How Bad Are CPS's Financial Troubles?

There was an intriguing and seemingly-knowledgeable comment left on the blog last week suggesting that there are bigger and more immediate troubles facing CPS than gangs and school closings: money.

In essence, the commenter was describing how CPS has a district-sized adjustable-rate mortage (ARM) -- the kind that starts out with a low rate and then balloons wildly at some point down the line -- that it is struggling to pay.

There were a couple of articles about this general topic last week (Dire Budget Predictions for Chicago Schools, Schools hope for best, prepare for the worst).

There's stimulus money coming -- probably not enough, but still -- and some grants and earmarks (Obama's chief of staff has some in bill).

The good news is that -- so far -- there's no word that CPS was invested with Bernie Madoff, or that it was involved with toxic mortgage securities.

Filed under: 125 S. Clark Street

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