Bond-rating agency downgrades CPS debt - Chicago TribuneA leading bond-rating agency has downgraded the Chicago Board of Education's debt in the wake of the settlement of the Chicago Teacher's Union's recent strike.
Moody's Investor Service had already downgraded the Chicago Public Schools' bond rating outlook to "negative" from stable in July. On Thursday, the rating agency cited its "view that the district will be hard-pressed to make the budget adjustments necessary to close an estimated $1 billion budget gap for fiscal 2014," in downgrading $6.4 billion in outstanding bond debt.
A ratings downgrade increases the cost of borrowing for a government agency.
The schools' downgrade to an A2 rating "reflects a weakened financial profile" born of depletion of reserves, a coming jump in pension payments after three years in which state law was changed to reduce the payments temporarily, slow payment of state money--and the recent strike, Moody's said in a release.
"If progress is not made toward improving the financial condition and liquidity of district operating funds, or if challenges arise in making the required pension contributions, the district's general obligation credit quality will be impaired," according to the release.
Strikes by other unions, more delays in state funding or "unmanageable" increases in pension costs could result in further ratings downgrades, Moody's warned.
illinois, led by cook county, is fast becoming the next california which is the next greece
moodys downgraded the state in january
Moody's Downgrades Illinois Credit Rating To Worst In Nation | Progress Illinois
so speaker madigan, on behalf of his bosses, killed pension reform---then deposited TWO hundred thousand dollar checks from the slavemasters at the seiu
Madigan reports $100,000 more from union with members opposed to pension reform - Sun-Times
governor quinn raised income taxes 67% in 2011
Illinois Lawmakers Approve 66% Tax Hike « CBS Chicago
mayor rahm won his highly anticipated carrot-and-stick wellness program---participate or pay
Shape Up or Pay Up: Emanuel | NBC Chicago
one of the first clinics set up by the meddling mayor and his know-it-all nannies was in a garbage truck garage
City Workers Appalled At Wellness Clinic Set Up In Garbage Truck Garage | Chicago Chronicle
he doesn't like chicken sandwiches
Emanuel goes after Chick-fil-A - Sun-Times
but he loves calypso louis, jew hater
Rahm welcomes help from Farrakahn, ignores anti-Semitic remarks - Sun-Times
cps is submerged under a "wave of violence" which sees several chicago public school kids killing several chicago public school kids each month
Rahm Emanuel Mourns 260 Chicago Children Killed By Violence - HuffPo
but the out-of-control gang violence goes back well before rahm the ram
AFP: Crime wave leaves dozens dead in Chicago
which only makes barack obama's promotion of crony arne duncan from ceo of cps to cabinet level ed secty all the more inexplicable and bizarre
so obama is pushing as his top priority (he led his opening statement in the doleful debate with the call) the increased investment in education
which to barack obama only means greater investment in teachers unions
last tuesday: Arne Duncan: 'Everybody won' in Chicago teacher strike | The Daily Caller
not rahm the ram who got his horns twisted off by the kindergarten, art and pe teachers
not the kids who can't even get to and from class safely
not the taxpayers, ask moodys
obama's cabinet's view of "everyone" adds up to an awful lot less than 47%
the windy city, city of big shoulders, has been satisfied with about as much one party rule as we're gonna see this side of leningrad, 1917
its citizens are responsible for the consequences
jesse jackson, jr, announced he's running in november to keep his seat
say hi to him---if you see him