Robbing Peter to Pay Paul
When we first heard this, it sounded weird. Seeing it in print, it's even weirder:
- Mayor Rahm Emanuel’s proposal to have the Chicago Public Schools effectively borrow $500 million from the city’s teacher pension fund to avoid additional layoffs and classroom cuts has been shelved just days after it was introduced.
In a brief news release, CPS and Chicago Teachers’ Pension Fund officials announced Friday that “the organizations have reached a mutual agreement to end discussions on CPS’s proposed Fiscal Year 2016 pension payment schedule,” which was part of the borrowing deal.
Someone correct us if we're misunderstanding:
- The Teachers' Pension fund, notoriously short of funds....
- ...was thinking of "loaning" to the Chicago Public Schools....
- .....an organization that is not only near bankrupt, but has raised their share of the property taxes to the maximum the past how many years....
- half-a-billion dollars?
This is somehow legal? And how exactly was the CPS going to pay the fund back? Junk bonds? More tax raising? The more we see here, the more we keep thinking that someone is just hoping for a guy named Jack to show up with a handful of magic beans and a tale of a city in the clouds with a giant hoarding riches.
Labels: money questions