CHICAGO — The Chicago Board of Education adopted a $5.2 billion fiscal 2013 operating budget Wednesday that drains most of its reserves to help erase $665 million of red ink, leaving it little flexibility to cope with a looming pension payment hike and teacher demands for bigger raises.

Ahead of its sale earlier this month of $470 million of new money general obligation bonds, all three rating agencies took a dim view of the district's plan to dip so deeply into reserves, especially given its looming fiscal pressures.

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