"The taxpayers of the City of Chicago can't afford 35 [percent] -- the report, I welcome, thank you for the report," said Emanuel. "CPS and CTU are going to do the hard work of coming to an agreement. The report, at 35 percent over three years is not tethered to reality."
The fact-finder's report recommends a 15 to 20 percent pay hike for teachers in the contract's first year, adding up to 35 percent for four years.
However, the school district is facing a $655 million deficit next year.
The teacher's union will discuss the arbitrator's report with its house of delegates Wednesday.
If the report is rejected by either side, talks must go on for another 30 days before a strike can begin.