Chicago Public Schools borrows $275M to fulfill pension duty
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Chicago Public Schools says it has taken out a $275 million short-term loan so it can meet its obligations with the teachers' pension fund by a June 30 deadline.
JPMorgan Chase & Co. on Monday purchased "grant anticipation notes" from CPS, the third-largest school district in the U.S., to be repaid with state education aid.
The district says the $275 million "creates sufficient cash" to pay into the Chicago Teachers' Pension Fund. Another $112 million for district operations will be borrowed separately.
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CPS finance chief Ron DeNard says Illinois school districts have suffered because Gov. Bruce Rauner's administration has failed to provide education funding in a timely manner.
In an emailed statement, Rauner's spokeswoman Eleni Demertzis blamed the district's need to borrow on "decades of mismanagement."