Chicago – December 15, 2024
Global credit ratings firm S&P rang the alarm on Chicago Public School finances last week, weighing in on the ongoing political gridlock between district leadership, the Chicago Teachers Union and Mayor Brandon Johnson with a warning: How the Board of Education opts to fund the CTU’s forthcoming contract will determine the financial health of the district for years to come.
“Failure to sustain structural solutions by either increasing ongoing revenues or containing costs to offset the financial impact of a new CTU contract could mark a turning point in the board’s recent positive financial trend and jeopardize its fiscal stability,” according to S&P analyst Ying Huang.
In other words, the board must identify a reliable source of new revenue or “scale down” CPS’ current $8.4 billion operating costs, according to S&P, one of three credit ratings firms whose determinations impact government agencies’ ability to issue bonds, which are often used to fund major one-time capital projects, such as new school buildings or fleets.
