In Finance and Budgets
CEO Ron Huberman is preparing for another round of budget cuts to hit this school year and to issue a major announcement about next year's cuts to close the district’s estimated $800 million budget gap.
The immediate budget reductions would be instituted to deal with the state’s failure to pay out about $207 million that it owes the district. The state, facing perhaps its worst fiscal crisis ever, is short on money and the comptroller is holding the money back, says Illinois State Board of Education spokesperson Mary Fergus.
But this year’s cuts will pale in comparison to what Huberman is planning for next year--including possible cuts to charter schools.
“Everything is on the table,” including after-school programs, sports, charters and early education, says spokesperson Monique Bond. She also confirms that Huberman will be looking to teachers for savings.
“We have already run out of options,” Bond says. “We are facing a very dire situation.”
Marilyn Stewart, president of the Chicago Teachers Union, says the district is engaged in political finger-pointing, blaming teachers for the budget crisis. To institute layoffs or withhold raises because of the budget crisis, CPS would have to declare a fiscal emergency and reopen negotiations with the union.
“With all the things they’re going to cut, they’ll still have a deficit. So what’s the point?” says Stewart. “They’re trying to panic people, destroying the already-fragile morale of teachers and students. Politics is the only game they know how to play.”
Huberman and his staff have reportedly been meeting with state lawmakers and others to talk about options.
A major surprise is that Huberman would look to charter schools, the centerpiece of the district's Renaissance 2010 program, for savings. Last year, the district sent off $270 million to charters.
Under state law, the district must give charters between 75 and 125 percent of what they spend on students in traditional schools. Currently, the district gives charter high schools the same amount as it spends per student; charter elementary schools receive slightly less.
Carlos Perez, director of policy for the Illinois Network of Charter Schools, says he’s heard nothing of changes in spending on charters. He makes the point that charters are already under-funded because they must pay rent and upkeep on facilities, and rely on foundations and fundraisers to meet their budgets.
State Senator Kimberly Lightford, a member of the Education Committee, says that Huberman and his staff have tried unsuccessfully to meet with her several times over the last week and have already scheduled a meeting for next week.
Lightford says she would not be too bothered by trims in money provided to charter schools, given that they raise outside money. However, she would be disturbed by teacher cuts. “I am not only concerned about teachers being unemployed, but more so about the direct impact on the learning of students,” Lightford says, noting the likely increase in class sizes.
Among the things that Huberman is telling state lawmakers and officials is that he can no longer fill in spots where they have reduced funding, Bond says. This past year, state categorical funding for bilingual education and early childhood education was cut by about $20 million.
Rather than trim those programs, this year Huberman found other money to make up for the loss. But, next year, if the categorical grants are cut again, those programs most likely will suffer, Bond says.
But Fergus notes the state is also in bad shape. Next Thursday, the Illinois State Board of Education will have a meeting in which members will discuss how to deal with a hole of about $1 billion. “So it is not good for us either,” she says.
If you go to http://www.cps.edu/About_CPS/The_Board_of_Education/Documents/BoardActions/2006_12/06-1220-RS6.pdf
You can see that TIFs were used to float $800 million in capital construction costs for CPS in 2006. Now this does not offset what CPS has lost in revenue from TIFs. Ben Joravsky from the Reader has pointed this out in his very good article dated June 22, 2006. Blog readers can access this article at:
http://www.chicagoreader.com/chicago/the-schools-scam/Content?oid=922475
But we also need to realize that the loss of revenue for CPS was estimated by Joravsky to be about $155 million a year based on his analysis done in 2006 not $500 million a year as ChiGuy indicates, unless of course something dramatic has happened in the last three years that I am unaware of.
So lets assume CPS could get the additional $155 million lost to TIFs that would not be enough to right the ship, it would certainly help. CPS can increase taxes to the max and that will help. However, even with these type of actions CPS really does appear to be in trouble. But so are other districts, for example yesterday Plainfield Community Consolidated School District 202 cut $22.3 million resulting in the elimination next year of 160 full-time equivalent (FTE) positions across the district -- teachers, support staff and administration. Plainfield 202 only has about 3,105 employees so the 160 position cut equals about a 5% cut in employment. If CPS cut 5% of its employees we would be talking about 2,000 positions.
The Plainfield district covers all or parts of Bolingbrook, Crest Hill, Joliet, Lockport, Naperville, Plainfield, and Romeoville along with portions of unincorporated Will and Kendall counties. It has $119,287 of Equalized Assessed Valuation per Pupil and a school tax rate of 4.60. By comparision CPS has an Equalized Assessed Valuation per Pupil $197,139 and a school tax rate in 2006 of 2.82. To a degree CPS is in a similar situation as Plainfield 202 but it taxes at a higher rate than Chicago because it has less property wealth in order to fund schools.
Teachers and activists need to understand the current problem CPS faces is also faced by many other districts in the state and is similar in its size. The issues that Ms. Karp points to in her article are very real. What gets cut and what does not, is really the question. As I have said before one thing I would recommend is for CPS to stop putting additional schools in its turn around program, and open no new schools. If CPS closes some of the charters that have not been meeting AYP and take these students back into traditional schools and going to larger network charters meeting AYP it might also reduce the $689 million it is spending on tution and professional services.
But even with these types of reductions CPS is still faced with the type of cuts Ms. Karp discussed.
Rod Estvan
The Chicago Reader has done stellar work regarding the TIF Funding. Visit and learn about Daley's shenanigans with our tax money!
http://www.chicagoreader.com/chicago/the-chicago-reader-tif-archive/Content?oid=1180567
These stories are so sad!!! Lets start with a 10% cut in principal salaries...they all make about 130 plus benefits equalling 175 plus a year....this is sick!! they arent exactly running GM or Ford !!! ok 450 schools and 17k = thats almost 8 million dollars..and lord knows being paid about 120k aint exactly a sacrafice in this present world!! plus vps making close to about 90k,,,,like 9000 per employeee is another 4 million..that's 12 million saved...and no one is going to bed hungry and no mortgage unpaid.
on the other hand try being a teacher making 45k a year..forced to pay rent in the city....plus i bet 20k in loans!! now they may go hungry or lose thier homes...but they could move back with their parents....oh yea...they cant leave the city because of residecy restrictions..which many principals are grandfathered in...even though i think they of ANYONE should be near a school in case of an emergency! dont even get me started on the poor aids!!
hey i am a 7th year teacher...illl take a 5% cut! but will they ....huberman???? i doubt it...didnt that guys scam the city to pad his pension???? some crap about being a public safety officer on the CTA/?? is that true??? please tell me no!!
ok i think i am done with reading th news about cps...its literally gonna give me a stroke..trying to come up with my city mortgage!!
helpppppppppppppppppp
these people lie and steal public assets for personal gain.
huberman helps them. he has a record of attempted fraud of public assets by trying to claim a CPD pension when he was at the CTA saying that his duties at CTA amounted to public safety and therefore his years at CTA should be counted towards his police pension even when he was making $198,000 a year. Huberman is a criminal under the protection of the daley machine.
http://chicagoist.com/2008/10/17/fop_on_hubermans_pension_claim_um_n.php
here is the quote from above
Carlos Perez, director of policy for the Illinois Network of Charter Schools, says he’s heard nothing of changes in spending on charters. He makes the point that charters are already under-funded because they must pay rent and upkeep on facilities, and rely on foundations and fundraisers to meet their budgets.
if you go through the November 2009 board reports charters are forced to pay as much as $1 per year lease.
here are just a few that i got in a few clicks of the mouse
REPORTS FROM THE CHIEF FACILITIES OFFICER - November 2009
http://www.cps.edu/About_CPS/The_Board_of_Education/Pages/Actions2009_11.aspx
09-1123-OP1 ($1 per year lease)
Ratify a Lease Agreement with Aspira of Illinois, Inc., for Rental of the Haugan School Building at 3729 W. Leland Avenue
http://www.cps.edu/About_CPS/The_Board_of_Education/Documents/BoardActions/2009_11/09-1123-OP1.pdf
09-1123-OP2 ($1 per year lease)
Ratify a Lease Agreement with Aspira of Illinois, Inc. for Rental of the Moos School Building at 1711 N. California
http://www.cps.edu/About_CPS/The_Board_of_Education/Documents/BoardActions/2009_11/09-1123-OP2.pdf
09-1123-OP3 ($1 per year lease)
Ratify a Lease Agreement with North Lawndale College Preparatory Charter High School for Rental of the Collins High School Building at 1313 S. Sacramento
http://www.cps.edu/About_CPS/The_Board_of_Education/Documents/BoardActions/2009_11/09-1123-OP3.pdf
09-1123-OP4 ($1 per year lease)
Ratify a Lease Agreement with Perspectives Charter School for Rental of the Raymond School Building at 3663 S. Wabash
http://www.cps.edu/About_CPS/The_Board_of_Education/Documents/BoardActions/2009_11/09-1123-OP4.pdf
09-1123-OP5 ($1 per year lease)
Ratify a Lease Agreement with Polaris Charter Academy for Rental of the Morse School Building at 620 N. Sawyer
http://www.cps.edu/About_CPS/The_Board_of_Education/Documents/BoardActions/2009_11/09-1123-OP5.pdf
09-1123-OP6 ($1 per year lease)
Ratify a Lease Agreement with The University of Chicago Charter School Corporation for Rental of the Donoghue School Building at 707 E. 37th Street
http://www.cps.edu/About_CPS/The_Board_of_Education/Documents/BoardActions/2009_11/09-1123-OP6.pdf
09-1123-OP7 ($1 per year lease)
Ratify a Lease Agreement with The University of Chicago Charter School Corporation for Rental of the Woodson South School Building at 4444 S. Evans
http://www.cps.edu/About_CPS/The_Board_of_Education/Documents/BoardActions/2009_11/09-1123-OP7.pdf
stop the stealing and theft by political cronies and hacks first then we should be able to get a better picture of what is really needed to balance the budget.
John Kugler
kuglerjohn@comcast.net
next time check the people you interview in an article.
the leases with 6 charters schools were for $1 per year lease voted on in the November 2009 Board meeting. (some leases are four years, not bad for a school building in a gentrifying area like collins high school)
I found the following information with a few clicks of the mouse at 2am.
John Kugler
johnkugler@substancenews.net
Carlos Perez, director of policy for the Illinois Network of Charter Schools, says he’s heard nothing of changes in spending on charters. He makes the point that charters are already under-funded because they must pay rent and upkeep on facilities, and rely on foundations and fundraisers to meet their budgets.
Board Actions - November 2009
REPORTS FROM THE CHIEF FACILITIES OFFICER
09-1123-OP2 Ratify a Lease Agreement with Aspira of Illinois, Inc. for Rental of the Moos School Building at 1711 N. California Accepted
09-1123-OP3 Ratify a Lease Agreement with North Lawndale College Preparatory Charter High School for Rental of the Collins High School Building at 1313 S. Sacramento Accepted
09-1123-OP4 Ratify a Lease Agreement with Perspectives Charter School for Rental of the Raymond School Building at 3663 S. Wabash Accepted
09-1123-OP5 Ratify a Lease Agreement with Polaris Charter Academy for Rental of the Morse School Building at 620 N. Sawyer Accepted
09-1123-OP6 Ratify a Lease Agreement with The University of Chicago Charter School Corporation for Rental of the Donoghue School Building at 707 E. 37th Street Accepted
09-1123-OP7 Ratify a Lease Agreement with The University of Chicago Charter School Corporation for Rental of the Woodson South School Building at 4444 S. Evans Accept
Interesting. Thanks for the heads up.
then to come back at me when i make a disclosure of public record that was obviously left out of a discussion on budget issues is just plain crookedness. (Carlos Perez = they must pay rent) there is no confusion what that meant and it is misleading especially when the rent is $1 per year. all schools pay maintenance and facilities fees that is what you have to do when you run a business.
the only problem (possibly legal) now is that here are business entities that take government subsides and exclude segments of the population with selective enrollment or exclude certain populations from gaining access to the facilities and services (i.e: UNO, Urban Prep, YWL, etc....) Not any child can walk into the door and receive educational services like an open enrollment neighborhood school that were closed and replaced by these charters in these buildings. These schools or whatever you want to call them, are in there very nature discriminatory organizations while using facilities paid for by tax dollars: A complete disregard for the foundations of Free and Public access to education.
That is a fact.
John Kugler
kuglerjohn@comcast.net
Institutional discrimination begins with the recruitment process.
1) Take all schools to warming schools in the cafeteria's. There is so much waste in food service.
2) An across the board cut (4%) in all salaried employees pay.
3) Stop subsidizing the homeless program. Most are lying about their situation.
4) Downsize the budget department and put these folks in the CAO's office.
5) Consolidate more schools.
6) take some of the high schools and make them 6-12 schools. Close a few more schools and consolidate others after this move. Most high Schools are not at capacity.
7) Freeze all pay for 4 years.
8) Have employees pay a greater portion of healthcare.
9) Outsource janitorial services in all schools.
These are not popular options, however, I do believe that the Board can balance the budget and still give students great options for education.
1) Take all schools to warming schools in the cafeteria's.
*I have no idea what this means.*
2) An across the board cut (4%) in all salaried employees pay.
*Only when “Concerned” and others who support this idea take a 4% cut in their incomes will I even consider this proposal.*
3) Stop subsidizing the homeless program. Most are lying about their situation.
*Look, Cruella deVil, you are heartless and wrong. MOST homeless kids are too ashamed even to admit to it. Further, CPS doesn’t really spend that much money “subsidizing” anything here.
4) Downsize the budget department and put these folks in the CAO's office.
*The department probably isn’t big enough to spread employees around more than two dozen area offices. Besides, budgeting is an area where centralization keeps costs down. Totally clueless!*
5) Consolidate more schools.
*The Board is already doing this. Most Chicago schools, however, are already large enough to enjoy the cost-savings gained through economies of scale. But, for those that haven’t...How about we get rid of the schools YOUR children attend or those in your community? Then those children can go to much bigger schools in other neighborhoods.*
6) take some of the high schools and make them 6-12 schools. Close a few more schools and consolidate others after this move. Most high Schools are not at capacity.
*Except for the ones that are, you know, OVER capacity. My school—fourth largest in the system—simply cannot do this.*
7) Freeze all pay for 4 years.
*Inflation has averaged 2-4% for much of the past decade. A 4-year freeze means losing, conservatively, 12% of current buying power. On top of the 4% you suggested above, I would see a 16% decrease in my relative income. Again, until “Concerned” and others of its ilk choose to cut their own incomes by 16%, this remains an absurdity.*
8) Have employees pay a greater portion of healthcare.
*Right. After our incomes have been cut. Hah!*
9) Outsource janitorial services in all schools.
*This was done back in the Vallas days. BTW, before privatization the man who cleaned my hallway did an excellent job. After Vallas privatized the custodians, this same gentleman saw his hourly wage cut by 40% (from $14 to $8.50 per hour). He responded by doing about half the work he had done previously, and building cleanliness suffered. By the end of the year, he had found another job. These are already some of the lowest-paid people in the schools. Paying them even less will have a very small impact on the $900 million deficit.
These are not popular options...
*Hah! These are not even sensible options. And they won’t make up for that huge gap between revenues and expenses.*
kugler
The victims of my local CPS Elementry school are going home a 1:45 P.M. every day! The local CPS High School students are on their way home at 2:30 P.M.
CPS should not get one dime more in funding until they make it a condition of employment that the children of ALL CPS employees attend their neighborhood CPS school. Two of my neighbors are CPS 'Education Professionals' who sent their children to private elementary schools and in the fall will be sending them to private High Schools. They will not even consider subjecting their children to the system they work in. And they say that is the norm, not the exception in their schools. One of which is Whitney Young!
lre-elected. Ron Huberman will have a little heart-to-heart with her and say, you're going to lose another 1000 members or you can keep all your jobs, but you'll have to take furlough days. All those professional development days??? Gone. She'll agree. She's already made a ton of backroom deals!!! She'll make them and so will any of these other folks who want to be president. Wait until members see what their insurance bills are going to look like. READ YOUR CONTRACT, kids. You're in for a big surprise!!!
What school is this?
Top teachers now make $90,000 plus another $30,000 in pension and benefits plus 5 weeks of paid vacation plus 11 weeks of unpaid vacation.
Principals make even more plus 7 weeks of paid vacation plus pension and benefits plus very little work for 11 weeks (if there's no summer school).
Cut back on everybody.
http://unocharterschools.org/charter_school_faq%E2%80%99s.aspx
"“Do you have to pass an entrance exam to be accepted to a Charter School?"
No. Charter Schools are not like magnet or private schools and do not require students to take any admissions tests. Any student in Chicago who would like to attend a charter school may do so. However, just like other public schools, some charter schools do have enrollment boundaries and some accept only a small number of students per year. If a charter school has more students apply than it has space, it will create a waiting list and hold a lottery before school starts to admit students."
http://ywlcs.org.whsites.net/faqs/index.php#students_Q1
"1. How can I become a YWLCS Student?
YWLCS is a non-selective, public charter school and is open to all young women entering grades 7-10 and living in the city of Chicago. YWLCS does not accept applicants beyond the 10th grade. If you are interested in becoming a YWLCS student, you are required to turn in an application and attend a New Student Open House by Friday, March 26, 2010. If we receive more applications than we have spaces available, we will hold a lottery on Wednesday, April 1, 2010. For the 2010-11 application and detailed step-by-step application procedure, please visit our Admissions page."
http://www.urbanprep.org/admissions/
"Admissions
Urban Prep Academies operates non-selective enrollment high schools that admit students via lottery. "
You are joking, right? Teachers who make 90K have been in the profession for 30 years with at least a masters degree. That is if they can make it that long. (half of all teachers leave the profession in 3 years because it is so challenging). Principals work all summer. Most principals work 12 hour days and then come in some on weekends too. Believe me, 99% of all CPS employees are NOT overpaid.
Plus you are forgetting all the times we purchase needed items for our classrooms with no reimbursement. I used to spend at least $200-300 a month on every thing from books to ink for the printer to coats for kids who didn't have any.
You try teaching for a week and see if they are paying you enough. Jeez!
http://www.facebook.com/l.php?u=http%3A%2F%2Fwww.youtube.com%2Fwatch%3Fv%3DzB1YpfcqiiQ&h=60aba
...i know techincally maybe public schools are different but why arent we getting the media attention afforded these guys?? where is Operation Push and all the other "union" politicians?
read article. a layoff is a layoff!
http://www.time.com/time/nation/article/0,8599,1865226,00.html
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