CPS Fails Math....Again
- The promise of cleaner schools at a lower price has turned out to be just that -- a promise.
Chicago Public Schools’ three-year contract with Philadelphia-based Aramark to manage all school cleaning services is $22 million over budget, according to procurement and finance records obtained by WBEZ.
Aramark has billed Chicago Public Schools $86 million for the first 11 months of its three-year contract. The first year price tag was initially set at $64 million.
But the people in charge think they're still "saving" money:
- CPS Chief Administrative Officer Tim Cawley denied the contract was over budget.
“No, we know we’re saving money now,” Cawley said. “There’s no question about that.”
District officials said they may not end up paying some of the bills owed to Aramark. Still, records show, the payments made through the end of December that have been officially closed out total $71 million.
Sure - because spending $71 million on a $64 million bid is everyone's definition of "saving." And the $86 million in bills submitted? Even more "savings!"
Or at least it is in the Chicago Public Schools. We can hardly wait until they hire CPS accountants to run our pensions - we'll be rich!
Labels: corruption
posted by SCC at 12:33 AM
27 Comments:
I know that contracts are supposed to go to the lowest bidder, but aren't they supposed to provide a bid that they can deliver on? If not, what's the point of the process? Is it to give the jobs to the most connected, lowest bidder? Or is it legitimate?
I bid that I can clean all the schools for one dollar. that's right. one dollar. but if i happen to go over budget, i know the city will still pay.
HAHAHAHAHAH
What happened to the old time school janitors? As I recall the janitors at my grade, middle and high school did an excellent job of keeping the schools clean and tidy. They took pride in having a clean school.
Why do I feel like things are rapidly getting out of control, and the tipping point is near for Chicago/Cook Co.?
ot how did the CTA busdrivers get into our credit union.went to office on Harlem several bus drivers in line and in uniform doing bussiness
Everything be fine.
That "extra money" is fo' kickbacks like on every contract.
That's why living here is so high - you gots to pay "extra" on everything.
You heard it here........CPS will declare bankruptcy this, or next year. Everybody talks about the $550 million Rahm owes police and fire pensions, but in FY 2016 he owes the teachers fund $750 million and they're already $1 BILLION in the red. And as an added bonus bankruptcy allows Rahm to rip up the teachers who struck against him labor contract too.
Lower wages to the privatized and union busted worker and more profit to the corporate owner equals saved money in the elite world.
“No, we know we’re saving money now,” Cawley said. “There’s no question about that.”
Oh, no, none at all.
*
Set aside another quarter-mil for Barbara Byrd-Benneton or whatever her jumped-up hyphenated name is. Slick move of hers, the sudden "paid leave of absence."
At least until she's sent to prison -- maybe she'll enjoy the 29-cents-per-day Aramark menu there.
Soy-protein substitute everything -- cold.
But Rahm Rauner will blame teacher salaries and their fat pensions for the financial crisis.
Corruption, incompentence, clout contracts, move on, nothing to see.
Go into the Agricultural school on a Tuesday night and see the boys locker room! Toilets overflowing with feces, garbage all over floor, the place is a pig pen! This is suppose to be a select enrollment school. And they say the girls locker room is just as bad!
I would sure like to see what they charge on a weekly basis to clean a school, who sets the standards . Maybe it is time tohire local residents to do the work.
I'd like to see Tim's Math 101 grade.
Staggering,’ Says New Report on Chicago’s Pension Contribution Shortfalls
By: Mark Glennon*
A research report recently issued by Nuveen Asset Management provides another take on the total annual liability Chicago taxpayers would face if they properly funded pensions for the city’s overlapping layers of government. Brace yourself.
Chicago has been contributing to its pensions only about one-forth of what Nuveen calls Annual Pension Cost — “the amount determined by actuaries to keep the plans solvent.” (We note that S&P recently said essentially the same thing.) The unpaid portion of the city’s pension contribution exceeded $1.2 billion, “a figure representing an astonishing 43% of the city’s general fund budget,” says Nuveen. But that’s just for the city itself. Add in the pensions for the school system, the park district, the Metropolitan Water Reclamation District, Cook County and the forest preserve district, and the annual contribution shortfalls total $2.1 billion.
“The property tax hike required to adequately fund Chicago’s pensions is staggering,” Nuveen says, though it notes that current rates are somewhat lower than neighboring suburbs. If paid for by property taxes, an average Chicago owner of a $400,000 home would have to pay an additional $3,355 to properly fund area pensions — a jump of $49%, Nuveen estimates.
.
That analysis does not include whatever Chicagoans may have to pay to help fix state-level pensions, which have an unfunded liability of roughly $200 billion, including healthcare benefits. Nuveen also notes that its analysis was made based on out-going accounting standards and 2013 numbers, the most recent available. New accounting standards will mean worse numbers and the pension deficits, along with the contributions required to fix them, grow each year. Finally, Nuveen ignored the RTA and CTA which also underfund their pensions.
Structural budget deficits at Chicago’s various layers of government are in addition. We continue to long for a credible, total analysis of those and pension deficits for all overlapping layers of government in Chicago. Chicago Public Schools alone, in its most recently reported year, had a loss in net position of over $1.1 billion with an operating fund deficit of $513 million.
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If anyone thinks the City and property taxpayers will foot the entire tab for pension shortfalls you are nuts. Start considering a hike from 9% to 12% at least. Pay a little more soon or perhaps lose a lot more later.
The dots are so easy to connect and they all lead to Daley Friends & Family Inc, the parent company of Rahm's Right of Way Hideaway, LLC. (a proud sponsor of Madigan & Burke Magic Laundry)
CPS had/has contracts with among many other, Windy City Electric, (now banned by Rahm), Windy City, a woman owned business, has about 5 other "Companies" doing other various contracting business with Illinois government agencies. One venture was brokering pints of milk for CPS schools. What diversity this Company has from electric to milk.
What seems interestingly coincidental, Windy City has a small office at 7225 W.Touhy, just across the driveway at 7243 is another woman owned company that has numerous contracts with the City, McDonagh Construction Demo. It's all legitimate.
Reform Rahm isn't on top of his game.
He's here for another 4 years, now what?
Oh, like the Illinois state lottery right?
You underbid the competition and later after the bid is won you demand that the contract terms be reset higher to the level your competition bid.
Oh we couldn't possible run things at that original bid hahahaha.
Holy shit! $71 million dollars to clean the schools and that is for only 11 months worth of work? They must be hiring about 50 guys per school at a rate of $100 per hour and buying the most expensive cleaning supplies. Wish I was connected so I could start a cleaning company!
That seems an awful lot like Rahm's math regarding our pensions. The only difference is Rahm flat out refuses to contribute ANYTHING into our pensions until HE gets the REFORM that HE wants.
Janitorial staff has been cut. They are spread thinner and have less time to clean as thoroughly as they did before. I've seen this in several schools.
Anonymous Anonymous said...
ot how did the CTA busdrivers get into our credit union.went to office on Harlem several bus drivers in line and in uniform doing bussiness
And that's why I got rid of my account years ago.
Rauner should follow the governor of Maine and cut every able bodied person off welfare after six months.
I work at one of the top schools in the city. The place is filthy, disgusting and dangerously unsanitary. Since the arrival of Aramak it has definitely gotten worse. They pretend to clean without actually cleaning.
Where's the Health Department?
This city is all about Contract Kick Backs, No BID, and the children are the excuse!
Anonymous said...
You heard it here........CPS will declare bankruptcy this, or next year. Everybody talks about the $550 million Rahm owes police and fire pensions, but in FY 2016 he owes the teachers fund $750 million and they're already $1 BILLION in the red. And as an added bonus bankruptcy allows Rahm to rip up the teachers who struck against him labor contract too.
4/29/2015 05:53:00 AM
I am not saying that the mayor does not want to do this, but he cannot do this without express permission from the Illinois State Legislature. On that note, a bill was introduced to make filing bankruptcy by government bodies ( the Board of Education is a taxing govt. body) easier.
Anonymous said...
But Rahm Rauner will blame teacher salaries and their fat pensions for the financial crisis.
Corruption, incompentence, clout contracts, move on, nothing to see.
4/29/2015 06:40:00 AM
Well, lets not blame the new governor for what the democrats have been doing for 20 years. And, yes, the teachers pay and benefits are part of the problem. Chicago teachers are very well paid with great benefits and a great work schedule. And, they have the power to strike and hold the community by the throat so they get more and more each contract. The teachers ignore the many studies out there that show advanced degrees and high paid teachers mean little in the education of the youth. It is almost impossible to get the reforms needed when the unions control the legislators with cash. It looks like the entire system will come crashing down soon under its own weight. And, yes, corruption and patronage, cronyism and nepotism in the school system have also contributed to this mess. The insider contract that ended the reign of Byrd-Bennet was totally unnecessary. The entire school board that voted for that contract should resign and we can start all over again. An elected board? No, the union would control that and it would be worse. We had one at one time, remember?
If anyone thinks the City and property taxpayers will foot the entire tab for pension shortfalls you are nuts. Start considering a hike from 9% to 12% at least. Pay a little more soon or perhaps lose a lot more later.
4/29/2015 08:06:00 AM
I think as time goes on more and more of the cynics will see that the pensions in government are not sustainable and will collapse. What most people do not realize is the fact that the pensions of CPD and CFD are the most underfunded and pay out the smallest benefits of all of the government pensions. Police and fire work the longest, do not have compounded raises and payout the least. Look at the alderman, the judges, the tradesman. Then look at the water reclamation district. It is a sad state of affairs.
You can throw another $15K lost by CPS into the mix as that's what the settlement was in the illegal strip search of Taft High School Special Ed. student in Dec, 2012. The illegal strip search was based on an supposed anonymous tip given to Taft security guard Hugo Feria. Feria then had Taft's Asst. Principal Susan Gross (now AP at Ogden School, wife of retired Chicago Police Commander Frank Gross who has strong Daley ties), an off-duty PO, and a PO assigned to Taft search the student in a men's bathroom at Taft.
Here's the link to what happened:
http://chicago.cbslocal.com/2012/12/05/parents-of-teen-strip-searched-at-school-sue-assistant-principal-police/
Also, Taft's LSC just OK'd $19K+ for the repaving of their Driver Ed. lot. This $19K+ went to the sole contractor used by CPS for such work. So, this is another no-bid contract CPS got involved in.
Check out Taft's LSC minutes to see the amount OK'd for this project here:
http://www.tafths.org/ourpages/auto/2007/10/12/1192197239841/2015-02.pdf
Well it is "saving" - just not as most normal people would define the word.
When normal people define it, it means putting THEIR OWN money aside in a savings account for future purposes, rainy day, etc.
When abnormal CPS and Corrupt Critters define it, it means that the taxpayers got overcharged for a service, and the service provider kicked back money to the corrupt critter, and the corrupt critter SAVED it in THEIR own personal account.
Got it now?
Usually when a bid comes and the contract is awarded, aren't you not supposed to pay anything extra. When my mechanic says it will cost $300, he knows he has to come under or at $300. Because anything higher he'll have to eat.
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