Chicago Public Schools borrows over $1 billion--mostly to pay for pensions

Since any bonds issued by Chicago Public Schools are junk status--I wonder what rate CPS got for its massive loan?

From ABC 7 Chicago:

The Chicago Public School board has approved borrowing more than $1 billion for operating costs and its teacher pension payments.

The interim head of CPS put the district's financial woes in blunt terms at a meeting Wednesday night.

"Without the help of lawmakers in Springfield, we face the tough decision of paying our pension obligations or operating our schools at the caliber that we believe should be operated for our students," said Jessie Ruiz, interim CPS CEO.

The meeting, heavily-attended by parents, students, community groups and members of the Chicago Teachers Union, comes as the school board faces a Tuesday deadline to make a $634 million teacher pension payment.

A predessor of Ruiz is President Obama's secretary of education, Arne Duncan.

Hell of a job you've done, Arne. Great choice, Barry!

Loans, by the way, are supposed to be paid back. CPS is just kicking the can down the road.