(The Center Square) – Illinois taxpayers are sending hundreds of millions of dollars to a Chicago school system that has a massive budget deficit.
Chicago Public Schools reported a budget gap of $500 million this year, and Mayor Brandon Johnson did not rule out a high-interest loan to cover it.
Truth in Accounting Founder and CEO Sheila Weinberg told The Center Square that the city needs to make cuts or add revenue, and she does not consider a loan as revenue.
“You know, it’s not financially prudent to borrow money to pay for your current expenses, but evidently, that’s how they roll in Chicago,” Weinberg said.
Johnson has said that the state of Illinois owes CPS a billion dollars.
Weinberg said that last year alone, the state spent $300 million of taxpayers money on the Chicago teachers retirement plan and another $261 million for the CPS workers who are not part of the teachers union.
“Should the state kick in any more? I think people around the state would really question that,” Weinberg said.
CPS does not have a contract with the Chicago Teachers Union for the upcoming school year. The previous agreement expired on June 30.
CPS and CTU have been talking for months. The next public negotiating session is scheduled for Aug. 13. The first scheduled day of school for students is Aug. 26.
Johnson refused to close CPS’ reported $500-million budget gap with spending cuts.
Weinberg said the city and the school district seem to be on a financial death spiral.
“Looking at their financial report, the budget is pretty much a political document. If you really want to know the finances of CPS, you have to look at their financial statement. And it shows that they’re $17.4 billion in the hole,” Weinberg said.
According to the Illinois Policy Institute, the Chicago Teachers Union is asking for pay raises of at least 9% each year through fiscal year 2028. IPI said the salary hikes and CTU’s additional contract demands could cost taxpayers $51.5 billion or more.
