Dive Brief:
- A new report from the llinois State Board of Education staff finds the financial situation of Chicago Public Schools isn't bad enough to warrant a state takeover, largely because no two consecutive years of negative operating fund balances exist for CPS.
- The report also points out that such balances are real possibilities for fiscal years 2018 and 2019.
- CPS officials remain largely opposed to any state takeover, and instead are asking for a restructuring of the CPS funding formula.
Dive Insight:
After untrue projections of a possible total of 479 teacher layoffs over the summer of 2016 were widely reported by the press, alongside the phasing out of district pension fund contributions for teachers, just 62 school staff were laid off by Chicago Public Schools. CPS was expected to “run out of money” last summer, but the district is still open for business.
The political fight now pitting state education leaders against Illinois Gov. Bruce Rauner will likely grow hotter until a decision is reached. According to Reuters, "the decision not to declare the district in financial difficulty could suggest recognition by the Rauner-appointed state school board that it lacked proper legal footing to take over CPS in the first place," meaning that a takeover will not happen. Yet without a solid plan regarding how to restructure funding, the district's finances are expected to get a lot worse before improving.
