Chicago K-12 Tax, Spending & Pension Practices

Nader Issa:

First revealed in Lightfoot’s budget proposal last fall for the current year, this year’s $175 million payment from CPS to the city was approved by the Board of Education at its monthly meeting Wednesday — but was the subject of intense scrutiny by board members who criticized City Hall.

The board passed with a 3-2 vote an amendment to the district’s agreement with the city that greatly increases CPS’ obligation from $100 million last year and $60 million in 2020 as payments to the underfunded pension ramp up — with additional significant increases expected over the next few years.

The payments in question cover the benefits of non-teaching CPS staff — who make up less than half of the district’s 40,000 employees — in the Municipal Employees’ Annuity and Benefit Fund. Those include cafeteria workers, bus aides, special education classroom assistants and other support staff. Teachers have a separate pension fund. The MEABF also covers elected officials, the Chicago Housing Authority and Public Building Commission, among others.

As of the end of 2020, about 56% of active MEABF participants — 17,469 of 31,327 — were CPS employees, district officials said Wednesday. Of the $266 million pricetag for those CPS workers’ benefits, $175 million is being passed on to the district.