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New Contract Earns Chicago Schools 2nd Credit Downgrade – In One Quarter

ThasicAlambra Wrote: Sep 29, 2012 7:40 PM
It never ceases to amaze me how short sighted these people are. The city will default. It is inevitable. Then what will these unions do? A court will decide who gets paid and how much. Pensions get trashed, wages tumble, buildings fall apart and the kids get no education, not that they get much education now, but still. heck Rahm may as well offer these morons a triple increase in salary and twenty million bucks each as a pension because none of it will happen. The city is BROKE. Without funds. No one left to tax. Does no one understand that?

Sound financial management clearly wasn’t a concern to any party involved in the recent contract negotiations in Chicago Public Schools.

They were warned that new labor expenses might result in a credit downgrade for the financially-strapped school district, and they chose to ignore it.

Now it has comes to pass. The credit rating agency Moody’s has downgraded the school district for the second time in one quarter.

Moody’s wrote:

“The negative outlook reflects the school district's budgeted depletion of reserves to fund ongoing operations in fiscal 2013; the moderate additional unbudgeted salary costs of labor...