Under pressure from City Council, CPS board poised to authorize pension reimbursement

Chicago Public Schools (CPS) Board Poised to Authorize Pension Reimbursement Amid City Council Pressure

The Chicago Board of Education is set to consider approving a contract to reimburse the city for a $175 million pension payment, but only if the City Council agrees to declare a surplus of over $1 billion in tax increment financing funds. This decision comes after CPS Board President Sean Harden sent a letter to City Council members earlier this week, expressing support for an unprecedented TIF surplus and committing to paying the district's portion of the Municipal Employees and Benefit Fund pension payment using TIF funds.

The CPS board approved a budget that commits to paying the District's portion of the pension payment "with TIF surplus funds that exceed $379 million." However, Mayor Johnson's proposed budget calls for declaring a TIF surplus of at least $1 billion, which would allow CPS to reimburse the city for $140 million in pension contributions made over the past two years.

If the City Council fails to declare the necessary TIF surplus, CPS would only be able to reimburse the city for the minimum amount. The proposal has sparked significant opposition from City Council members, who fear that it could derail or delay improvements to local schools, parks, and libraries.

"I'm not about to wipe every last one of my TIFs... I'm not willing to gut all my TIFs to save Chicago Public Schools," said Education Committee Chair Jeanette Taylor. Rules Committee Chair Michelle Harris was also vocal in her opposition, stating that she is loyal only to her own district and would not support a TIF surplus without a conversation with the City Council.

Budget Committee Chair Jason Ervin expressed similar sentiments, stating that he wants the CPS board to take responsibility for paying their pension obligations. While Ervin acknowledged that the CPS board's initial commitment of $379 million in TIF funds was "a step in the right direction," he emphasized the need for a signed intergovernmental agreement before moving forward with the budget.

The fate of the proposal hangs in the balance, with many City Council members seemingly unwilling to support the TIF surplus without further discussion and negotiation. As the CPS board considers authorizing pension reimbursement, it remains to be seen whether the necessary TIF surplus will be declared, ensuring that Chicago Public Schools can continue to receive the funding they need to operate effectively.

I just don't get why the City Council is being so tough on this pension thing... back in my day, we didn't have all these fancy funding plans and TIFs, but we still managed to make ends meet and give our schools a decent education . It's like they're putting all their weight on one thing - the surplus funds . I mean, what if that doesn't work out? Will the schools just have to suffer because of it? It seems like a lot of back and forth going on, and not much progress is being made . Can't we just find a solution that works for everyone?

This is just a typical example of politicians playing games with people's money... They're all worried about their own districts, and not about what's best for the schools. TIF funds are meant to be used for infrastructure and community development, not as a back-up plan for pension payments. It's like they expect CPS to just make do without any support. What's next? Asking them to pay their own healthcare bills too?

This city council stuff is getting so complicated . So basically, Chicago schools want to pay back some money they borrowed from the city for pensions, but it depends on if the city says they have enough extra cash (TIF funds) or not . If they don't, they can only pay a bit of that money back. It's like if you were lending your friend some money and now they want to pay you back, but first you need to make sure you're not going to miss out on any other dough . Some council members are all about keeping the extra cash for their own district, while others think schools should take responsibility for paying their pensions . It's a bit of a standoff right now...

I'm like totally not surprised that the City Council is trying to hold up this pension reimbursement deal. Like, come on, $1 billion in TIF funds? That's a lot of money! And let's be real, if the CPS board doesn't have their act together and pay their pension obligations on time, it's gonna be super hard for them to get more funding in the future. I mean, nobody likes being stuck with debt, right? So yeah, I think it's a good idea for the City Council to make sure there's enough TIF surplus before they let CPS reimburse the city. It's all about accountability and making sure everyone is on the same page.

I'm not sure what's going on here, but it seems like a classic case of "who gets to decide" . The CPS board wants to reimburse the city for $175 million in pension payments, but only if the City Council agrees to declare a TIF surplus. It's like they're playing a game of musical chairs, where the last person standing gets to decide who gets what . But don't you think that the schools and kids should be the ones getting priority funding instead of politics?

Umm yeah so like I'm reading this article about Chicago Public Schools wanting to pay back a $175 million pension debt using tax increment financing funds... sounds pretty sketchy to me , I mean if CPS board president Sean Harden says it's okay to use TIF surplus funds for the payment but City Council is being all like "nope" then what's gonna happen? It seems like they're not willing to compromise and just wanna save Chicago Public Schools from paying up . And yeah Education Committee Chair Jeanette Taylor saying she won't wipe out her TIFs... I get it, but come on . I guess we'll just have to wait and see if the CPS board can find a way to make this work without totally screwing over City Council

this is a big deal, but i dont think its just about the schools... its about how the city and cps are handling their finances . $175 million pension payment? thats a lot of cash . but if cps has to pay that out of tif funds, what does that mean for other important projects in the city like parks and libraries?

i think its great that cps is trying to take responsibility for their pension obligations , but we need a more sustainable plan in place . declaring a surplus of over $1 billion in tif funds seems like a stretch . what if the city council fails to declare it? will cps just get stuck with paying that much out of their own budget?

ill be keeping an eye on this one, but i hope we can find a way to balance the books without sacrificing our community's needs

I'm like totally stoked that the CPS Board is considerin' this pension reimbursement thingy, but I gotta say, I'm a bit confused about the whole TIF surplus deal . It's like, if they declare that billion-dollar surplus, it's gonna be a big win for CPS, and then all those schools and libraries can get the funding they need to thrive . But if the City Council doesn't come around, it's gonna be like, "oh noes, schools are gonna suffer!" . I mean, I get why some of the City Council members are hesitant, but c'mon, guys! You gotta think about the kids and all the people who rely on those schools for a good education . It's not just about gutting TIFs or whatever, it's about doin' what's best for the community, you know?