Jan. 20--Republican legislative leaders on Wednesday are expected to unveil proposals to allow Chicago Public Schools to declare bankruptcy and to put the financially struggling school district under state supervision, sources said Tuesday.
It's the latest move as Gov. Bruce Rauner and Mayor Rahm Emanuel continue to play the blame game over CPS' $480 million budget shortfall that threatens layoffs and has led to heavy borrowing to keep the state's largest school district afloat.
House Republican leader Jim Durkin and Senate Republican leader Christine Radogno are scheduled to unveil the proposals at a Wednesday morning news conference where an adviser said they'll "introduce legislation pertaining to the fiscal crisis in the city of Chicago and the Chicago Public School system." That also could include a provision allowing City Hall to declare bankruptcy as well, the source said.
Emanuel has spoken out against Rauner's bankruptcy idea in the past, saying instead the state should provide more money to CPS to cover its pension costs. That position hasn't changed.
"The mayor is 100 percent opposed to Gov. Rauner's 'plan' to drive CPS bankrupt. If the governor was serious about helping Chicago students, he should start by proposing -- and passing -- a budget that fully funds education and treats CPS students like every other child in the state," Emanuel spokeswoman Kelley Quinn said in a statement Tuesday.
Radogno brought up the bankruptcy option on last weekend's "Sunday Spin" radio show on WGN-AM 720. Declaring bankruptcy would allow the district to ditch its union contracts, which dovetails with Rauner's broader union-weakening push.
On Tuesday, Rauner was asked about a CPS bankruptcy bill and took shots at the mayor.
"I'm worried that the mayor is failing. The mayor gave in and caved on the (teachers) strike 41/2 years ago. Hurt the taxpayers, hurt the schoolchildren as a result. I'm very concerned about the trajectory of where we're going with CPS. And right now, the mayor's only real message to the state government is 'Hey, we failed financially our schoolchildren, send us half a billion dollars. That's not a reasonable position for the mayor to take,'" Rauner told reporters.
Rauner said he would be taking unspecified "action to protect the schoolchildren so they have good access and they have teachers and they have effective classrooms. And we're going to protect the schoolchildren and the taxpayers as well."
