Rauner: City Hall 'Looking To Blame Others' For CPS Woes
CHICAGO (CBS) -- Gov. Bruce Rauner rejected suggestions he's trying to sabotage the Chicago Public Schools' attempt to sell bonds to keep the system solvent, by repeatedly pushing for a state takeover of the district.
Some in the Emanuel administration believe the governor was trying to scare investors away from what was an $875 million bond deal for CPS.
A source told Crain's Chicago Business the governor knew CPS Chief Executive Officer Forrest Claypool was in New York last month trying to sell bonds when Rauner announced plans to allow the state to take control of CPS, and allow the district to declare bankruptcy.
That bond deal has since been delayed, but Rauner scoffed at the notion he tried to kill it.
"That's ridiculous. I believe that's City Hall flailing, and floundering, and failing, and looking to blame others for it. The numbers don't lie. CPS has been a financial disaster for years. The balance sheet is stunningly bad, and now they're looking to borrow more money to cover operations," he said.
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The governor said he's serious about wanting control of a school system he claims has failed.
On Tuesday, Rauner said he had directed the Illinois State Board of Education to prepare for a possible state takeover of CPS, and to start looking for an interim CEO of the Chicago Public Schools. The governor said the Chicago Teachers Union's decision to reject a four-year contract offer from CPS should serve as a wakeup call that CTU calls the shots at CPS, and he said if Mayor Rahm Emanuel can't get a deal done with the union, the state can if it takes over the district.
"Bankruptcy, along with a proper negotiation process, with a leader who will stand up and fight for taxpayers, will result in both the schools staying open, no layoffs – I don't think that we should have to lay off a teacher if this is structured properly. We can protect our children and their education, and still protect taxpayers," he said.
Rauner said he's looking for a Chicagoan to run CPS if lawmakers give him authority to take over the school system. The governor would need the Illinois General Assembly to approve a change in state law to do so, and both House Speaker Michael Madigan and Senate President John Cullerton have said that won't happen, but Rauner has said he thinks some Democrats from outside would vote to give him that power.
