Rauner suggest bankruptcy for CPS

Rauner suggest bankruptcy for CPS

Rauner says he's not intimidated by the union leaders, CPS should file bankruptcy
Rauner says he’s not intimidated by the union leaders, CPS should file bankruptcy

       Last week Rauner sounded like a true raider when he said that the Chicago Public Schools may have to file Bankruptcy  as if that’s a viable solution. See that’s what happens when you put a corporate man in a government position. The thinking is eschewed.

Rauner invited members of the media to Springfield for one-on-one interviews. He wanted to talk about, among other things, the enormous challenge facing Chicago’s budget and what happens if the city’s pension liabilities become too much to bear.

CBS 2’s Rob Johnson pressed Rauner on whether bankruptcy is a viable option, if public pension costs cannot be tamed through legislation. Rauner’s proposals include making the option legal for Illinois communities.

“Many other states have allowed local governments to decide whether they need to declare bankruptcy,” Rauner tells Johnson. “Bankruptcy law exists for a reason. It’s allowed in business so that businesses can get back on their feet and prosper again by restructuring their debts.”

Mayor Rahm Emanuel’s office issued a statement that said balancing the state budget on the backs of the local governments is itself a “bankrupt” idea. Rauner has proposed sweeping cuts in state assistance that have angered local officials.

Rauner reiterated his sentiment, “The state has a crisis, the city has a crisis. I’m concerned that [CPS] is going to have to go bankrupt,” he said during a moderated discussion at a Chicago Public Education Fund luncheon. “Bankruptcy code exists to help the organization get out of financial trouble. There’s a reason for the bankruptcy code.”

He also pointed out that that unions are partly to blame for why municipalities and school districts in Illinois can’t file for bankruptcy in order to renegotiate debt.

“Insiders in our system currently have made bankruptcy in government units illegal because some people never want to restructure contracts – contracts brought into place through insider deals,” said Rauner, who also advocated for right-to-work zones.

In reality Rauner seems to miss the point. As a municipal organ it is his office’ responsibility  to balance the budget. In a tinge of financial crisis as we are still in, it calls for creative thinking  rather than the Ivy League MBA business code. It is not applicable here. Governments don’t aim for profit. He’s got to fins a way to benefit the state and it’s residents or and bankruptcy is  not the answer or is it?

On the heels of the CPS Scandal Rauner distanced himself but  says he has little faith in the Chicago Public Schools. and reiterated that  bankruptcy might be the best option for CPS.

The governor’s comments come as CPS is under federal investigation over a $20.5 million no-bid contract.

“I’ve had significant concerns and doubts about Chicago Public Schools for a while,” Rauner said. “This investigation is very sad, I hope there’s been no wrong-doing, but Chicago Public Schools has been a source of patronage, cronyism, dealings, massive bureaucracy. It hasn’t really served the families and the parents of the children in a very long time.”

Well Rauner and  I agree on one thing and that is, “I hope that there’s been no wrong doing.”

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