Tuesday, June 30, 2015

Chicago Public Schools lays off 1,400 so it can make pension payment

Dirksen School, Chicago's
Northwest Side
In order to make a massive pension payment today, Chicago Public Schools announced it will have to lay off 1,400 employees. Even before these firings there were already more retirees collecting pensions than current workers paying into the pension system. If that sounds unsustainable--it is.

The devil's bargain Democratic politicians made with the teachers unions is a disaster for Chicago taxpayers. And for Chicago school children.

From CBS 2 Chicago:
The Chicago Board of Education made its pension payment on schedule Tuesday, but at a cost — massive layoffs.

The meet the $634 million obligation, the board used a combination of borrowed money, $200 million dollars in cuts and layoffs it promised before talks with the Chicago Teachers Union broke down last week.

The board is expected to lay off 1,400 employees, and Interim Schools CEO Jesse Ruiz said in a statement that classrooms will be impacted.

"As we have said, CPS could not make the payment and keep cuts away from the classroom," he said.
Bonds issued by CPS have junk status.

President Obama's secretary of education, Arne Duncan, is a former CEO of Chicago Public Schools.


Anonymous said...

The shape of things to come-and it couldn't have happened to a more deserving union

Anonymous said...

Agree completely - morally and financially bankrupt - they deserve it just like Detroit. More liberal run Ponzi schemes will follow.

Anonymous said...

It's for the children...

Anonymous said...

And just how are they going to make the NEXT payment?

Anonymous said...

Dilbert's boss said that people are the company's most importance resource. When they want to inflate earnings per share they just fire lots of them.

There are lots more 'human resources' where those 1400 came from. I wonder if they fired classroom teachers or administrators? I'll bet the Transgender Hispanics Against Global Warming Program Coordinator kept his/her/its job.