| Let us take a closer look at the public schools in | | | | the twelfth grade to save money. If done, that |
| Chicago. The budget for this fiscal year is $5.328 | | | | would save $60M. All state residents do not agree. |
| billion. The breakdown of revenue sources is: | | | | Cincinnati projects a $33M deficit by the year 2012. |
| 1.) 18% from federal Title 1 funds, | | | | Toledo, Ohio projects over $30M in the upcoming |
| 2.) 36% from state funding which is based on a | | | | year. Ann Arbor, Michigan projected a deficit of $20M |
| formula involving students, household income levels | | | | for next year. Detroit has dire problems. After seven |
| and special needs, | | | | years of overspending, it was a candidate for |
| 3.) 37% from property taxes, | | | | bankruptcy. It has lost almost half of its students |
| 4.) 3% from personal property replacement taxes, | | | | over that time period. But for this year, it has |
| which is corporate tax on business, | | | | projected a slight surplus and intends to come out of |
| 5.) and 3% from other taxes which come from | | | | deficit spending in three years. Last school year the |
| sources such as school lunches. | | | | deficit was $305.8M. St. Paul, Minnesota projects a |
| Almost half of school funding is provided by local | | | | $25M deficit for this year. Los Angeles, California |
| sources or 43%. The state's contribution is 36%. | | | | projects a $640M deficit for this fiscal year. Chicago |
| Illinois ranks 49th in its support to schools. | | | | topped Los Angeles with a $900M deficit. Chicago is |
| Now let us look at how it is spent. 71% of the | | | | the third largest school district in the nation. Even |
| $5.328B goes directly to schools, 4.4% to central | | | | though other school districts are having budget |
| office and 25% is for citywide purposes or | | | | problems, Chicago has record overspending. If Detroit |
| discretionary funds. That last category sounds | | | | is successful this fiscal year, it will start the process |
| nebulous. What are citywide purposes? So, more | | | | of bringing itself out of fiscal distress. Chicago needs |
| than $1B is discretionary spending. Capital expenses | | | | to do the same. |
| are generated by issuing bonds, so that is not a part | | | | Unfortunately, all of these facts and figures can be |
| of the $5.328B. CPS has funded more than $5B in | | | | boring. But education is important, important enough |
| building improvements since 1995 and future need is | | | | to warrant the examination. |
| great. | | | | Everything examined relative to education seems to |
| Maybe now is the time to mention the pension fund. | | | | hone in on ancillary topics, like these budget shortfalls. |
| Pension costs have risen dramatically since 2005 | | | | Someone in charge should be making a balanced |
| when it $200M. It is now at $400M. Apparently a | | | | budget. Why isn't more attention given to the actual |
| great number of staff has retired since 2005. If that | | | | education of our children? Shouldn't we talk about |
| number continues to grow, pension costs will rise | | | | how to improve the reading skills of our children? |
| accordingly. Hopefully that is not the case. There has | | | | Shouldn't we focus more on basic math skills? Maybe |
| been talk about pension underfunding. To remedy the | | | | a discussion on making recess mandatory is needed. |
| situation, the solution is teetering on having a two-tier | | | | Many professionals come into substitute teaching to |
| system for employees. Anyone coming into the | | | | give back to their community. That may not be so |
| system would receive a pension plan not at the | | | | easy to do. The behavior of the students can be |
| same level as current employees. | | | | truly unbelievable at times. Teaching can be a real |
| There are other municipalities in financial trouble due | | | | challenge. |
| to overspending. A Utah legislator wants to eliminate | | | | |