Mayor: CPS should take loan to cover $175M pension contribution for non-teacher staff

CHICAGO (WGN) — It’s a $175 million question: who should pick up the tab on a Chicago Public Schools pension contribution for non-teacher staff?

Mayor Brandon Johnson’s administration is pushing hard for CPS to pay it, and they’re warning that if the city doesn’t get the funds before March 30, it might close its books on 2024 with a deficit. He recommends the school district take out a loan to cover the cost.

“It’s no secret that we have been pushing for the Board of Education to responsibility of their workers, that’s not a secret,” he said.

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CPS CEO Pedro Martinez, at odds with the mayor and in a legal battle with the Board of Education over his duties, does not want to take out a loan to cover the payment. Ultimately, however, the final decision will be made by the partially elected, partially appointed school board.

“The Board of Education has options. Now that has not been articulated from the CEO but it’s clear that they do, and we’re going to work with the Board to explore all these options,” Johnson told reporters.

In a letter to parents last week, Martinez argued the payment would use up money needed to fund a new contract for the Chicago Teachers Union.

City Council is divided on the pension payment. Some alders have hinted the city should consider withholding CPS funds until they make the payment. Others think the city must step up.

“Trying to tell them that they have to take out a $175 million pension payment means they either have to make cuts in the middle of contract negotiations or potentially refinance or borrow money to pay off a debt,” said Ald. Andre Vasquez (40th Ward) “Neither of those are good options, and if you’re borrowing you could potentially bankrupt the system for future generations.”

Meanwhile, the Chicago Teachers Union is upping its heat on the district having finished the legal process needed to vote to authorize a strike.

“I share the frustration,” the mayor responded when asked if he believes the CTU would strike with him, a former member, as the city’s chief executive. “There are individuals that are not working in good faith on behalf of the expectations that the people of Chicago have. … The people of Chicago have spoken, they have. They trust my vision for public schools.”

No strike vote has been taken and both sides continue working towards a deal. As for the pension payment, a report commissioned by the school board found that as many as 10 to 11 district-wide furlough days would be needed to cover the cost of the pension payment.

The board meets on Thursday.