Massive school debt: It's Chicago's problem today, but it will likely be our trouble before too long

 

Chicago's public schools are in a serious financial situation, according to Macquline King, the school system's interim superintendent.

The school system is facing a budget short fall of nearly $734M, or more than $201M in debt than previously reported, King announced June 26. In addition to that debt, the school district is carrying more than $8.6B in long-term debt, in the form of bonds, mostly for building construction and improvements. And there's more.

The school system also has a significantly under-funded pension program. As of late 2024, the pension system was funded at 47.2%.

In announcing the new numbers, King promised to make addressing the debt a top priority, but offered no details. The Chicago Public School Board approved a four-year, $1.5B contract with the Chicago Teachers Union in May. The union represents more than 25,000 teachers.

There's significant debt before the school board and firm commitments on the table. The school board needs to address both.

The state's 2026 fiscal year begins July 1. The state's new $55B budget includes $11.2B for the Illinois State Board of Education (up from $10.8B), according to Chalkbeat.org, which covers public education in Illinois. 

Illinois Gov. JB Pritzker just announced that he intends to seek election to a third term next year, but he's also made it clear that he's considering a run for president in 2028. As a Democrat, JB thinks taxpayers throughout Illinois should help Chicago residents address their financial challenges - which not only the school system, but the city's transit system, the city's pension system for the police and fire departments, and the city's government. In other words, the pain must be shared, and "we're all in this together," as elected officials often say just before they screw the taxpayers. 

And while the budget shortfall facing the Chicago school board appears at first glance to be a Chicago problem, it is in reality an Illinois problem, and possibly, in time, a national problem, one requiring federal tax dollars. 

That's how I see it. 

-- Thank you for reading. Your comments and questions are always welcome.

A few notes and comments from Mr. B

A view from my window

I live in Batavia, near the Fox River, and enjoy the sights and sounds that come with being near a natural playground for birds and other animals. I enjoy seeing the many different birds, and listening to their songs, especially in the hours near daybreak.

In recent weeks I have seen a woodpecker, cardinals, robins, a blue jay, a pair of red-tail hawks. and many others. My favorites are the mourning doves that are building a nest on my veranda. They are beautiful and find their cooing a comfort.

After Biden, what's next?

Joe Biden's April 25 decision to enter the race for the Democrat's nomination for president in 2020 brings the number of candidates in the field to an even 20, and makes one wonder if any more Democrats will join the fray. In other words, what or who is next?

I don't know the answer, I don't like to make predictions. I sometimes struggle to keep track of the 20 candidates now. I couldn't name each of them, and there's some I haven't heard a word about in months. I don't object to a big field. As far as I'm concerned, all these candidates make things interesting and entertaining.

It's fun to see what some of the candidates are promising voters at this stage of the process. It will be interesting to see what some will be promising in the months to come. 

JB, Think Big Illinois and taxes

Think Big Illinois is a group funded, in part, by Illinois Governor JB Pritzker and directed by a man who helped run Pritzker's 2018 campaign. The group currently is trying to persuade residents to support JB's effort to replace the state's flat-tax with a progressive tax that he promises will benefit most Illinois families.

And Think Big Illinois appears to be spending some big dollars are direct mailing. During the last two weeks, at least four large, glossy mailers have arrived at my house, including two different pieces that arrived the same day. I do not support Pritzker's efforts, but I take a few minutes to look at each of the mailers. They are well-produced and easy to look at, but they provide few details about JB's plan and almost no information about Think Big Illinois, a tactic that always makes me leery. 

Considering Democrats hold both houses in the Illinois legislature, JB's proposal is  likely to win approval this spring, regardless of what residents think of the plan. And that makes me think about the money JB and Think Big Illinois are spending on the a series of mailers.

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