CHICAGO — Fitch Ratings’ Chicago-based lead Midwestern analyst of tax-supported government credits, Melanie Jopek Shaker, resigned last week to take a newly created position with the fiscally stressed Chicago Public Schools as its deputy chief financial officer.
Shaker, a director, joined Fitch in 2003 and most recently led its coverage from Chicago of tax-supported Midwestern credits. Shaker received the annual rising star award from Women in Public Finance earlier this year for showing leadership as a former president of WPF in 2008 and speaking for Fitch on emerging credit issues while also providing career counseling and working as a mentor.
“We are very sorry to lose her but it’s a great opportunity for Melanie,” said Amy Laskey, managing director and head of the tax-supported group. The rating agency is now without a Chicago-based analyst in the tax-supported team, as another member of the group, Dana Sodikoff, recently moved over to the health care team.
Other members of the tax-supported group that cover Midwestern credits are based in New York, and though Fitch intends to hire replacements for both Shaker and Sodikoff, the new additions likely will be in New York, Laskey said yesterday.
Shaker, 31, will start at CPS on Monday. The district issues its debt under the name the Chicago Board of Education.
Shaker was hired by chief financial officer Diana Ferguson, who took over the district’s fiscal reins earlier this year after working in financial positions in the private sector, including Sara Lee Corp.
Ferguson could not immediately be reached for comment on how Shaker’s hiring affects the responsibilities of treasurer David Bryant and debt manager Sandra Angelus.
Shaker will work on rating agency relationships, budget issues, and debt management. “I really enjoyed my seven years at Fitch but this was a great opportunity to work with Diana and to work for an issuer with duties that really fit well with my experience,” she said.
Shaker joins the CPS finance team as it is struggling with a budget deficit that could run as high as $600 million depending on whether the state cuts education funding. The district originally faced a $900 million shortfall, but pension reform legislation approved by Illinois lawmakers and signed by Gov. Pat Quinn allows the district to forgo a portion of its pension payment over the next three years, trimming about $300 million off the shortfall.
Quinn sought to avoid public education funding cuts in the state’s fiscal 2011 budget through an income tax hike that was rejected by lawmakers. He then turned to a proposed cigarette tax increase and tobacco securitization to avert cuts, but only the tobacco financing was approved late last month before lawmakers adjourned.
CPS’ efforts to keep its long-term $5 billion capital program on track will be aided by Chicago’s issuance of $175 million of general obligation bonds this summer under the $1 billion Modern Schools Across Chicago program announced by Mayor Richard Daley in 2006. The program taps tax-increment financing revenue to pay for school building projects located within existing TIF districts. The district also is planning a new money sale that has not yet been sized for later this year.
The district’s $4.3 billion of outstanding debt is rated AA-minus by Fitch, Aa2 by Moody’s Investors Service, and AA-minus by Standard & Poor’s. The outlook on all the ratings is stable.
