Aldermen will be told Friday that the Chicago Public Schools will get through the end of the school year and pay for teacher pensions by short-term borrowing against $467 million in late block grants owed by the state, the Chicago Sun-Times has learned.
Mayor Rahm Emanuel had considered but ruled out a bridge loan from tax-increment financing districts amid concern it would endanger the city’s already shaky bond rating, City Hall sources said Thursday. He also decided against making a partial payment to the Chicago Teachers Pension Fund, concerned it would trigger a lawsuit and yet another drop in CPS’ bond rating.
WLS-AM 890 Connected to Chicago host Bill Cameron reacted to the bargain deal, scoffing at the idea. “It’s just awful. They’re going to get the credit card out again, and borrow again,” Cameron told Big John and Ray. “They’re going to pay what’s going to come close to juice and not solve the problem, instead of…living within their means. It’s just awful.”
