Pharmaceutical Company’s CFO Joining Chicago Public Schools

CHICAGO — The chief financial officer of pharmaceutical wholesale company H. D. Smith will take over as CFO of Chicago Public Schools next week.

David Watkins has managed the finances at the privately held Springfield, Ill.-based company since 2009. He previously headed up the Chicago office of the management consulting firm MorganFranklin Corp., was chief operating officer at the marketing and advertising firm Maritz Inc., and was a partner at the accounting firm KPMG.

The district’s deputy CFO, Melanie Shaker, has served as interim CFO during the search to fill the position since Diana Ferguson resigned from the post in May.

Ferguson was one of just a few top administrators at the city’s sister agencies that Mayor Rahm Emanuel kept after his election early this year.

But Ferguson, who also was from the private sector, resigned after only a year on the job due to marriage and relocation plans.

Watkins takes over management of a district that is grappling with long-term fiscal challenges.

The board over the summer approved the $5.9 billion budget proposed by Chicago Public Schools’ new chief executive, Jean-Claude Brizard.

It closed a $700 million budget gap through cost cuts, canceling a collective bargaining raise for teachers, tapping the maximum allowed property tax increase, and drawing $241 million from reserves.

The district expects to close out fiscal 2012 with a $289 million ending balance.

CPS recently received both positive and negative credit news ahead of its sale last month of $400 million of new-money debt.

Moody’s Investors Service downgraded the board’s $5.7 billion of debt one notch to Aa3.

It cited mounting fiscal pressures from rising costs, state aid delays, and a high debt burden as it has undertaken a mammoth rebuilding of existing schools and construction of new ones.

The agency assigned a stable outlook in recognition of “disciplined budgetary actions” taken by the new and strengthened management team.

Fitch Ratings affirmed the board’s A-plus rating and stable outlook and Standard & Poor’s affirmed its AA-minus rating while revising its outlook to stable from negative.

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Illinois
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