5 reasons why Illinois politicians should reject a Chicago Public Schools bailout

By Ted Dabrowski, John Klingner
A clean stopgap budget – without a bailout for CPS – will help the 2 million Illinois children and families waiting to hear whether school will start on schedule in the fall. And until CPS passes necessary spending and pension reforms, giving any additional money to the system will only reward officials’ mismanagement and reckless behavior.

TAGS: budget, CPS: Chicago Public Schools, CTU: Chicago Teachers Union, education, Mike Madigan, municipal pensions, pensions, Rahm Emanuel

Brexit and Chicago’s potential bankruptcy

By Ted Dabrowski, John Klingner
Pension funds aren’t immune to the volatility of the stock market. Even before Brexit, Moody’s warned that low investment returns are already putting Chicago’s pension funds at risk. A major stock market correction or another recession just might put Chicago and CPS over the edge if their already-underfunded pension systems collapse.

TAGS: bankruptcy, Chicago, municipal pensions, pensions, Rahm Emanuel