CHICAGO (AP) — Chicago Public Schools has turned to JPMorgan Chase for a $275 million loan to keep operating through June and make a contribution to teacher pensions.
JP Morgan purchased “grant anticipation notes,” a short-term loan meant to be repaid with state education aid.
Chicago schools have plans to borrow close to $400 million. In addition to the JPMorgan loan, the school district officials say they plan to pursue another $112 million loan.
The district said the $275 million “creates sufficient cash” for CPS to meet its obligations to the Chicago Teachers’ Pension Fund.
CPS finance chief Ron DeNard says Illinois school districts have suffered under the failure of the administration of Gov. Bruce Rauner’s to provide education funding in a timely manner.
A Rauner spokesman placed the blame for Chicago school’s need to borrow on mismanagement.
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