Chicago School Leaders
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 can’t possibly afford?
Truth be told, if board member Penny Pritzker’s Hyatt Hotels operated that way, they’d 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.”
Let’s 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 Union’s dues intake. The district will most likely lay off teachers to cut costs and make up for the loss of student enrollment.
The district’s 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 district’s draining of its reserves, huge pension costs and labor fight were blamed for that development.
The union’s 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. That’s no way to run government and certainly no way to run schools.
They are all heading towards gambling and there will be quite a bit of sausage grinding to be done to cut that bill. Hello, Madigan!
I thought there were Pritzkers that went to Latin.
The WSJ ran a piece about the rumors of Illinois asking for a FEDgov bailout.
They are all heading towards gambling and there will be quite a bit of sausage grinding to be done to cut that bill. Hello, Madigan!
Zerohedge piece that references the WSJ article.
http://www.zerohedge.com/news/piigs-america-illinois-preparing-request-federal-bailout
I can't stand it anymore.”
That would be one way and it's possible, but I'm betting on regionalization.Starting with the schools, the wealthy and well to do burbs will be absorbed into the Chicago govt district. By the end of this contract all Cook County school districts will be part of the Chicago school district for tax and spending purposes. The real progressive desire would be to bus the poor into the burbs and the white kids back to Chi. That will cause revolution, but limiting the control to money raised and spent will accomplish the redistribution the progs want.
All I can say is: eat your peas.../ S
All kidding aside, I live in Tampa Florida and my property tax is 2.2 K a year and I live in a nice 25 year old 2400 sq ft home with a in ground pool...
How you put up with that level of taxation I will never understand...
Here in Florida we would vote every bastard out...
the Rahmster -and nobody else anywhere near this “Chicago Shakedown” merely hasn't the bal%& to publicly state so...
that was the whole purpose of this strike right before Obama leaves office (hopefully!!) was to get We the People on the hook for their fantasy contract.
Believe me when I tell you I've been looking for a job OUTSIDE of Illinois for over a year now. Unfortunately for me, I'm 50 years old working in a "young man's" field these days which makes that task even harder....
I see this points, and I agree with the premise of unsustainability, but I'm irritated quite a bit about what's happening and so my rant just comes on automatically...:
This respect for the contract should go out the window when it turns out that the whole idea is founded on receiving taxes to pay for it, and the unions help elect the people who negotiate for the gov't. There's too much conflict of interest to make it a fair contract. We probably ought to demand that such deals, sweetheart or otherwise, be founded on annuities that are funded up front, and under the joint governance by the union and the gov't, with no future obligation of indenture for future generations of taxpayers.
Of course some gov'ts will just float bonds to keep the whole scheme working. That's fine as long as the risk is not subsidized. That means the bond must be honestly contracted with actual risk associated with how it's funded. For example a bond founded on the repayment by sales tax at a certain rate must only be paid by the identified sales tax, not indefinitely, and if the tax flounders then too bad for the bondholders, not too bad for the taxpayers. As it stands right now a whole lot of risk is completely subsidized on the backs of future generations, and that's reason enough to say these are dishonest contracts.
Dishonest contracts made with the government should be dishonored.
The Illinois budgets are expecting a federal guarantee of state borrowing under a 2nd Obama term.
Gov Quinn let this slip earlier in the week. I suspect Calif is similar.
They DON”T CARE how it’s paid for!
They got theirs and THAT is ALL UNIONS care about.
This kind of behavior is ingrained everywhere. I served on a big city marathon committee that was a public/private partnership. We kept losing money, and each year I would say, “This thing is going down and going away” and each year the governor’s (Dem) office would sneak funding in from somewhere and keep it going. I’m off the committe now but they still put the thing on every year and I’m sure it’s never paid for itself yet.
“But it’s a showcase!”
Blood in the streets before New Trier, Glenbrook (my HS), Glenbard, Hinsdale and a few others go the equalization route!
IIRC Michigan went that way a few years back.
Did any test scores change?
Truth be told, the public would realize these board members like Pritzker allow the unions to write their own ticket and in return, the unions give Pritzker and others, breaks when negotiating contracts of their employees.
In essence, the public picks up the tab of the savings in labor contracts for the board member's businesses.
I actually think that's the key point. And I would define as "dishonest" any contract that does not have a solid current source of revenue behind it. Future promises and revenue hopes don't count.
The teachers will just shake the kids down for their allowance money
like they shake the parents down for their rent money.
If I’m not mistaken, PP was also a bundler of below the reportable individual amount, (mostly from foreign contributors it was suspected) to BHO 2008.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.
