Rauner Blasts CPS Borrowing Plan; Says Emanuel 'Forestalling The Inevitable'
CHICAGO (CBS) -- Gov. Bruce Rauner had more harsh criticism for the Chicago Public Schools on Thursday, a day after the district borrowed $725 million at very high interest rates.
The governor said that's the same kind of financial mismanagement the district has been operating under for years.
"We're on a bad trajectory for CPS, and if we don't change the structure, there are really two long-term options. One is massive ongoing tax hikes on the people of Chicago that are unaffordable; that will crush our homeowners and our small business owners, and force people out of the city. Or bankruptcy," he said. "Everything else is delaying. Everything else is kicking the can. Right now, the mayor is kicking the can, and delaying, and he's forestalling the inevitable."
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Last month, Rauner proposed lawmakers approve legislation that would allow CPS to declare bankruptcy, so it could restructure its debt and renegotiate collective bargaining agreements with the Chicago Teachers Union.
Rauner said Mayor Rahm Emanuel needs to engage in real discussions about structurally reforming the finances of the city's school system.
"We've had financial mismanagement of our Chicago Public Schools for years and years, and it's tragic that the mayor is choosing to borrow more to cover operations. That's kicking the can. It's going to cost taxpayers more in the long run," he said.
In addition to pushing for CPS to be allowed to declare bankruptcy, Rauner has been pushing for lawmakers to give him the power to force a state takeover of the district, so he could install a new CEO, and oversee contract negotiations with CTU. Democratic leaders have said that won't happen, and Emanuel has repeatedly questioned why Rauner should be entrusted with taking over the schools when he can't get a state budget passed.
