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.
“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...