Chicago Public Schools Supt. Ted Kimbrough agreed with critics Tuesday that the $315.8 million deficit he has projected for the district is too high, and he said his best estimate at the moment puts the true figure at about $250 million.
Addressing the audit and finance committee of the school board, Kimbrough continued to insist that deficit projections put forward by education reform groups, ranging from $179 million to $200 million, are too low.
He told the committee that new financial data suggest that the deficit will prove to be about $248.4 million, but he cautioned that unexpected developments before the end of the board`s fiscal year in August could raise or lower that estimate.
In explaining his latest projection, Kimbrough said the district should save or receive an additional $1.7 million from interest on investments, $2.5 million from spending freezes, $13.2 million from administrative cuts, and $50 million from city property assessments. The district also expects to save $6.3 million with changes in its busing policy and placing holds on lease renewals and new building purchases.
”These changes sound like they`re reasonable for us to look forward to,” Kimbrough said.
However, he has included all but the $1.7 million in interest earnings in earlier deficit statements, which could lend support to critics` contentions that Kimbrough has deliberately been overstating the deficit for some time.
Kimbrough received a show of support from board member Stephen Ballis for the ”conservative” deficit reductions he presented Tuesday.
”I`d much rather us be conservative in an approach for honesty in getting things done,” Ballis said.
Kimbrough labeled as ”somewhat misleading” the assertion by outside groups that the board will have a $30 million surplus at the end of this fiscal year, because of teaching positions that have not been filled and lower-than-expected energy expenditures.
Two reform groups, the City Wide Coalition for School Reform and Parents United for Responsible Education, said Tuesday that the actual shortfall is $179 million.
That estimate includes an intake of $45 million from property assessments, a $30 million surplus from this year`s budget, and $3 million from underestimated interest on investments. The groups also maintained that Kimbrough has overestimated expenses for the next school year by $58 million. To eliminate their projected shortfall, the groups recommend saving $40 million through administrative cuts, including $85,000 from Kimbrough`s pay;
$65 million from union contract renegotiations; $20 million from changes in the custodial pay schedule; and $15 million by eliminating some teaching positions.
And without additional tax revenue from the city or state, the groups recommend $28.2 million in local school cuts.
”We the parents and local school councils of this community have taken it upon ourselves to release our own proposed deficit elimination proposal because, quite frankly, the administration hasn`t,” said Ronald Sistrunk, executive director of the City Wide Coalition.
In the General Assembly, a group of legislators was scheduled to meet Wednesday morning to discuss the alternative deficit proposals, said Jeanne Crowley, spokeswoman for state Sen. Arthur Berman (D-Chicago).
”Sen. Berman is taking them seriously,” Crowley said. ”But it`s premature to dismiss Kimbrough`s estimates or their estimates.”
The groups` estimates may have no bearing on legislative deliberations, because the district`s deficit estimates have always been questionable, said Steve Brown, an aide to House Speaker Mike Madigan.
Meanwhile, various board members said they have reservations about transferring state Chapter I funds from the local school councils to the general education fund in order to balance the budget. A bill that allows the transfer passed the House Friday and is currently waiting for a Senate vote.
”It`s only a one-time fix,” said audit and finance committee chairman Grady Bailey Jr. ”I`m philosophically opposed to using that money.”
