Thread by @StuLoren

1/ News today that CPS budget will remain steady at $9.4b in FY 2024. But more notable is that CPS will use its taxing authority to increase property taxes 5% in Chicago to help funding. At this rate, CPS and the city will just own all our houses soon…

cps.edu/about/finance/…

2/ In the private sector, when demand for your product or service declines 20% over a decade, you usually get some sort of restructuring that includes right-sizing costs. But in the public sector?…

3/ To be clear, I appreciate and respect teachers. My wife was once a teacher in CPS and I benefitted immensely from quality public education. But it’s fair to ask - as city tax payers - what we’re getting in return for this spending increase.

H/T @Wirepoints & @illinoispolicy

4/ While spending has surged, student outcomes have plummeted. And CTU’s insistence on stay-at-home learning, and subsequent strikes, set back students perhaps irreparably.

illinoispolicy.org/chicago-public…

5/ So what is all this money going to support? There’s surely some unsustainable fixed costs with enrollment down so much, but - no surprise from me… - about a quarter of the operating budget goes toward benefits and pensions.

illinoispolicy.org/chicago-public…

6/ If spending is not right-sized to adjust to the reality of lower enrollment, this funding gap is only going to get worse as the state is on track to have much lower contributions starting soon and federal Covid money runs out.

chicago.suntimes.com/education/2023…

7/ By far the most logical fix would be pension reform. But I don’t have high hopes given the constitutional barriers to doing so and a mayor who is very union friendly. Incentivizing growth would also help - as this would increase city residents, economic output and tax revenue.

8/ Any reform would require buy-in from the CTU, but something tells me that isn’t happening… I don’t know how much they will still love all this socialism stuff when they run out of residents to tax.

9/ Generally speaking, Chicago needs a much healthier balance between tax payer interests and public services. The only ways to get that are pension reform or shifting the policy stance to become far more pro business to attract more workers and residents.

10/ Last thing, it’s amusing that all the progressive and DSA types here who rail against the wealthy, businesses and “corporate greed” are silent about public sector greed. Could you imagine their outrage if businesses and landlords said we’re going to “raise prices to-the-max”