Aug. 10--Chicago Public Schools on Monday announced a $5.7 billion operating budget that relies on $480 million in pension relief from state lawmakers by Jan. 1.
To close a budget gap the district said exceeds $1.1 billion, CPS will raise property taxes to the maximum amount allowable -- resulting in a $19 increase for the owner of a $250,000 home, the district said -- while pushing hundreds of millions of dollars in debt into the future. The proposed operating budget is down about $68 million from last year, the district said.
The budget also draws from a dwindling savings account and counts on tens of millions in dollars in surpluses from special city taxing districts.
"We cannot cut our way to a balanced budget," district CEO Forrest Claypool told reporters in a conference call. "This budget closes a $1.1 billion structural operating deficit by relying on our leaders in Springfield to agree on a comprehensive solution."
"Unfortunately, if Springfield fails to do its part, we will be forced to close a $500 million gap later this year with a mixture of more unsustainable borrowing and even deeper cuts."
School finance officials said the district will need to use other borrowing to manage its cash flow for the year.
Schools officials Monday said the district has started to lay off teachers and support staff impacted by the $200 million in cost cuts announced earlier this summer. About 480 teachers will be laid off, the district said, though the district said it expects to have 1,450 vacancies that laid-off teachers can apply to fill prior to the beginning of the school year.
Public comment on the budget will be taken at three meetings around the city Aug. 18. The budget will be presented to the Board of Education at its Aug. 26 meeting.
jjperez@tribune.com
