Illinois governor eyes blocking Chicago school debt

Source: Reuters

Illinois Governor Bruce Rauner said on Monday the state has the power to block any debt offerings by financially distressed school districts, including the cash-strapped Chicago Public Schools (CPS), which has been dependent on borrowing to fund operations.

The Republican governor last week launched a financial probe of the nation's third-largest public school system through the Illinois State Board of Education. Rauner said the board has the legal authority to block borrowings by districts found to be in financial duress.

“The state board has never chosen to do that for the city of Chicago. I hope that never becomes necessary. But we’ve got to be ready to take action,” Rauner told reporters.

CPS officials could not immediately be reached for comment.

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Read more: http://www.reuters.com/article/us-chicago-education-debt-idUSKCN0VV1YQ