Wednesday, May 10, 2017

Chicago Public Schools may miss June pension payment

Illinois has a fabulous reform governor, Republican Bruce Rauner, who favors changing state law so municipalities and other Illinois government entities, such as school districts, can file for bankruptcy protection.

But state Democratic Party boss Michael Madigan, who has also been speaker of the Illinois House of Representatives for 32 of the last 34 years, won't even consider this sound idea. The public-sector unions, which of course are just an arm of the Democrats, vehemently oppose permitting local government bankruptcies.

Rauner or no Rauner, bankruptcy will come to Chicago Public Schools--the mathematics allow no other option. It's better to do so now before thing get even worse.

From the Chicago Tribune:
Chicago Public Schools has enough cash to complete the school year but the system is still short hundreds of millions of dollars needed to make a pension payment due at the end of June, Mayor Rahm Emanuel's top finance official said Tuesday.

CPS and city officials say that's because the state still owes CPS about $467 million in aid that has been held up by Illinois' budget impasse.
Illinois of course has its own problems.

From my post at Da Tech Guy:

Puerto Rico a dire warning for blue states

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