"CHICAGO – Chicago Public Schools plans to borrow $389 million to make it through the current school year, money officials hope to pay back with overdue state aid payments.
The borrowing will be expensive because of the district’s junk bond rating, and would only serve to avert a financial crisis until next fiscal year, when CPS will face another massive budget deficit, the Chicago Tribune reports.Chicago Chief Financial Officer Carole Brown said the board will vote Wednesday on a plan to borrow $389 million to help cover a $721 million payment to the Chicago Teachers’ Pension Fund.
...District officials are banking on funds from a new $250 million pension property tax levy this summer to cover the rest.
...“They would not divulge the source of the borrowing, sure to resemble a payday loan, its exact amount or the interest rate expected to be paid by a district in which its credit card was believed to have been maxed out,” the news site reports..."
No comments:
Post a Comment