Education Funding News in Brief

State Takeover Proposed For Chicago District

By Daarel Burnette II — January 26, 2016 1 min read
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With the backing of Illinois Gov. Bruce Rauner, two Republican legislators introduced a bill last week that would allow the state to take over the Chicago school district.

Under the proposal, the state would establish an independent authority to wrest control of the district from the mayor-appointed superintendent and its school board. It would also allow the district to declare bankruptcy and establish that the state would not be liable for its debt.

The district’s credit rating was downgraded to junk status last year after a court rejected a state plan to reduce pension costs. City administrators estimate the district’s debt to stand at around $1 billion, and they have fought with teachers over wages and layoffs.

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A version of this article appeared in the January 27, 2016 edition of Education Week as State Takeover Proposed For Chicago District


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