Dead Broke
Would you like to see the scary road that Chicago is headed down? Read this article.
- Chicago Schools Are Dead Broke
There you have it. The Chicago Public School system (CPS) is broke. Even after Mayor Rahm Emanuel took a knife to the CPS budget last summer, cutting away almost half a billion in spending, the system still faces a $500 million shortfall.
District officials have come up with the brilliant solution to fund their operations by issuing bonds, as if that will bring in more tax revenue or lower their expenses. Bond buyers would have the promise that CPS will use its “full faith and credit” to repay the bonds.
There’s only one problem. It’s a lie, and the district officials know it.
The term “full faith and credit” means that a borrower will use all assets available to repay a debt. But Chicago’s school system, in the footsteps of Detroit two years ago and now Puerto Rico, has no intention of foregoing other expenses to pay bondholders.
Read it all.
Labels: money questions
posted by SCC at 12:01 AM
37 Comments:
Several prominent state officials have called this a manufactured crisis and da ballerina never lets crisis go to wast.
But hey thats alright Daley already spent over 600 million on the hole in the ground at block 37, now the chiseler shortness of finger one wants to start up the high speed train from the airports. but were broke. 2 billion in tiffs this fuck has.
Sister in law is a teacher. Constantly complaining about how they get the shaft from Chicago. I asked how she can complain when the average Chicago teacher salary is $73k while teachers in smaller cities might be lucky to make $40k. No good reason given except that kids are shitty, they "work" all weekend and summer. Oh really? I work all summer. I work some weekends. I don't have a pension or tenure or really low contributions for my benefits. Go shit in a hat. Maybe Karen Lewis can help you wipe.
"Read this article" and "Read it all". WHAT ?
That must be a five minute read right there. That's asking a lot of the CPS grads. Be realistic.
From the Aprox $4b the cps borrowed in the past 24 months, the interest alone is..... $725,000 per day. (4b x .065) / 365 = $725k.
That's just the past $4b with the last $725m at 8.2%. And that's just the interest. They still have to pay back the principle.
All figures approximates and really fucked up. I figure the CPS is going to close its doors at the end of this year and fire everyone then hire them back at 1/2 the rate. Min wage pay for everyone, except the 16,000 admin workers.
Already planning on moving family to suburbs. This can't be fixed. Going to camp out with homeless by foster and lsd. What a fucking disaster.
Only in Chicago could they fuck up a $6b per year budget. Every politician in this state should be removed from office and replaced at Random. We couldn't do any worse.
How do you spell D E T R O I T?? Does this mean that thousands of families may have to soon take up home schooling?
CPS MATH TEST
Question 1) Jean-Claude takes a train from Buffalo to Chicago. While in Chicago, he runs CPS. He "mutually" agrees to resign after a year and a half, getting $250,000 severance. Barbara then gets hired, and closes up to 50 schools, suggesting savings of $560,000,000. Rahm then cuts $500,00,000 from CPS' budget. Barbara steers contracts worth $40,000,000 to her former employers. Barbara receives $23,000,000 in kickbacks. Rahm then tries to sell $725,000,000 in bonds to pay CPS bills. How much will your taxes go up? Show your work.
Question 2) Rahm, Richie, Barbara, Jean Claude, Arne, Tim, and a festival of inept democrats have been running CPS into the ground for decades. How much lube will it take to shove this tax increase up Joe Citizen's ass?
a) a jar of Vaseline
b) a bottle of KY Jelly
c) a can of Quaker State 10W40 oil
d) all of the above
o
I thought the lottery was going to take care of this?
Chicago Teachers Union. Another openly communist group, just like the ACLU. See a pattern here yet?
Start laying off teachers, end of story. Public school is just for breakfast and lunch and sitting in a class pretending to learn. In fact just round up all the "students" in the gym under the supervision of one or two "teachers" till dismissal every day.
Ehhh....whatever happened to money from the lottery was supposed to help the chicago public school system? Where did that money go? And do any of you youngsters out there remember that?
Don't worry, the police pension fund will be stuffed full these high grade investment grade bonds.
They will have a high rate of return (because they are very high risk), so they look good on the books.
And CPS will pay off the bond interest for about ten years.
That will give Rahm some distance and deniability by the time they inevitably DEFAULT and screw the retired police.
What is the worst that could happenn?
I am surprised Rahm hasn't sold all the land and buildings off under a cockamamie lease back scheme?
Maybe the land won't be that valuable in a few years?
It is just a temporary cash flow problem.
Not enough of your cash is flowing to them now.
Just give them a little time, they will screw you good.
"...foregoing other expenses..."
Why start now?
Despite the article, the State will eventually write a blank check to CPS. The budget nonsense is coming to a head. Madigan and Cullerton will pass a CPS bailout package, Rauner will veto it and it will be overidden. This is an election year
"This, like everything else that is wrong with this state and city, is all clearly Bruce Rauner's fault," said Michael Madigan.
Do you mean "Really" Dead Broke, or "Dead Broke" as Hillary and Bill were when they left the White House. That kind of Dead Broke is different from what we would normally perceive Dead Broke to be. Democrat Hillary's "Dead Broke" entailed millions of dollars in book royalties and $250,000 per speech in speaking fees. Regular, common man Dead Broke. Baby"G"
I hope the kids start suing the teachers for not giving them an education worthy of flipping burgers.
By 2019, CPD reduced to 4000 sworn folks/people.
Fuck all teacher's and there commie way's!
The cps needs a complete overhaul. They need to find out where my tax and lottery money are going and who's stealing it
Investigate them like everyone is investigating the cpd. No one will tho !
How does a local system that runs Part time hours, top loaded with six figure administrative staffing and Federally funded go broke?
(Catholic Charties is even complaining they ain't getting no money from Illinois.)
Keep giving out Sanctuary Cuty handouts and this is what happens.
Rahm wants You to pay Your fair share to pour your tax money into a failed system without regard for your own obligations.
If the CPS needs money, cut admin salaries, executive perks, forget about air conditioners, cut the food waste, 4 party concession suppliers and start having the enrolled pay a little towards their fair share.
Fcking thieves.
Education should be paid for by parents sending their children to private schools or home schooling. Eliminate the fraud, waste, and abuse of this communist system that produces only debt and more free loading communists.
This tempest in a teapot will pass. It is all temporary. Chicago's school children can continue to look forward to a world class education.
Feds need to investigate,follow the money,find the crooks!
Anonymous Anonymous said...
This tempest in a teapot will pass. It is all temporary. Chicago's school children can continue to look forward to a world class education.correction thrid world class education
Question 2) Rahm, Richie, Barbara, Jean Claude, Arne, Tim, and a festival of inept democrats have been running CPS into the ground for decades. How much lube will it take to shove this tax increase up Joe Citizen's ass?
a) a jar of Vaseline
b) a bottle of KY Jelly
c) a can of Quaker State 10W40 oil
d) all of the above
excellent options......might add
e) the garage door lube that they sell
f) a Hershey candy bar (to evoke great memories of the Hershey Highway)
g) a butt tattoo that says, "slippery when wet!"
A huge part of city debt is vendors. Why should this city pay $5 for all the supplies they need on amazon, when policy forces all city depts to purchase same supplies from approved vendors only. We must pay $50 for the same thing. Joke. All of it.
2/19/2016 01:10:00 AM Genius!
Broke my ass. New schools and athletic fields being built all year long.
Don't worry because soon the state will take it over d then he will name Rev Meeks to run it further into the ground.
Then they can blame him for not teaching the kids or funding it properly.
CPS is broke, but, they can still pay drunks like this guy who also gets to live In Naperville:
https://www.dnainfo.com/chicago/20160219/dunning/teacher-was-drunk-hit-and-run-that-hurt-2-girls-on-way-school-police
the legislature needs to change the law to allow local units of government to declare bankruptcy. That solves a lot of problems by itself.
Bankrupt the CPS and start from square one - including the contract and pension.
Let people go - no one should have a "job for life".
Cut the waste in both personnel AND policies. CPS is one screwed up bureaucracy long overdue for cuts. Not little cuts made with a little knife.
Bring out the Machetes and meat cleavers.
The public school is the greatest discovery made by man. Horace Mann.
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