Dive Brief:

• Illinois State Representative Ron Sandack (R-Downers Grove) has proposed a bill that would allow local governments and school districts to file Chapter Nine bankruptcy petition. 
• The plan would allow the federal government to erase or restructure a district's debt, something Sandack believes Chicago Public Schools should consider doing.
• The district is the nation's third largest and currently has a deficit of $1.1 billion, owing $634 million in pension payments by the end of June. 

Dive Insight:

"We can't tax our way out of this problem, we need additional, broader relief," Sandack told ABC News. He says higher taxes are often viewed as the solution to school deficits, but he thinks there needs to be different types of options. 

Not everyone is for Sandack's plan. Some union officials believe the bill "is a backdoor attack on public worker contracts and pensions," according to ABC, while other opponents, like Chicago Mayor Rahm Emanuel, say it would be a distraction to file for bankruptcy.