Skip to comments.Chicago School Leaders Don’t Know How They’re Going to Pay for the New Contract!
Posted on 09/22/2012 6:40:08 AM PDT by Kaslin
The successful business leaders that sit on the Chicago Board of Education must have checked their brains at the door when they went into the negotiating room with the teachers union. How else could they possibly negotiate a contract that the school district cant possibly afford?
Truth be told, if board member Penny Pritzkers Hyatt Hotels operated that way, theyd be out of business. But, alas, this is government. They strike deals with unions and figure out how taxpayers will fund it later.
Reuters tells us:
Chicago public school teachers returned to their classrooms on Wednesday but thorny questions remained over how Mayor Rahm Emanuel and the cash-strapped school system will pay for the tentative contract that ended a strike of more than a week.
The three-year contract, which has an option for a fourth year and which awaits a ratification vote by the 29,000-member Chicago Teachers Union, calls for an average 17.6 percent pay raise over four years and some benefit improvements.
Average teacher pay is now about $76,000 a year, according to the district, which pegged the annual cost of the new contract at $74 million a year, or $295 million over four years.
The $5.16 billion fiscal 2013 budget approved by Chicago Board of Education last month closed a $665 million deficit by draining reserves and levying property taxes at a maximum rate, while also slashing administrative and operational spending.
Lets see: historically high pay, depleted reserves, maxed-out tax rates so what does the board negotiate? A 17.6 percent raise and benefit improvements! Hyatt Hotels may go bankrupt operating that way, but this is government!
The likeliest solution would be to slim down the district, which would directly impact the Chicago Teachers Unions dues intake. The district will most likely lay off teachers to cut costs and make up for the loss of student enrollment.
The districts financial problems are compounded by the fact that its credit rating was recently downgraded, making it more expensive for the district to borrow money. The districts draining of its reserves, huge pension costs and labor fight were blamed for that development.
The unions strike accomplished precisely what it set out to do: get a sweetheart deal from a scared school board that checked its business brains at the door. Thats no way to run government and certainly no way to run schools.
then why did they settle? unions had prices us and themselves out of the market.
aparently Rahmbo doesn’t plan to be around in 3 years when the bill has to be paid
raise those property taxes again- who wouldn’t want to live in Chicago and send their kids to the CPS!
Stupid headline. Stupid premise. Of COURSE they know how to pay for it. Or rather they know who besides them are going to pay for it.
A shrinking student population and a big fat teachers union contract in a state that dramatically raised taxes and is broke. What could possibly go wrong?
PRITZKER’S WENT TO PRIVATE SCHOOL. NO SURPRISE.
What does SHE care where the school money is coming from.....her stash comes from a hotel chain and Obama's stash comes from Heaven itself, untouched by human hands.
Thanks for making me laugh, because I have been in a bad mood for a long time! Here in Springfield, retired state employee acquaintances who have retired before age 60, are grousing about the possibility of having to pay more for their state retirement health care. I used to ascribe to the tenet that if a state worker was promised something, the state should fulfill that requirement. After living down here for a few years, I realize that these workers a) knew that they had a unsustainable deal and b) that they should have planned for it. Morons.
Raise taxes on everything.
Pritzker has problems with the unions at her hotels.
The Pritzkers I knew in Penny’s generation went to private elementary, but to New Trier for HS. The kids got a say for HS.
The children of that cohort that I knew, went to Waldorf for elementary and public HS (not in Chicago, but, obviously in very nice areas). Again, the kids had a say.
That is, in general, true. One of the foundations of a civilized society is the respect for contracts. Where would we be if an employer promised a worker $100 for a day's work, then was allowed to pay him just $75 at day's end?
That being said, the current public employee payment system is simply not sustainable. Perhaps each state needs some sort of limited bankruptcy option, which would allow for a limited reset of salaries.
But I'm guessing that things would have to get much worse for that to happen. Politicians today just won't risk losing votes to do it. Easier to kick the can down the road a bit.
Amazing - they had the unions cutting back on requests, effectively putting their backs against the wall, and they turn around and sweeten the deal above the original demands. Lunacy on display.
Exactly....I'm sure that was a mitigating factor when they approved the contract...
They will hold the american taxpayer hostage...by eventually telling Congress Illinois will have to declare bankruptcy...if they don't pony up...
Personally, we need to see states fail to get their spending in line...
Cut workers, supplies, books, and turn off the heat and lights to the buildings.
aparently Rahmbo doesnt plan to be around in 3 years when the bill has to be paid
What, he’s going to run for POTUS?
I live in Illinois and I couldn't possibly agree with you more! In the last 5 years my property taxes have doubled to over $9k/year on my home, and my income taxes doubled last year under the third corrupt governor in a row, Pat Quinn.
All told, I paid $57,962 in State Taxes (income, property tax) and all Federal taxes in 2011. I'm far from "rich" and these taxes are killing me. Yet, there are some who say I don't pay enough (while they pay NONE) and I should pay more?!
I can't stand it anymore.