The Chicago Public Schools would rely mainly on one-time measures to cover the $103 million, first-year cost of a new teachers’ contract, under a plan the school system released on Friday, Reuters reports. The plan calls for saving $42 million through a restructuring of about $100 million of outstanding debt later this year or early next year and tapping $13 million in the current budget set aside for interest payments for bonds the district sold in August, according to a spokeswoman for the district. The school system would also raise $15 million through property sales.
“At times of financial challenges, it makes sense to use strategies like capitalizing interest or restructuring debt, particularly when interest rates are low, to bridge short-term budget pressures,” said spokeswoman Robyn Ziegler.
Recurring measures in the plan include $12 million in administrative savings such as delaying or not filling vacant non-teaching positions and $21 million in reduced operational costs…