(CHICAGO) Chicago Public Schools officials say they have a proposed budget for fiscal 2017 that is balanced.

However, the proposed $5.4 billion budget released Monday is based on the Chicago Teachers Union accepting a contract similar to one the union rejected earlier this year.

Schools CEO Forrest Claypool says that without certainty on the district’s labor costs, “we have to make, and do make rational assumptions.”

The rejected four-year contract would have required teachers to contribute the full nine percent of each paycheck to their pensions. It also would have curbed some automatic pay rises.

Union president Karen Lewis says teachers will not accept lowered benefits and lower pay, noting the rejected contract transferred pension contributions to teachers that would result in a 7 percent cut in pay.

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