Junk Bond Status
On August 28, 2025, Chicago Public Schools (CPS), the fourth-largest school district in the US, passed a $10.2 billion budget and is facing a $743 million deficit. Prior to the budget passage, the big three credit rating agencies each rated CPS General Obligation (GO) Bonds “non-investment grade speculative,” also known by the more pejorative title “junk bonds.” CPS bonds received a Ba1 rating from Moody’s and a BB+ rating from both S&P Global and Fitch Ratings.
The name “junk” refers to the risk that investors face that CPS will not make interest payments or repay the principal when the bond fully matures. To offset this risk, junk bonds offer high interest rates to attract investors. This is especially significant because GO bonds are backed by “the full faith and credit” of CPS, meaning the district promises to use all existing revenue to pay back the debt and, if necessary, raise new taxes to pay the debt.
And since this is Chicago, run by incompetent morons and people who couldn't pass Econ 101 with a open book and all the answers, this means a MASSIVE tax hike is coming.
Soon.
And taxpayers will get even less return on their "investment" in future generations of leeches.
Labels: money questions
posted by SCC at 12:05 AM
20 Comments:
So just one of the reasons my tax bill ain't came in yet. They was waiting on whether it would pass
Close the CPS down and make it all private.
It's the Chicago way....
CPS renowned for a less than stellar product created by communists.
Junk school district
Junk teacher's union
Junk teaching results
Junk bonds
Fitting of a democrat run town
Bankruptcy Johnson
A common claim, at least to this commentor, is that our property tax rates are set as a percentage of assesed value, referenced to current year fair market value.
Thus, property tax bill amount increasing as fair market property value increases.
Perhaps this is no longer, or, not ever so.
Rather, the percentage is determined by the totality of demanded property tax revenus? With the tax rate being only defined after said totalities are calculated?
Thusly, if fair market values on which the assessed values are based, upon which the property tax amounts are caluculated, are insufficiently high enough, the stated as a percentage tax rate must be greater then previous property tax rate?
So, the property taxing authorities cannot honestly claim that no property tax rate increase has occured, merely an increaee in fair market value, thus an increase to assessed value, thus an increase to actual tax bill?
Chicago is going to go Bankrupt. The Democrats spent too much money on pet projects to get themselves elected for too long.
If you are 50, retire and start something else. It’s the best decision you can make. Rip the bandaid off!
The generations that you can’t demonize really appreciate all that we do for them. They continuously strive to give back & pay it forward to all the help and benefits that have been given to them for nothing.
Don’t worry our pension will be fine!
Don't forget the teachers union coming up with the idea of taking out a payday loan to cover the shortage and the mayor tried it. Thank god the school board had some common sense. Remember you get what you pay for.
Plenty of better investments available. Municipal Bonds, Utilities, Lottery Tickets.
Junkiedy junk junk!
DOGE CPS before they get any more money. 10.2 billion dollars and they want more? Area 51 would like to have a budget like that...
Saw even Canty Grade School up in Dunning is now tanking. The locals are bailing out, as more migrants started attending.
I thought the lottery funded education?
Lotto to the rescue
They will pick your pockets somehow.
I just can't wait to leave Shitcago and Crook County!
we are 2,000 short but the teacher get to keep all the under performing school and incompetent and dysfunctional teachers. We have a racist mayor who only cares about the illegal and the teachers union while he bankrupts the city
School Vouchers needed here! CTU and CPS are useless! $30 K per student. ARE YOU KIDDING! Mayor Pinhead is the sock puppet of CTU!
We can thank Toni Preckwinkle for this TURD in 5th floor!
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