Just default now! Chicago Public Schools pension fund sinks $1 billion deeper into debt

We know where this is headed. The payoffs to the Chicago Teachers Union--rewards from the Democrats for years of political contributions and supplying campaign workers disguised as delayed compensation, that is pensions, are already a tremendous burden to taxpayers.

Other than default, does anyone see a way out for the CPS pension fund? I don't.

Do it now. Default.

From Chief Investment Officer:

Chicago’s pension system has taken another blow as unfavorable investment returns have driven the Chicago Teachers Pension Fund (CTPF) $1 billion deeper into debt.

According to the Chicago Tribune, the pension system for Chicago teachers is now facing an $11 billion shortfall in a time where state law requires the CTPF to be 90% funded by 2059. With no indication of where the money will come from other than tax hikes and budget cuts, the CTPF is in the same predicament as other Illinois pension funds that make up the state’s $130 billion shortfall.

“We are aware of our obligations, and we will continue to meet our obligations for all of the pensions. But I think the biggest plan is to continue to lobby for additional funding to support our schools,” Chicago Public Schools CEO Janice Jackson told the Tribune.

The CPS had previously arranged an agreement with the state that deferred its annual pension payments, but once the fund’s health waned due to the deal, the fund has had trouble maintaining its obligations. The Tribune reports that a $700 million-plus contribution to the fund was covered by short-term loans from the district last year. In addition to the loans, the state also agreed to cover about $550 million in CPS pension payments, which will cost the state $230 million per year.

Let's take a look at the CPS CEO's statement again, “But I think the biggest plan is to continue to lobby for additional funding to support our schools.” More money for schools is always "for the kids." Even when the cash is needed for retirees.