Potter challenges CPS for slanting budget presentation against teachers, ignoring Mayor Daley's manipulation of TIFs, other funds... CPS budget chief promises information to Jackson Potter during final budget hearing
CORE co-chairman Jackson Potter pressed Christine Herzog, CPS budget director, for some very important answers during Potter's brief remarks at the August 19, 2009 budget hearings at Chicago's Black Magnet Elementary School. As of the end of the work week on Friday, August 21, Herzog still had not responded to Potter's questions. During the week, Ms. Herzog had also promised specific answers to questions asked by other witnesses as well. The following is the exchange, transcribed from a video done by this reporter for Labor Beat during the August 19 hearing.
Jackson Potter:
Hi, my name is Jackson Potter. I'm a teacher at Social Justice High School and a member of the Caucus of Rank and File Educators (CORE). I was watching your slide show and I saw a number of causes for the deficit: One, we can't go into the reserves, we've done that too much;
Two, there are state delays in paying back what they owe us;
Three, there is lack of commitment by the state to public education; and Four, there is teacher pension and health care benefit costs.
So I wanted to share some information because I think that even despite your claim that you are not trying to single out teacher benefits, there are some other revenue sources that you didn't mention that makes me suspicious that you are maligning some of these services or benefits that teachers rely on. So I wanted to share this information with you.
According to Progress Illinois, in 2008, with over 150 TIF Districts, there was $1 billion in aggregate unspent funds. According Angela Caputo, of Progress Illinois, if those funds were redistributed into the neighborhoods, as it should have been, over 53 percent of those funds would have gone back into the schools. Now, I'm not a math teacher, but that is over $500 million that would have been sent back to our educational programs.
So, my question is why not point that out? Put a little pressure on the mayor to redistribute these funds. And, now I would like to know specifically how much has been redistributed? I know there are ways that CPS does reaccumlate some of that lost funding. So, maybe you can answer that question.
I would also like to ask about these bond agencies. You claim that the reserve is already at a level where you cannot withdraw any more funds from it. But, my understanding from this recent financial crisis is that much of the bond agencies ratings were inaccurate. We all know that municipal bonds are some of the safest investments, rather than high priced derivatives. Can't you work with these bond agencies, tell them that this is a good investment and they should give you a break on some of these caps that you claim exist?
One last question on the stimulus funds from the Feds. You claim there are some stipulations attached to those funds. Could you say what they are? And, why can't we have some public hearings on how we spend those Federal dollars?
CPS Budget Director Christine Herzog:
OK, I will start with the last question about stimulus dollars. It's a category we call Title ONE money. They are restricted to supplemental programs and cannot be used for regular instruction. But they can be used for; after school programs, professional development, early childhood education, ELL. And also the stimulus money can only be used in Title ONE schools, which a majority of our schools are.
Jackson Potter:
So, that covers all of the stimulus money?
Christine Herzog:
No, there is Competitive Stimulus money. We hope to get this in the future. But, we don't assume we'll get this. The grant applications haven't come out yet. The other one is IDEA, which is special education.
Jackson Potter:
Do you figure that competitive stimulus money into your projected deficit before ...?
Christine Herzog:
No it's built into that 383 number that includes some of the dollars that we hope to get from our application in the "Race to the Top". But we haven't built in the expenditures on that.
Christine Herzog- (continues)
One of your other questions was about TIFs. We don't have any dollar information on what we would have received from TIF funding. I know you cited an article or research organization. I know also the Civic Federation has something on this, but we don't have any detailed information on this. You are absolutely right, it is a city hall program, a city policy. We do talk to them about their programs. I hear what you are saying.
Christine Herzog-(continues)
What was your other question?
Jackson Potter:
But, can I respond. This has drastic repercussions on school funding. If you are taking the responsibility to look carefully at the state budgets why wouldn't you also look at the city budget and force the mayor do what's right for the children and teachers of the city. If we are going to malign teacher pensions, we better look at that pot of money, don't you think?
