Chicago’s City Council is considering a proposal that might allow the City Treasurer to loan money to Chicago Public Schools. CPS Chief Forrest Claypool has warned that city schools may not open in the fall without extra money from the state— which seems unlikely to come through. A loan from the city— which is financially separate from the school district—could be a way to get CPS some cash. But the City of Chicago has its own financial problems: big unfunded pension debts and a junk-bond credit rating. A statement from the Treasurer’s office denies that the proposal is “a CPS bailout.”
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