Chicago issues $423 million capital plan

Thursday, May 8, 2014

Mayor Rahm Emanuel's cash-strapped Chicago Public Schools on Friday unveiled a $423 million construction and renovation plan for 2015 that directs nearly half of the money toward facilities on the city's North and Northwest sides.

While not large by recent standards, the majority of the new capital plan is to be financed by borrowing, adding new pressure to a CPS budget already threatening to buckle under mounting pension costs, a projected $1 billion deficit and bad credit ratings.

CPS said it would finance $260 million in construction spending with revenue from bond sales, with an additional $134 million coming from tax increment financing district revenues as well as state and federal funds. The plan also includes $29 million in costs associated with moving the district's headquarters, which CPS said will be paid for with savings from that move.

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