Chicago Public Schools chief warns of billion-dollar deficit

Feb 26, 2010 — Chicago Tribune

Kristen Mack

Feb. 25, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- The head of the Chicago Public Schools today laid out a dire budget forecast for next school year, with a deficit that could reach more than $1 billion if Gov. Pat Quinn's proposed budget becomes law.

Without concessions from CPS unions and major pension relief, the Board of Education may be forced to lay off teachers and cut programs, CEO Ron Huberman said in a press conference at CPS headquarters this afternoon.

"We are potentially looking at a billion dollar deficit, based on the governor's proposed budget," Huberman said.

Despite having balanced the 2010 budget, CPS will cut another 500 jobs by the end of March, Huberman said. He said the cuts are a measure to prepare for the looming 2011 deficit. Most of the jobs are expected to be supports jobs both at the central office and citwide, said Huberman, who would not be more specific about what positions are expected to be cut.

Huberman also announced an additional three weeks of unpaid furlough days for non-union central office and citywide staff this calendar year. The affected staff already have had six furlough days this school year.

CPS plans for next year so far do not take into account Gov. Pat Quinn's preliminary budget proposal which would "only make the situation worse," Huberman said.

If CPS is not able to get concessions out of the unions on issues of pay and benefits, as well as pension changes from the state legislature, between now and July, "all that is left is class size and programs and our hope is not to get to those," Huberman said.

If the schools increased class size from an average of 30 today, to about 31, that would translate into the a layoff of 600 teachers, and savings of $40 million, Huberman said.

The state is behind in payments to schools by some $725 million for the current school year, creating cash flow problems in many districts.

The state's pile of unpaid bills totals about $4.2 billion.

But the outlook for the next year is even worse. Many Illinois school districts are preparing pink slips and slashing programs as they try to prepare for the triple whammy of the state's budget woes, a dramatic decline in federal funding and a cap on local property tax revenue.

Given the state's bleak financial picture, the Illinois State Board of Education has proposed a budget that is basically flat for the upcoming fiscal year, the first time in eight years it has not asked for an increase in the "foundation level," the basic per-pupil funding stream. State lawmakers will make the final decision, but some are warning that schools should brace for even less money than they have this year, as fixed costs continue to rise.

-- Kristen Mack

Newstex ID: KRTB-0197-42383083