Chicago Public Schools Board holds public hearing on budget amendment
CHICAGO (WLS) -- Thursday morning was the public's first chance to share their thoughts on how Chicago Public Schools should balance its budget before the school board votes on an amended budget next week.
At the center of the situation is a $139 million proposed budget amendment by CPS.
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As Chicago Public Schools negotiates contracts with teachers and principals, the CPS Board members consider whether to reimburse the City for pension costs despite a budget that is anticipated to be in the red if or when contract agreements are made.
Comments on a CPS budget amendment came from stakeholders in the public school system in the first of two public hearings on the controversial financial issue.
"If you truly prioritize the students families and communities of CPS, you simply can not vote to reimburse the city," said Hal Woods with Kids First Chicago.
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"Members of the board as you prepare to vote on a Budget amendment next week, I want to urge you to vote for a budget that invests in our schools and doesn't cut from our students," said Tenesha Rawls with the Chicago Teachers Union.
At issue was whether to make a $139 million reimbursement to the City of Chicago for pension costs.
"If refinancing or a loan, those chickens come home to roost years from now, take that all into consideration, because it's the workers and the children who suffer from these decisions," said Stacia Scott Kennedy with SEIU.
The money came from a surplus in the City's tax increment financing, or TIF, and the city wants the money back.
"What this amendment does is provide the ability for the board to direct the $139 million of additional funding while also providing flexibility for other solutions that may arise," said Mike Sitkowski, CPS Chief Budget Officer.
Some question making that reimbursement to the city when CPS has yet to get contracts with teachers and principals. Mayor Brandon Johnson has said he is expecting the reimbursement.
There is concern from some CPS board members if reimbursement is not made, the city may be reluctant to help the underfunded school system in the future, or conversely the potential impact on contract negotiations.
"If this money is not available for the collective bargaining agreement then will result in a potential strike vote," CPS CEO Pedro Martinez said.
Some CPS Board members point to a bigger problem of funding the district that considers refinancing debt or cuts in order to balance budgets.
"We are discussing hanger games and a budget of scarcity that is not where we need to be obviously," CPS Board Member Debby Pope said.
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"I don't hear any comprehensive plan I hear it's almost like we're in a boat and we've got duct tape in the bottom And we are hoping the leak don't spring," CPS Board Member Jitu Brown
"We need a very strong strategy with our unions with our mayor with city hall and around the state because we are just underfunded," Martinez said.
The second public hearing on the budget amendment will be Friday at 10:30 a.m. at CPS headquarters. The board is expected to vote on the budget amendment next week.
