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A fiscal cliff of their own making

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* One smart thing state leaders did during and since the pandemic is to not put much one-time federal money into ongoing base spending. Not so with Chicago Public Schools. From Chalkbeat

Next year, CPS plans to spend the last $300 million of its $2.8 billion allocation of federal COVID money, but will still face a $391 million deficit. CEO Pedro Martinez signaled recently that hard cuts, such as for critical building repairs, could be ahead but he wants to protect classrooms from losing resources.

Looking back, more than half of Chicago’s federal COVID money went to staff salaries and benefits. In an interview with Chalkbeat, Martinez said the federal COVID dollars helped the district avoid cuts because of a longstanding structural deficit – when expenses exceed revenue. […]

The district has not yet detailed how it will fill its looming $391 million deficit. That’s the shortfall after using roughly $300 million in federal COVID money still left to spend.

Ralph Martire, executive director of the Center for Tax and Budget Accountability, said the district shouldn’t have plugged the federal money into operating costs, such as salaries, because that created a cliff – a sudden loss of money that could mean the loss of programs and staff that directly impacts students.

“It’s very disruptive, right?” Martire said. “What message does that send to the kids? It creates a lot of unintended and hard-to-anticipate issues.”

Martire argues the district should have used the money to pay for one-time costs, such as critical building repairs. The district might have to delay such repairs in response to budget challenges, Martinez said at a recent event about the district’s Latino students.

Martinez told Chalkbeat he is proud of the choices the district made in spending federal COVID money, pointing to the recent research around student growth in Chicago and crediting the “amazing work” of principals, teachers, and students.

“What the evidence is telling me right now is that we used the resources in a way that our students are doing even better today than they were prior to me coming here,” he said.

While those last two paragraphs are very positive news, it’s just not sustainable.

posted by Rich Miller
Thursday, Apr 11, 24 @ 10:48 am

Comments

  1. RTA (CTA, Metra and PACE) have no plan except for go to Springfield for mre cash. Good luck.

    Comment by James the Intolerant Thursday, Apr 11, 24 @ 11:15 am

  2. I get it. Teachers are underpaid, hard to recruit, hard to retain and we don’t have a workable way to fund CPS non-staff operations, but that was just down right irresponsible. If I was JB or a member of the GA and saw that empty hat shoved at me, I would turn on a soundtrack of crickets.

    Comment by levivotedforjudy Thursday, Apr 11, 24 @ 11:26 am

  3. CTA did the exact same thing.

    Comment by Just Me 2 Thursday, Apr 11, 24 @ 11:47 am

  4. Just kick the can down the road. It works if you take action to correct the problem, but no action was taken and no action is contemplated.

    Comment by The Professor Thursday, Apr 11, 24 @ 11:47 am

  5. What amazes me is the scrutiny that most of us face from the ISBE for financial issues while CPS and a few other large districts continue to wet the bed when it comes to use of funds.

    Comment by JS Mill Thursday, Apr 11, 24 @ 11:48 am

  6. meanwhile, as I understand it, they will allocate money on a per school basis not per student basis seemingly in response to school closings under two mayors ago. not very fiscally savvy district.

    Comment by Amalia Thursday, Apr 11, 24 @ 11:49 am

  7. I know local budgeting can’t rely on the federal government but… in January of 2025 Democrats may control the House , the Senate, and the White House. It could be even sooner with that ultra thin GOP majority in the House.

    Comment by Steve Thursday, Apr 11, 24 @ 11:59 am

  8. Maybe teach financial literacy in schools to have the students help figure out how to pay the bills sn/

    Comment by Frida’s boss Thursday, Apr 11, 24 @ 12:08 pm

  9. Martinez patting himself on the back seems to be a theme with this administration.

    Comment by low level Thursday, Apr 11, 24 @ 12:19 pm

  10. Martinez goes on a diatribe explaining the fiscal irresponsibility of him and CPS, then follows that with breaking his shoulder by patting himself on the back. How irresponsible the administration is in this school district is frustrating.

    Comment by Lurker Thursday, Apr 11, 24 @ 4:14 pm

  11. “CTA did the same thing” — Yes, but that was exactly what those federal funds were intended to do: fill a temporary revenue shortfall caused by plummeting ridership. That’s a very different case than CPS.

    Comment by Ben Tre Thursday, Apr 11, 24 @ 4:50 pm

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