Chicago Schools' CFO Resigns, Will Work Until Post Is Filled

CHICAGO — The Chicago Public Schools’ chief financial officer, Diana Ferguson, has resigned her position effective next week, but will continue to work on a pro bono basis until a replacement is named, officials said this week.

Ferguson was among just a few top CPS administrators who were kept on the school leadership team selected by Chicago Mayor Rahm Emanuel, who took office Monday. Her departure comes as the district is grappling with a $720 million deficit in its next budget. The mayor also appoints members of the Chicago Board of Education.

Terry Mazany is interim chief executive officer. The school board is soon expected to approve Emanuel’s nominee for the post, former Rochester City School District chief Claude Brizard.

CPS spokeswoman Becky Carroll said Ferguson’s resignation was tied to her upcoming marriage and an impending move to the suburbs. School employees are required to reside within city boundaries under Chicago law.

“The good news is that she will be here to help through the budget process and transition,” Carroll said.

Other members of the CPS finance team include budget director Christina Herzog, deputy CFO Melanie Shaker, and debt manager Sandra DeAngelus. Ferguson took over the district’s finances in early 2010 after working in the private sector, including as CFO for a division of Sara Lee Corp. and for Folgers Coffee Co.

CPS is facing a $720 million deficit in its next budget to cover the growing costs of teacher salaries and debt service amid chronic delays in state aid payments and expiring federal stimulus funds.

Fitch Ratings last year downgraded the school system’s $5 billion of debt to A-plus due to mounting fiscal challenges and a reliance on one-time revenues. CPS carries ratings of AA-minus from Standard & Poor’s and Aa2 from Moody’s Investors Service, both with negative outlooks.

For reprint and licensing requests for this article, click here.
Illinois
MORE FROM BOND BUYER