Chicago school officials to dip into reserves to fund budget Posted on July 24th
Chicago Public Schools leaders won’t ask homeowners to pay more in property taxes this year and instead will raid the district’s reserves by $100 million, cut hundreds of non-classroom jobs and streamline bus routes in a move that could mean new start times at up to 72 schools.
The $5.1 billion budget unveiled Wednesday increases spending by 4.3 percent from last year, most of the boost going to cover a 4 percent teacher pay hike that’s part of a five-year contract. Schools chief Arne Duncan and Mayor Richard Daley wanted to spend an additional $97 million, but shelved that plan after failing to pry the money out of Springfield and facing a political climate in which City Hall raised property taxes last year and sales tax increases for Cook County and the CTA took effect this year.
“The economy is hitting everybody hard . . . today we know people are hurting and they are having a hard time trying to make ends meet and we refuse to add to that burden,” Duncan said. “This year they simply need a break.”
The scaled-back budget includes nearly $40 million to expand programs. The High School Transformation initiative designed to strengthen instruction will get $16 million more, a program to turn around underperforming schools will receive an additional $7 million and another to help incoming freshman adjust to high school will see a $6.6 million boost.
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