Chicago Public School Faces Nearly Billion Dollar Deficit by 2014

Chicago Public Schools voted on August 22 to spend $400 Million in reserves. This budget shortfall will be updated based on the teachers contract, which most likely means an even bigger shortfall. In addition, CPS will have to start making full pension payments again in 2014 after a 4 year pension holiday. The expected deficit that includes a $450 million pension payment is $861 Billion.

Employees are far and away the highest percentage of costs in a school district. This contract is the single most important budgetary item in getting this financial crisis under control. Across the board raises like the 16% raises CTU has already turned down. With the projected proposal, CPS estimates a $1 Billion deficit next year.

With the blatant attempt to hold the children, parents and city hostage by their strike action, the CTU is guaranteeing another round of animosity toward teachers. This is unfortunate, because many of the young teachers are now victims of the union bosses like Karen Lewis. This strike will usher in massive teacher layoffs next year, increased class sizes and most likely higher taxes, leading more residents, businesses and jobs to leave the city. CTU President Karen Lewis may as well right the names of the teachers to be laid off into the contract.

If CPS wants to prevent as many layoffs as possible and help keep the young struggling teachers in the system them follow the Zion Contract Model and the model of the private sector.  Below is the example framework provide to the CPS School Board on August 22, 2012. This model provides faster raises at the bottom of the pay scale and slows as you reach the top. It ensures that those at the top, who can afford it, pay their fair share to help those struggling at the bottom.

CPS Taxpayer Teacher Contract Framework

ForOurChildrensFuture.com