Along with all its other difficulties, the Chicago Board of Education has a credibility problem.
A lot of people just don`t believe it when board members say they don`t have the money to give employees more than the 3.5 percent raise the board has offered.
The board has pleaded poverty every time there has been a strike. And then, after the strike has gone on for a while, it has come up with the money for raises by reducing other, nonsalary items in its budget.
Last year the board maintained over months of negotiations that it had no money for raises and also needed to cut benefits. After a two-week strike the board managed to grant 4.5 percent raises, without any of the threatened cuts in benefits.
Manford Byrd Jr., the new school superintendent, wants the public to think that this year is different.
But Gov. James Thompson expressed a common view Tuesday when he told a radio reporter, ”I think the board has got more money than they said originally.”
Byrd immediately challenged Thompson`s statement.
”We certainly have been put in a box in this matter,” Byrd said, referring to the board`s past behavior. ”Unless he can point out where the money is, it`s a terrible mistake. I believe the public is being misled.”
Byrd and the board insist that they are being candid about what they can afford in the way of raises, and they have laid out their numbers on the bargaining table.
Here are the numbers:
The board has a balanced budget of $1.7 billion for this school year.
This year the board has $87.4 million more in revenues than it had last year. The money comes primarily from additional unrestricted state education aid and increased local property tax revenue.
The board plans to spend the $87.4 million as follows:
— $56.1 million must go to eliminate a deficit projected for the year. It is against state law for the board to have a deficit. A portion of the projected deficit was created when the board ended last year`s strike by granting those 4.5 percent raises to employees. The legislature rescued the board from a serious money problem when it increased the amount of state aid. — $7.9 million for program improvements including more counselors, security aides, assistant principals and specialists in reading, mathematics and science. The $7.9 million also increases the work year of principals from 11 1/2 to 12 months, thereby increasing their pay.
— $1.2 million for increasing the school repair fund. Many schools are in poor physical condition.
— $1.1 million to reorganize high school and elementary school district offices. Byrd strongly supports this, along with the $7.9 million for program improvements and the $1.2 million addition to the repair fund.
— $21.1 million for pay raises.
School officials stress that they did not try to hide the fact that they had $21.1 million available for salary-bargaining purposes.
But the idea persists that they are ”hiding” additional money. Each 1 percent in pay increase costs the board $8.3 million. The originally allocated $21.1 million would provide a raise of about 2.5 percent.
The board now is offering a 3.5 percent raise that would cost $29 million.
Question: Where will the board get the additional $7.9 million needed to pay for a 3.5 percent raise?
Answer: The board will delay filling job vacancies to provide $5 million and trim funds for emergency school repairs, summer school for special edcucation youngsters and the high school renaissance program to provide the rest.
But the striking unions, including the Chicago Teachers Union, believe there is plenty more that could be trimmed to finance raises.
The teachers union late Monday lowered its pay raise demand from 9 percent to 8 percent. Such a raise would cost about $66.5 million.
In addition to the $87.4 million in new funds, the school board also stands to get an additional $30 million in ”educational reform” money later in the school year.
School officials point out that the board so far has not received a penny of this. When the money arrives, it must be spent for specific programs and cannot be used to increase teachers` pay.
The education reform legislation calls for such programs as full-day kindergarten classes, reading specialists and efforts to discourage high school students from dropping out.
The board will come under increasing pressure to settle. But if it gives in by granting a raise of more than 3.5 percent, its credibility problem will grow worse. If it refuses to budge, it could face a long strike by unions convinced that ”the money is there someplace.”
Jacqueline Vaughn, president of the teachers union, already has used this argument against the board. Reviewing last year`s strike, she pointed out that a year ago, the board said it couldn`t grant pay raises or continue to pay all of its employees` medical insurance premiums.
She said that ”miraculously” the board found the money to do both without firing anyone or eliminating education programs. ”We want them to create another `miracle` this year,” she said.
The board financed last year`s strike settlement by cutting $5 million from school maintenance, $3.5 million from central office costs, $1.5 million from busing costs, $1 million from special education, $2.7 million by leaving vacant jobs unfilled and $400,000 by dropping plans to buy more computers.
It also faced a new deficit for the 1985-86 school year until it was bailed out by the legislature last spring.
