CHICAGO — The Chicago Public Schools proposed a $5.6 billion budget for fiscal 2014 that relies on the maximum allowed property tax hike, spending cuts, and using $700 million in reserves, including a first-time draw on a reserve labeled for debt service, to erase $1 billion of red ink.

The budget, which must fund a $400 million increase in teacher pension contributions following the expiration of a three year partial payment holiday, was presented to the Chicago Board of Education at its monthly meeting Wednesday.

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