Ashford, Rehak challenge Huberman's lies about CPS budget, pension responsibilities
Substance:
The following is a letter we sent to Rob Huberman regarding his support for SB 2011, the legislation that is trying to undermine CPS obligations to the Chicago Teachers Pension Fund.
October 21, 2009
RE: SB 2011
An Open Letter to the Chicago Board of Education, CEO Ron Huberman, Active and Retired Chicago Teachers, and the Citizens of Chicago
Ladies and Gentlemen:
Whitney Young High School teacher Jay Rehak (above, at podium) looks on skeptically as Chief Executive Officer Rob Huberman lies to Rehak and the public about what the Board was doing to the teachers pension fund. When Rehak spoke and demanded that the Board not seek a "Pension Holiday," Huberman heatedly interrupted and went on about how the Board was not doing a pension holiday, implying that the inaccuracy was the result of people's ignorance. By that time, Huberman and Michael Scott, the Board's president, had changed the Board's strategy for avoiding its legal obligations under the law, and Huberman was orchestrating a lobbying effort on behalf of what became "SB 2011" — legislation now before the Illinois General Assembly in Springfield to allow the Board of get out from its pension obligations for ten cents on the dollar. While Huberman was technically accurate when he heatedly declared that the Board was no longer seeking what is called a "pension holiday" (which is had been lobbying for under Huberman's predecessor Arne Duncan and Scott's predecessor Rufus Williams), the technical distinction was not really a difference. Huberman and Scott were working to generate hysterical public opposition to the pension fund, ignore the Board's history of avoiding its pension obligations, and claim technicalities. Standing with Rehak above are CORE members (left to right) Kristine Mayle, Kenzo Shibata (partly hidden by Rehak), Carol Caref, and Norine Gutekanst. Substance caption and photo by George N. Schmidt. As vested members of the Chicago Teachers Pension Fund, we write to express our outrage at the Board of Education’s recent attempt to shirk its legal obligation to the thousands of retired and active teachers who have spent their lives in service to the children of Chicago.
Specifically, recently introduced Senate Bill 2011, legislation lobbied for and co-authored by the Board of Education, would reduce the Board of Education’s annual payment to the Chicago Teachers Pension Fund by 90 percent. Such a reduction (allowing the Board of Education to pay $30.1 million into the Pension Fund instead of $301 million it owes) would have disastrous consequences not only for present day retirees, but for every future retiree as well.
It is well established that the Board of Education has a legally mandated, contractually obligated responsibility to pay $301 million into the Chicago Teachers Pension Fund this fiscal year.
As we noted in our remarks during the July 2009 Board of Education meeting, this $301 million payment has been long anticipated by both participants and payee, and is the direct result of 10 years of underfunding of the Pension by the Board of Education in the years 1995-2005 [emphasis added].
As such, there should be no confusion: the $301 million the Board of Education must pay is a debt long owed, and not a benefit recently conferred, and, as a consequence, this payment cannot be unilaterally reduced by the payee.
Chicago Schools Chief Executive Officer (CEO) Ron Huberman (above left) interrupted high school teacher Jay Rehak to insist during the July 22, 2009, Board of Education meeting that the Board was not seeking what Rehak had referred to as a "pension holiday." Technically, as in so many things he said, Huberman was accurate. The Board and Huberman had changed their legislative strategy from the one pursued by former CEO Arne Duncan. Instead of a "pension holiday" Huberman was preparing legislation that would allow the Board to pay its obligations to the Chicago Teachers Pension Fund (CTPF) at ten cents on the dollar. Huberman has been publicly claiming two lies during the ten months since he was appointed by Mayor Richard M. Daley to succeed Arne Duncan, who is now U.S. Secretary of Education. The first lie, which he has never allowed himself to be questioned in detail about, is that the Board is facing a $475 million budget 'deficit.' The second lie is that the Board's forthcoming pension obligations are unexpected and will take dollars out from the classrooms where the children are. Despite the carefully crafted and tested narrative being presented to the public by Huberman, Board president Michael Scott, and Chicago's corporate media, a growing number of people across the city, often under the leadership of CORE, have refused to believe the new versions of reality. Substance caption and photo by George N. Schmidt.As we noted directly to the Board of Education in July 2009, any “Pension Holiday” or “Virtual Pension Holiday” proposed by the BOE as a means to save money, ultimately involves a theft of funds from those who have already earned that money. Our position remains steadfast; our Pension Benefits are not negotiable. We urge all who believe in equity and fairness to join us in opposition to Senate Bill 2011.
Jay Rehak
Whitney Young High School
[Candidate for pension trustee]
Lois Ashford,
O'Keefe Elementary School
[Candidate for pension trustee]
Comments:
By: Margaret Wilson
Retired teacher
Thank you for your open letter. I sent him a letter too protesting the talk of a pension holiday. We worked hard for our money and so are the current active teachers. I remember the strike that lead to CPS paying a larger share of the pension. It was negotiated instead of a larger payraise which CPS said they couldn't afford. We are going backward in too many directions and don't need to go backward in this area too!!!!!!!!
By: Jim Vail
Give 'm Hell Jay & Lois!
Way to go to fight for the teachers pensions!
Garth and I distributed maybe more than 250 flyers outside Saucedo School after a professional development. One teacher asked me square in the eye - "do you know these people and vouch they will do a good job?"
I answered, "You Bet!"