Fitch believes a strike by the Chicago Teachers' Union (CTU) could make it difficult for Chicago Public Schools (CPS) to balance its need to manage expenses with its goal of improving educational standards. Contract talks between CPS and CTU are scheduled through Friday, Sept. 7 and a strike is scheduled to begin on Monday, Sept. 10

if an agreement is not reached. CPS is the third largest school district in the U.S. The district has reportedly allocated $25 million for a strike contingency fund. Fitch's concern is that the resolution of the strike could be costly and leave management with even less flexibility to reduce spending to a level in line with revenue expectations.

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