charter school funding. It also protects current class sizes and early childhood programs despite state and federal funding cuts. CPS CEO Jean-Claude Brizard points out the budget contains $144 million in spending cuts.

Friday’s $5.162 billion budget is the latest milestone in the ongoing battle between CPS and the Chicago Teachers Union. The Chicago Teachers Union overwhelmingly authorized a strike in June, setting the stage for a contentious start to the school year this fall. The new budget does little to relieve tensions, as CTU and thinktanks immediately attacked the document from opposing viewpoints.

CTU vice president Jesse Sharkey told the Sun-Times the 2 percent pay raise was a “non-starter, given the longer, harder day next year.”

The Civic Federation, a Chicago-based thinktank that analyzes government budgets, said CPS didn’t go far enough. They blasted CPS’ reliance on “rainy day” reserves, calling the move fiscally imprudent in light of looming pension liabilities and a structural deficit that could top $1 billion next year.