Fee Hikes and New Spending in 2018 Budget

Progressive Caucus demands Claypool testify before City Council after investigation finds special ed scandal

CHICAGO (October 19, 2017)--The City Council Progressive Reform Caucus on Thursday demanded Chicago Public Schools CEO Forrest Claypool testify before the City Council Education Committee after a WBEZ investigative report found CPS leadership had implemented secret plans to reduce programs and support for special needs students.

"The report revealed what many CPS parents have long suspected--that likely in violation of state and federal law, CPS redirected funds intended for students with special needs, and significantly reduced the programs and specialized supportive services for special education," said Progressive Caucus Chair Ald. Scott Waguespack (32). "These disturbing revelations deepen our already grave concerns about Mr. Claypool's leadership."

"Given that the last CPS CEO is sitting in federal prison right now, one would think Mr. Claypool would tread more lightly when it comes to misusing federal dollars on high paid 'consultants' instead of their intended purpose," said Ald. Susan Sadlowski Garza (10), a former CPS counselor and leader in the Chicago Teachers Union. "This is nothing more than a kickback scheme. We demand answers."

"Parents, teachers and principals have been protesting this pattern of willful neglect," said Ald. Roderick Sawyer (6), who is also chair of the Black Caucus. "It is clear that this was a stealth scheme to slash the number of students classified as eligible for specialized services."

The Progressive Caucus pointed to the scandal as further evidence of the need for an elected, representative school board in Chicago, instead of the current mayoral-appointed system.

"We have a moral and legal imperative to end the mistreatment and cheating of our special needs students," said Ald. Ricardo Muñoz. "Forrest Claypool must come before the City Council and answer for these violations."

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WBEZ Investigation: CPS Secretly Overhauled Special Education At Students Expense

The City of Chicago has created a new financial body called an SPE "Special Purpose Entity" housed in City Hall. The initial purpose of the entity is to refinance about $3 Billion in Chicago G.O. debt secured by the city's sales tax revenue (approx. $660 million/yr.). There is no limit to what can be secured in the future. The lack of a quality independent analysis, the cost of setup and management fees that did not match up to purported savings, the highly likely negative effect on non-securitized debt, the lack of guaranteed fiscal oversight required fiscal discipline, and varied concerns from many in the finance sector prompted a handful of us to vote against the creation of this new body. While it was favorably compared to what NYC, Philadelphia, and DC have done, none of them were in the same fiscal situation Chicago finds itself in, and they had required fiscal discipline involving their state and federal governments. Summing it up: this SPE does NOT eliminate our debt as some aldermen stated; it rather works similar to a scoop and toss, and while it sounds good in practice (and may turn out to be good, or a wash), the devil is in the details. Relevant details will probably be made clear once the $3 billion in debt goes to market over the next year. There will be a quick infusion of money made available in this deal for the upcoming 2018 city budget but much of the costs will bear out over the next 30+ years.

Because the new SPE body didn't fall into the category of an asset transaction as was intended by a Progressive Caucus proposed ordinance passed last year, we are working to amend the ordinance after the fact. Per the ordinance: "Debt Transaction" means an issuance by the City, acting in a non-conduit capacity, of any bond, note or other debt instrument, with a maturity of longer than 271 days, that does not bear interest at a fixed rate for its entire term. The proposed language includes "Debt Transaction" shall also mean any creation or expansion of a non-profit corporation for the limited purpose of issuing, for the benefit of the City, bonds, notes, certificates, contract rights, and other obligations.

The final vote was a divided roll call vote of 43 to 5.


Emanuel's debt plan gets City Council nod despite some protests

Chicago faces skeptics as it advances securitization plans  -  Fidelity

 

Friends of Chicago Animal Care Control's Big Night
Celebrity Chefs Event

Chicago Cultural Center, Preston Bradley Hall

78 E. Washington

Wednesday, October 25th from 6 pm to 9 pm

Enjoy tastings from new chefs and your old favorites with beer, wine and cocktails, silent and live auctions, great entertainment, and more! To find out more, visit  fcacc.org .

There is NOT an official day that the City designates for Trick or Treating, however many people do it on Halloween Night after schools let out, until roughly 8 p.m. Check back here in next week's newsletter for Halloween safety tips! 

Roscoe Village Neighbors Halloween Parade and Party

Oakley and Roscoe - Parade kick off
Date:  Sunday, October 22nd
Time:  2 PM - 4 PM

Trick or Treat with RANCH and Armitage Ave. Businesses

October 29th

Halloween Costume Contest for Families ( AND PETS!!)    Bridgeview Bank, 1907 N. Halsted