Chicago Schools Planning 2 Percent Pay Raises, Big Dip Into Reserves

07/06/2012 02:50 pm ET
  • Chicago Sun-Times

Facing a $665 million deficit, Chicago school officials released a budget plan Friday for the coming year that relies on the school system’s most drastic raid on its reserve funds in 17 years and includes 2 percent raises for everyone from teachers to central office workers.

The $5.162 billion spending plan draws down a “rainy day” fund to zero, while raising property taxes for schools to the maximum $62 million allowed by law — costing the average homeowner $28.

It also drops a decades-old practice of layering on extra teacher pay hikes for experience and additional schooling.

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