Posted on 06/11/2015 12:32:20 AM PDT by Cincinatus' Wife
A member of the Illinois General Assembly has proposed a bill that would allow Chicago’s deeply troubled public school system to solve its massive projected budget deficit of $1.1 billion by declaring bankruptcy.
The House member is Ron Sandack, a Republican from the pleasant Chicago suburb of Downers Grove, according to WLS-TV.
“This knee jerk reaction to always say ‘let’s just raise taxes,” Sandack told the ABC affiliate. “That’s where a bankruptcy can actually be helpful.”
Sandack’s matter-of-fact recommendation comes as Chicago Public Schools, the third-largest taxpayer-funded school system in the nation, faces a grave and immediate financial crisis.
The bulk of the $1.1 billion deficit is a mammoth $634 million pension payment which will come due on June 30.
Chicago Public Schools doesn’t have enough money to make the payment. It also has no reserve fund.
Sandack’s legislation would allow Chicago Public Schools and other cash-strapped school districts across Illinois to seek Chapter Nine bankruptcy protection. Federal bankruptcy judges could then order debt restructuring, which could include partial or full release from pension obligations.
“We can’t tax our way out of this problem,” Sandack told WLS. “We need additional, broader relief.”
(Excerpt) Read more at dailycaller.com ...
Governor Walker: “No reason” changes he’s championed to public education can’t be pushed nationwide.
"MADISON — Governor Scott Walker says in an opinion column that there’s “no reason” changes he championed to public education in Wisconsin can’t be pushed nationwide....."
Related:
“....Nearly every state has horror stories of bad teachers who just can’t be fired because their laws make it so there’s no legal grounds for dismissal.
In Queens, N.Y., one public school teacher was not fired for physically abusing his first grade students. Instead, he was sent to anger management, fined $2,500 and allowed to teach first grade again. When parents found out, the school was publicly shamed into removing him from the classroom. Because of tenure laws, the school still couldn’t fire him, so he was placed on “administrative duty.”
He was still paid, but not for doing his job. Wouldn’t you call that profiting from failure?
That’s only one example, but the problem is prevalent enough that seven families sued the state of New York to overturn the state’s teacher tenure laws. Their case has been ongoing since it was filed in July 2014. It was inspired by Vergara v. California, a case in which the state’s tenure, dismissal and layoff statutes were ruled to be in violation of the state constitution’s equal protection clause....”
http://www.washingtonexaminer.com/public-schools-profit-from-failure/article/2565989
SECTION 5. PENSION AND RETIREMENT RIGHTS
Membership in any pension or retirement system of the State, any unit of local government or school district, or any agency or instrumentality thereof, shall be an enforceable contractual relationship, the benefits of which shall not be diminished or impaired.
Very hard to see how going bankrupt and restructuring debt to reduce the cost of the pension plan (which by necessity would require pension payments to be 'diminished or impaired') would be held Constitutional by any court reading the State Constitution.
This is a mess that only the people of Illinois can fix with a clear view of reality and the courage to tell the public unions that they have caused this debacle and they will stop drinking off the gravy train.
Illinois needs their Constitution amended and their pension programs slashed across the board.
They’re walking the plank.
I have always thought it was so telling of who we have as a POTUS when he chose to head the US Department of Education, the superintendent the worst (Chicago), or one of the worst, state departments of education - an object lesson on why we don’t need a US department of education. According to the US Constitution education is a matter for the states and local communities.
There is no sector of this nation that he hasn’t damaged.
As a resident of this sh*thole named Illinois -- that's exactly what needs to happen in order for this State to finally deal with the pension mess.
Previous attempts to pass laws to enable changing the pensions have been struck down by the courts for precisely this reason.
But then, I'm only here in this sh*thole for another 749 days at which point I retire, sell the house (or burn it down if it doesn't sell to collect the insurance) and leave this state in my rear-view mirror, never to return.
Exactly right. Chicago spends almost 2x the amount per child than almost every other school district in the state.
For that, the Chicago Public School system has one of the WORST graduation rates in the country.
Let 'em go belly up because more money is NOT the solution -- that's been proven!!
Arne Duncan took the years of progress that Paul Vallas made while head of the Chicago Public Schools, slammed the gear into full reverse and mashed the gas pedal to the floor.
But then, that's exactly why Obama chose him. Fellow "Chicagoan" and he could be counted on to destroy the schools nationally. An uninformed, ignorant voter is a Democrat voter you know!
(That's also becoming increasingly apparent for the Republican Party, but that's a topic for another time.)
I had a discussion with a teacher here once. She told me she had nothing to worry about because her pension was guaranteed by the Illinois constitution.
I told her that was great and when the state is finally completely broke she could trot on down to the bank and try to cash her copy of it.
The irony of the conversation is that she’s a math teacher. But the loo on her face was priceless.
L
L
I have a few acquaintances (not really "friends" but we've known each other a long time) that worked for the State of Illinois. One worked for the Secretary of State (retired), another an Illinois State Police officer (also retired), and a few of the local County Sheriff's out here in Will County (one retired, two still active.)
They all know at this point that they're going to have to give up SOMETHING out of their pensions and it's only a matter of time before it happens. Whether the State declares bankruptcy (not out of the question, and Illinois might well be the first to do it) or the State Constitution finally gets changed to allow changes to the State Pension system, it's just a matter of time.
Of the two scenario's, I just cannot see Madigan and Cullerton giving an inch on the State Pension system or allowing changes to the State Constitution. State workers/former state workers are their bread and butter core constituents. They get protected at all costs (which means: to the detriment of the rest of us poor taxpayers.)
BTW I for one like it that Rauner is playing hardball with Madigan and Cullerton. We'll see how long that lasts.
I like it, too. Rauner I mean, at least so far.
L
Federal bankruptcy law trumps the Illinois constitution, under the supremacy clause of the federal Constitution.
Damn....... what kind of corruption magic will develop in the next 19 days?
I suspect that taxing dead voters might help raise the money
They'll just figure out a way to tax the ones that haven't been born yet some more.
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.