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FY15 Budget

Press Release

Reductions in CPS Central Office Spending to Fund Year One of CTU Contract  

 
CPS avoids cuts to classroom to cover $103 million in additional contract costs

 

October 5, 2012

 

Chicago Public Schools (CPS) today unveiled its plan to fund year one of the new Chicago Teachers Union (CTU) contract, reducing administration, finance and operations spending in the central office, avoiding cuts to classrooms as promised by CPS, the Board of Education and Mayor Emanuel.  Although the Chicago Board of Education approved the Fiscal Year 2013 (FY 13) budget in August, CPS management has amended the budget in order to account for these additional costs and will present the revised budget to the Board on Oct. 24, the next scheduled meeting.  

 

The CTU contract adds a total of $103 million to the FY 13 budget, all of which is tied to salary increases. In addition to considering the amended budget, board members are also expected to consider the approval of the new contract.

 

“We are maintaining our commitment to invest in, not cut from, our classrooms,” said CPS CEO Jean-Claude Brizard. “The budget is an ongoing process, and we will continue to work throughout the year to identify ways we can capture additional savings and increase revenue to address the long-standing financial challenges facing the District.”

 

The $103 million in salary increases includes:

 

  • $59 million for 3 percent Cost of Living (COLA) increases
  • $33 million for steps increases
  • $5 million for lanes increases
  • $6 million in salary increases for non-teaching CTU positions.


Savings and revenue identified to fund the first year of the CTU contract include: 

 

  • Operations: Reduce lunchroom costs and general fund subsidy ($11 million); Achieve additional procurement savings ($10 million)
  • Administration: Delay or cancel filling vacant, non-teaching positions ($8 million); Additional administrative reductions, targeting savings from printer consolidation, limiting equipment purchases, subscriptions and professional memberships ($4 million)
  • Financial: Capitalize interest on FY12 bond sale ($13 million); Sell surplus properties ($15 million); Debt restructuring ($42 million).

 

These savings and new revenues are in addition to the more than half-billion in savings already made by the District over the last year. 

 

The FY 13 budget passed by the Board in August addressed the District’s $665 million deficit while protecting and investing in key initiatives that drive student achievement such as the Full School Day, early childhood development and maintaining class size, while expanding high-quality school options across the District to give parents more choices.

 

CPS will also be required to hold two public hearings on the budget later this month prior to the Oct. 24 Board meeting. CPS will announce a public hearing schedule next week.

 

About CPS

Chicago Public Schools serves 402,000 students in 681 schools. It is the nation’s third-largest school district.

 

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Page Last Modified on Friday, October 05, 2012
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