Chicago schools made a massive teachers pension payment on Friday that’s been looming over the district all year.
Chicago was only able to make the $464 million payment by painful midyear cuts and a high-interest short term loan that will weigh on next year’s budget.
The pension fund will get another $250 million in August after city property taxes are collected.
Chicago schools will owe the pension fund even more next year.
Civic Federation President Laurence Msall says the school district desperately needs the state to pass a budget and stabilize its finances. The state took its first steps toward finally passing a budget yesterday.
“If the state doesn’t pass the budget it is hard to see how the Chicago Public Schools will be able to meet their obligations in the coming year,” he said.
The school district is waiting on state action before releasing a comprehensive spending plan for the upcoming school year.