General Discussion

former9thward

(32,006 posts) Thu Jul 2, 2015, 12:59 PM Jul 2015

Chicago Cuts 1,400 Jobs as Pension Fight Drags On

CHICAGO—Mayor Rahm Emanuel on Wednesday said the nation’s third-biggest school district is cutting 1,400 jobs and boosting borrowing in response to the growing fiscal crisis facing Illinois and its largest city.

That followed a decision by city officials to make a $634 million payment due to the teachers’ retirement system before a Tuesday night deadline.

“These payments do not come without a cost,” Mr. Emanuel said. “There is a series of political compromises and patchwork over the years that can no longer continue.”

State and city pensions systems have long been underfunded, leaving the funds well short of the assets needed to pay promised benefits. Chicago schools have sought help from state lawmakers, who have considerable control over education spending and the pension systems. However, they so far have taken no steps to assist the city school system.

http://www.wsj.com/articles/chicago-cuts-1-400-jobs-as-pension-fight-drags-on-1435791297

4 replies

= new reply since forum marked as read

Highlight:

Chicago Cuts 1,400 Jobs as Pension Fight Drags On (Original Post) former9thward Jul 2015 OP

Heckuvajob, Rahmbo! KamaAina Jul 2015 #1

I don't think you know anything about this frazzled Jul 2015 #3

If he does the same thing to the police unions I'll believe him tularetom Jul 2015 #2

The teachers' unions were fully funded frazzled Jul 2015 #4

KamaAina

(78,249 posts)

1. Heckuvajob, Rahmbo!

Reply to former9thward (Original post)

Thu Jul 2, 2015, 01:00 PM

Jul 2015

frazzled

(18,402 posts)

3. I don't think you know anything about this

Reply to KamaAina (Reply #1)

Thu Jul 2, 2015, 01:49 PM

Jul 2015

And I'm not sure a brief explanation of a very complex situation will help you.

Essentially, the problem has to do with the state of Illinois and the unfairness of its funding structure. While the state, via taxes, pays for virtually every other school district's pensions, Chicago is excluded and the city must pay it alone. Emanuel made the current $620+ billion payment into the Chicago Teachers Pension Fund by the deadline, but doing so creates a terrible budget stress on the district and the city.

None of the jobs to be cut will be teacher's jobs. It's on the administrative side, cleaning, removing funds from new charter schools, etc.

This is a fight with the state, not with Emanuel. He didn't create this problem, and his hands are pretty tied in trying to fix it (the State Constitution, but that's another story).

tularetom

(23,664 posts)

2. If he does the same thing to the police unions I'll believe him

Reply to former9thward (Original post)

Thu Jul 2, 2015, 01:06 PM

Jul 2015

Otherwise, I'll continue to believe it's political retribution.

frazzled

(18,402 posts)

4. The teachers' unions were fully funded

Reply to tularetom (Reply #2)

Thu Jul 2, 2015, 01:50 PM

Jul 2015

with the payment the other day. There is no problem with unions.

Reply to this discussion