Chicago Schools Avert Cuts

Chicago Public Schools chief executive officer Ron Huberman this week said the district will be able to avert some teacher layoffs that would have driven up elementary class sizes due in part to the restoration of $57 million in state categorical funding aid.

The funds also will allow the district to restore full-day kindergarten programs. The Illinois State Board of Education and Gov. Pat Quinn restored the funding last week, lowering the district’s projected fiscal 2011 deficit to $370 million from $427 million. Some program and staff cuts will still be needed and high school class sizes may still rise.

CPS is still waiting on Quinn to finalize overall school funding levels in the state’s fiscal 2011 budget. The General Assembly approved a budget that leaves it to Quinn to cut spending to balance the budget. As the district awaits the governor’s action, it is also waiting on state aid payments totaling $352 million.

Illinois’ liquidity crisis has resulted in delayed payments to schools, human services providers, transit providers and other vendors. The state’s fiscal 2011 budget leaves $6.4 billion of bills unpaid at the close of fiscal 2010 today and doesn’t require the state to get caught up until December.

To fully avert teacher layoffs, the district is calling on the Chicago Teachers Union to forgo salary hikes. The Chicago Board of Education earlier this month voted during an emergency meeting to authorize the establishment of an $800 million line of credit to boost its liquidity. It also approved other measures giving Huberman extraordinary powers to manage through the district’s budget crisis.

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