Obama Picks Schools Chief

President-elect Barack Obama yesterday announced his nomination of Chicago Public Schools’ Arne Duncan to serve as his education secretary.

Chicago Mayor Richard Daley tapped Duncan to take over as chief executive officer of Illinois’ largest district and nation’s third-largest district seven years ago after the departure of Paul Vallas. Vallas hired Duncan as his deputy chief of staff in 1998. Duncan previously managed the Ariel Education Initiative, which aids impoverished children.

Duncan is a longtime friend, adviser, and basketball opponent of Obama who helped shape his education policies during the presidential campaign. He has advocated that local districts receive more flexibility from the federal No Child Left Behind program’s goals.

Duncan, who like Vallas does not have a teaching background, is a proponent of reform who has won both praise and criticism for measures he has undertaken to help boost CPS’ academic performance and improve attendance and graduation rates. All city schools have made strides during Duncan’s tenure.

He has advocated the closure of poorly performing schools, promoted programs that reward good students with cash, and endorsed a high school for gay students. Critics, including some teachers, contend some of his plans disrupt the education process and say he doesn’t give teachers and parents enough input.

During Duncan’s tenure, the district has continued on track with its massive $5 billion capital program with the opening of more than 50 new schools over the last seven years. The district has struggled to come up with capital funds, given a four-year drought in new state capital spending.

CPS decided this year to delay a new-money bond sale to help save on debt service and to dip into reserves to close a deficit in its $5.14 billion operating budget approved for fiscal 2009. The draw on reserves will bring the balance in that account down to $380 million in the next budget.

Fitch Ratings last spring revised its outlook on the district’s A-plus credit to positive from stable. Moody’s Investors Service rates the district A1 while Standard & Poor’s rates it AA-minus.

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