Aldermanic Update May 19, 2017CPS Crisis Driven by State’s Discriminatory Funding Low and unequal State funding undermines the education of CPS students * CPS students are 90% minority ° In FY17, CPS receives just $0.78 for every $1.00 other ‘ois districts receive ° By FY22, CPS is expected to State Funding Per Pupil” FY 2012 to Projected ¥ 2022 receive just $0.67 for every $1.00 ee a ngulEdueston and Pensions other Illinois districts receive* 70% * CPS is the only school district that om mers funds its own pension payment $s.000 mal oine * The disparate impact on African eee Americans and Latinos will only $5,000 become worse 34500 -T is fueled by the State's $4000 repeated failure to meet its statutory sasao promise to fund CPS teacher pensions and Governor Rauner's veto of partial pension equityFunding Shortfalls Originate at the State Level Line Item General State Aid Equalization Formula Claim Low-Income Claim Adjustments Shortfall Grant Mandated Categoricals/ Other Grants. Total Without Pension Contributions TRS Pension Contributions CTPF Contributions Total With Pension Contributions FY16 Enrollment Average State Funding Per Student CPS Shortfall per pupil (Compared to Other IL Districts) Total CPS Shortfall (Compared to Other IL Districts) Adjustments TRS FY17 contribution amount Illinois Districts Excluding CPS Statewide Total Ps 1,740,954,386 704,375,961 1,036,578,425 26,708,501 16,300,000 10,408,501 313,356,891 195,557,342 117,799,549 2,310,903,700 649,690,991, 1,661,212, 709 7,382,300,309 1,752,076,963 5,630,223,346 1,764, 262,963 9,616,806,697 11,381,069,660 2,041,779 392,051 1,649,728 $ 1,329 | $ 521,131,164 Mandated Categoricals/Other grants adjusted to reflect enacted amounts (instead of estimated) Number of students reflects FY16 enrollment figures for both CPS and statewideState Actions Responsible for CPS Cash Flow Problems Rauner veto and delays in State funding created cash flow problems for CPS ° In total, the Governor’s negative actions and funding delays have cost CPS $1.1 billion in cash since 2016. * $467 million of late block grants + $400 million from reduced bond proceeds after his actions and criticism of CPS finances * $215 million of vetoed pension funding * The delay in $467 million in State education block grants and the Governor’s veto of $215 million in pension funding created a serious cash flow problem for 2017 * Without this money, CPS does not have the cash on hand to fund its operations * Without a funding solution, CPS will not be able to meet payroll, pay vendors, and make pension paymentsFY07 - FY17 State School Funding Receipts The State has consistently delayed delivery of school funding CPS Delays TRS ese Cu RECS Cot Ee uci ECoG CCT arte vane ENUOTS Creole irs) (0) End($m) ($M) FYO7 $596.5 $596.5 $0 FY08 653.7 6537 0.0 FY09 705.6 705.6 0.0 FY10 578.0 344.2 233.8 FYI x 646.2 5176.2 70.0 aa FY12 635.4 619.0 164 9 day delays FY13 618.9 599.5 19.4 FYt4 6238 606.5 73 | FY15, 642.1 642.1 0.0 Extended delays *Numbers as provided by CPSFY17 Cash Impact* FY17 Net Impact FY17 Original Restated ifferenee © * The 2017 School Year will NOT Operating receipts end early under any Federal revenue $ 789.0 | $ 711 (67.9) . Property taxes 22054 | 22954 : circumstances TIE 87.5 723 (15.2) Other local revenue State revenues General State Aid State Pension Contribution FY16 State Grants FY17 State Grants 201 * The largest source of the Board's cash problem is its June 30 pension payment * School will end as scheduled on June 21, and the Board still plans to make its June 30 pension payment on time as Total State Revenues 1,430.8 (680.9) Total operating receipts 5,496.1 4,752.2 (743.9) well Total operating expenditures (5,454.9)| __ (5,302.0) 152.9 Net operating receipts 41.2 (s49.8) 6940) > $389M Short-Term Borrowing Net Financing cash flows 73.4 78.4 : . i Net capital cash flows 138 25.8 24.0 against Delayed State Grants Netimpact $ als (445.6) $ (567.0) * Secured by State block grants GAN Financing = 389.0 Net Impact withGAN Financing $__121.4|$ (56.6) pe 6 .suoisuad $q9 JO} UOII|IW 00Z$ [euOHIPpe ue paynqujuoo AY PINOM }! ‘SIOUI|I| U! SJOLSIP JAY}O [2 Payee.) }! O!] SdO Payeaj ayejg ou} obeoyd 1 djOXI S}OUJSIp |ooyds sioull|| 7Ty Ul S}soo uoIsued shed ayeIS ayL Se $19YOLS} SO JO} $09 UOIsued Jenodey (Z UOIIIL OOS$ |euoNIppe ue 9j2/9U96 pjnoo jane] Buipuny pazijenba ue 0} ple ejnwuo} Ul asealoUl UY se KAUOW BINWOY 8}2}S JO %Q SANIadaI AJUO Sdd J94 ‘a}e}S Oy} UI SJUapNys Jo %OZ JaAO dn ayew AjjuauND AyD ayy UI SJUapN}S = Ayo ay} 0} JUeIB ejnuuoy eseaiou; (| pleyBuiids wol4 pepaan soueysissy