Chicago Public Schools In Financial Disaster: How can CPS make looming pension payment and payroll? That's the 'magic question'

The Chicago Sun-Times reports:

The Chicago Public Schools are staring down the barrel of impossible choices with its cash reserves depleted, the Springfield budget stalemate dragging on and three weeks to go before a $634 million teacher pension payment is due.

Although the pension payment was built into a school budget balanced by an accounting sleight of hand, CPS is now facing a liquidity crisis that would make the payment difficult to make.

When the CPS bond rating dropped to junk status, the district was forced to renegotiate $220 million in outstanding swap agreements and pay penalties and higher interest rates on a massive refinancing.

That made a cash crunch that was bad enough — with a $1.1 billion budget shortfall — infinitely worse.

“How they meet payroll and make the pension payment at the same time is the magic question. That’s what they’re trying to figure out,” said a mayoral confidant, who asked not to be named.

Isn't it long past time to think of shutting down public education in Chicago?