Mayor Emanuel defends newly-passed CPS budget

CHICAGO (WLS) -- Mayor Rahm Emanuel is defending the newly-released Chicago Public Schools budget, saying there is nothing "irresponsible" about it.

With a property tax increase, the spending plan still has a $500 million hole in it.

CPS is betting the budget-challenged State of Illinois will ride to the rescue and save the nation's third largest school system from financial ruin. The wager is blessed by City Hall.

After helping open the West Loop headquarters of Gogo - an in-flight Wi-Fi service - Mayor Emanuel defended the CPS budget.

Critics called the spending plan "irresponsible" because it counts nearly $500 million in revenue that still has not been appropriated by the state, which has its own budget deficit.

"CPS is not asking for something special. They're asking to be treated just like every other school system," Emanuel said.

"When you're gambling on Springfield, you're lost," said Jesse Sharkey, Chicago Teachers Union vice president.

At the City Club, Sharkey predicted mass layoffs if state aid does not materialize.

The union wants increased taxes on the wealthy and corporations, and specifically for Bank of America to return $276 million in interest payments CPS has made on past loans.

"Bank of America, give back the money you took or we will boycott Bank of America," Sharkey said.

Facing a $1.1 billion deficit, the mayor's handpicked CPS board raised property taxes to the allowable limit for the fifth year in a row.

"That's the primary mechanism by which we can fund schools, so that's the one mechanism that we have to look at to see what we can do to adequately fund our schools," said Jesse Ruiz, CPS board member.

Emanuel would not say if he supported Springfield allowing an even higher property tax increase to support CPS.

Northwest Side State Rep. Robert Martwick, who is sponsoring a bill for an elected Chicago School Board, suggested taxpayers brace themselves.

"Nobody wants to pay more taxes but they understand that if they have to pay more, we just want to make sure we're fixing the problem and addressing it and not just creating another problem for next year," Martwick said.

Bank of America Spokeswoman Diane Wagner declined to comment on the CTU threat.