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"it is not that Chicago Public Schools does not have the funds. It's that Rahm Emanuel sold the school district to Jamie Dimon, JPMorgan Chase, and other bankers and left it broke on purpose."
The Chicago Teachers Union on Wednesday demanded a state investigation into a series of loan deals made with "predatory" Wall Street banks under ex-Mayor Rahm Emanuel and former Illinois Gov. Bruce Rauner that left the city's school system "broke on purpose."
"For years, banks scammed [Chicago Public Schools] with predatory financial deals, taking money out of our classrooms and shortchanging our students," CTU detailed in an online contract update. "For years, CPS and many other Illinois school districts have been systematically underfunded, burdened by bad bank deals, and forced to do more with less. We will need leadership from every level of government to transform our schools with the resources they deserve."
According to the Chicago Sun-Times: "During the financial crisis, stemming from the budget stalemate under... Rauner, from 2016 to 2018, CPS took out six high-interest loans. Just on these loans, CPS must pay $194 million this year."
CTU's letter to Illinois Attorney General Kwame Raoul requesting a probe says that "the predatory loans CPS took on were at sky-high interest rates unheard of for municipalities and public bodies, especially at a time when interest rates were at record lows."
As the union—now in bargaining talks with the city over a new contract—said in a statement about the request:
In other instances of predatory banking, state and local officials sought remedy through class-action lawsuits and other legal efforts to recoup funds, address the harm, and defend the public. However, in Chicago, the school district is still paying $200 million per year to lending institutions for loans that JPMorgan Chase, among others, sold and earned 9.5% profit or $110 million in the first year alone.
The CTU points to multiple historic examples of public officials upholding their responsibility to defend the public from such practices and is calling on current elected officials to fulfill the same obligation.
CTU Local1 president Stacy Davis Gates stressed Wednesday that "it is not that Chicago Public Schools does not have the funds. It's that Rahm Emanuel sold the school district to Jamie Dimon, JPMorgan Chase, and other bankers and left it broke on purpose."
"Our elected officials have the responsibility to investigate those predatory bank deals, just as they did successfully in the wake of the subprime mortgage crisis, and recoup the hundreds of millions of taxpayer dollars that the banks stole from the public and our children," she asserted.
The union is arguing that Democratic Illinois Gov. JB Pritzker, the Chicago Board of Education, and city officials including Treasurer Melissa Conyears-Ervin and Mayor Brandon Johnson, a former CTU organizer, "must all play a role in helping fund our schools and undoing the damage from the Rahm and Rauner years of predatory bank deals, and the decades of inadequate state funding."
CTU held a Wednesday morning press conference, during which Saqib Bhatti, co-founder and executive director of the Action Center on Race & the Economy, said that "we're here at Chase today because Chase took a bunch of money that belongs to our kids."
"CPS is [in] dire financial straights right now, and one of the big reasons is because banks like JPMorgan Chase and Bank of America systematically ripped off CPS for years and years and years," Bhatti continued, surrounded by people holding signs with messages including "Chase Profits Off Students" and "Bad Bank Deals Cost CPS."
"We know during the subprime crisis that banks were selling predatory loans to Black and brown families, loans that were designed to fail," he explained. "They did the same thing with CPS."
CTU also invited Bhatti to speak during Tuesday's public bargaining session at Morgan Park High School—the third event of its kind since the union began negotiating with CPS in April, before the teachers contract expired on June 30.
The Chicago Board of Education passed a $9.9 billion budget last month. As Chalkbeat noted at the time, it features "cuts to central staff and administrative costs to help close a roughly half-billion-dollar deficit," and doesn't account for increases to teacher salaries, due to ongoing talks. Both Johnson and the union opposed staff layoffs.
CPS claimed during the Tuesday event that the additional cost from just 52 of over 700 CTU contract proposals would increase the district's projected deficit for fiscal year 2026 from $509 million to $2.9 billion, and by fiscal year 2029 it would hit $4 billion.
As the
Sun-Times reported:
The CTU's bargaining presentation for Tuesday's session did not ask the district to take out a loan, but it challenged officials' financial analysis and claims that they lack funding.
The union pointed to revenue initiatives that the city and state could explore, like more heavily taxing millionaires and corporations—which would require changes to state law—or seeking federal funding for school building improvements. The union also suggested efforts that could take years and would not solve the budget problems in the short term, like fighting banks for past "predatory" loans to CPS or seeking money back from past "bad vendor contracts."
"These predatory deals are costing hundreds of millions a year," said Pavlyn Jankov, research manager for the CTU. "The district has to make every effort to claw back those funds."
The newspaper noted that CPS chief financial officer Miroslava Mejia Krug "revealed that the school district is actually a part of some national lawsuits against banks, but it is unclear whether those lawsuits specifically address high-interest loans."
The ambassadors of the Canada, France, the U.K., Italy, and Australia are also expected to boycott the event.
U.S. Ambassador to Japan Rahm Emanuel will skip an event later this week commemorating the victims of the United States' atomic bombing of Nagasaki in 1945 over the city government's decision not to invite Israel, which is currently waging a devastating war on the Gaza Strip.
Nagasaki Mayor Shiro Suzuki said the decision not to extend an invitation to Israel was made out of concerns about "possible unforeseen situations" such as protests over the Gaza assault or a potential violent attack at Friday's event.
In June, as Common Dreams reported, Suzuki expressed concerns over "a risk of unpredictable disruption" stemming from "the critical humanitarian situation in Gaza and international opinion."
"Boycotting the Nagasaki memorial service to protest the exclusion of Israel, a state which is actively committing genocide, is incredibly disrespectful to the civilian victims of mass killing in both Japan and Gaza."
Gilad Cohen, Israel's ambassador to Japan, responded furiously to the Nagasaki government's decision and dismissed its reasoning, accusing the city's mayor of "inventing" security fears.
"It has nothing to do with public order," Cohen told CNN earlier this week. "I checked it with the relevant authorities that are responsible for public order and security, and there is no obstacle for me to go to Nagasaki."
CNN noted that "Cohen did not reveal more about why he felt there were no security concerns, citing confidentiality."
The U.S. Embassy in Japan said Wednesday that Emanuel, the disgraced former mayor of Chicago, opted to skip the event because he believes Nagasaki officials "politicized" it by not inviting Israel's ambassador.
The Associated Press reported Wednesday that "Nagasaki officials said they were told that an official of the U.S. Consulate in Fukuoka will represent the United States at Friday's ceremony."
The ambassadors of France, Italy, Australia, and Canada are also expected to skip Friday's event.
Canadians for Justice and Peace in the Middle East voiced outrage over the Canadian ambassador's decision to boycott the Nagasaki ceremony, calling the move a "grotesque political stunt."
"Boycotting the Nagasaki memorial service to protest the exclusion of Israel, a state which is actively committing genocide, is incredibly disrespectful to the civilian victims of mass killing in both Japan and Gaza," said Michael Bueckert, the group's vice president. "It is absurd that Canada is standing up for Israel's right to attend a memorial ceremony for the victims of the United States' nuclear bomb on Nagasaki while its ministers casually call for dropping the same weapons on civilians in Gaza."
"Canada is demonstrating that its priority is not a cease-fire but defending the sensibilities and reputation of a genocidal regime," Bueckert added.
"The historical backgrounds of the two parks will forever be different," said one survivor and peace activist.
Representatives of hibakusha—the Japanese community of survivors of the United States' bombings of Hiroshima and Nagasaki in 1945—are denouncing an agreement between the U.S. and Japan that equates the indiscriminate killing of hundreds of thousands of civilians with with at a World War II attack on a key U.S. naval base.
The Biden administration last week signed an agreement with Hiroshima Mayor Kazumi Matsui establishing a "sister-park" relationship between the Japanese city's Peace Memorial Park and the Pearl Harbor National Memorial.
At a signing ceremony at the U.S. Embassy in Tokyo, U.S. Ambassador to Japan Rahm Emanuel appeared to equate the events that the two parks memorialize.
"Nobody can go to Pearl Harbor, and nobody can go to the Hiroshima Peace Memorial and enter the front door, walk out the exit door and be the same person," Emanuel said.
Japan's surprise attack on Naval Station Pearl Harbor in Hawaii in 1941 killed roughly 2,300 U.S. military personnel.
The Truman administration's decision to drop an atomic bomb on Hiroshima in August 1945 immediately killed roughly 80,000 civilians, and a second bombing of Nagasaki killed about 70,000. Another 140,000 people died by the end of that year from the effects of the bombing.
The city of Hiroshima estimated that a total of 237,000 people were killed from radiation poisoning, cancer, and injuries in the five years after the attack.
Atsuko Yamamoto, a Japanese educator in Osaka, said the two attacks were "completely different" considering the scale and targets.
Several survivors wrote to Matsui ahead of the ceremony to question to purpose of the sister-park agreement, arguing that the two attacks "are historic lessons to learn from and to never repeat" but not "something that we should forgive each other for."
"The historical backgrounds of the two parks will forever be different," Haruko Moritaki, an A-bomb survivor and peace activist who advises the Hiroshima Association for the Abolition of Nuclear Weapons, told the Chugoku Shimbun newspaper.
In response to the pushback, Emanuel said people in Japan should not be "trapped" by the emotions of "anguish and angst" associated with the devastating bombings that took place nearly 80 years ago, and that the agreement between the U.S. and Japan "is the example of what I think this world desperately needs right now."
Kunihiko Sakuma, who chairs the Hiroshima Prefectural Confederation of A-Bomb Sufferers Organization, said reconciliation cannot truly be reached between the two countries until the U.S. acknowledges that "The A-bomb did not end the war and save the lives of American soldiers as the U.S. side likes to say."
"It was clear that Japan was going to lose," he told Nikkei Asia, saying the attack was unnecessary and meant as a display of U.S. military power.
"Unless that fundamental issue is addressed, we cannot just focus on the future," said Sakuma.