GOP proposes bankruptcy and state oversight of Chicago Public Schools

Sherwood Elementary School,
South Side

Oh, bonds from Chicago Public Schools are rated as junk.

From ABC Chicago:

Senate GOP Leader Christine Radogno, House Republican Leader Jim Durkin and State Rep. Ron Sandack announced a proposal for the state of Illinois to take control of Chicago Public Schools.

The proposal would allow CPS to declare bankruptcy and pave the way for the state to take over. The school system is currently controlled by Mayor Rahm Emanuel, who has asked for financial help from Springfield.

CPS is facing a $480 million shortfall and a possible strike, if a contract can't be reached with the Chicago Teachers Union.

"I'm very concerned about the trajectory we're going with CPS and right now the mayor's only message to state government is, 'Hey, we failed to financially support our school children so send us half a billion dollars.' That's not a reasonable position for the mayor to take," Rauner said.

Among other things, union contracts can be renegotiated in a bankruptcy. Contractors are likely to get shortchanged in money owed to them, but many of them, perhaps most of them, are crony capitalists or worse who buy their way into the system. Rahm Emanuel's handpicked choice to run CPS, Barbara Byrd-Bennett, pleaded guilty last year for taking part in a kickback scheme. However, BBB is still eligible to collect a $140,000 annual pension.

President Obama's first Education Secretary was Arne Duncan, was formerly the CEO of CPS. Smelling the stench, the future first couple chose to send their daughters to a private school when they lived in Chicago.

Related post:

CPS doesn't know what happened to stuff from 50 closed schools