CHICAGO -- A fiscal watchdog group warned Thursday that Chicago Public Schools faces serious long-term problems -- led by pensions -- despite implementing more than 2,000 layoffs and 50 school closings last year.

The Civic Federation blasted the struggling school district in an 85-page report that said its new $6.6 billion budget will only worsen its long-term fiscal health. The federation criticized the district’s decision to drain nearly all of its reserves -- both unrestricted and restricted -- to cure a nearly $1 billion deficit.

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