Chicago Teacher Union junk bond Math: Borrow $300M, payback $700M
Chicago can’t afford anything close to that. Rather than disappoint his union buddies, Mayor Johnson wants the school district to take out a $300 million loan to cover higher teacher salaries and pension costs next year. CPS has a junk credit rating, so Mr. Johnson’s loan would end up costing the school district around $700 million.
More.
“Martinez has argued that such demands could bankrupt the (Chicago k-12) system”