Chicago Losing School Age Children Raises Property Taxes

The Chicago Sun-Times reports:

Civic Federation President Laurence Msall warned that the budget, up for a vote later this month, could set the stage for contentious talks next year, when a four-year teacher contract, with 4 percent annual raises, expires.

The new budget is up 5 percent, even though enrollment is expected to decline by 8,000 kids, Msall said. Salaries and benefits alone rose 14.3 percent, fueled in part by a $55 million jump in teacher pension costs. Next year, the pension tab is expected to swell by another $50 million.

"There is no way they can allow the operational costs to continue to outstrip the available revenue at a time when they are seeing declining enrollment,'' Msall said. "They have to have effective negotiations that reduce their operating costs, including benefits and salaries.''

To fill a $328 million deficit -- a record under Daley -- CPS cut $25 million from central office, grabbed $75 million from its reserve fund and raised property taxes to the maximum for the 10th time in 12 years of Daley budgets.

That's government for you: decreasing customer base and they want to raise costs! It appears families aren't moving back to Chicago,no matter what the urban lovers claim.