The Chicago schools teachers pension fund is running dry
creating a crisis for the city.
The school district of Chicago has not put enough money away to pay
their retired teachers and was forced to sell investments and figure out where
they are going to get this money from.
For the district to barrow money, raise taxes or adjust classroom
amenities is not possible, therefore the school district of Chicago must go to
the state for help.
According
to the New York Times article, experts says the funds can collapse within a few
years if something is not done soon. Mayor Rahm Emanuel is focusing on
improving the quality of public education by extending the school day and
making teacher evaluations more meaningful. He attempts to fix the crisis by raising
the retirement age and increase the employee contribution rate. Governor Pat
Quinn and mayor Rahm Emanuel have both decided on increasing the amount the
workers pay toward their pensions. Although this is not a permanent fix for the
Chicago school district, but it can help for now.
I
believe the school district of Chicago followed the six steps while dealing
with their crisis. They knew what the problem was and the facts behind it and what they needed to do. They
came up with a temporary fix because efficiency is necessary under these
circumstances. I think they handled the situation well. Also by trying to
improve the school system, it will help keep good teachers in and acknowledge
the hard work they put in. Acknowledging this will impact the main reason for saving
for pension funds in the future.
http://www.nytimes.com/2012/09/20/business/teachers-pension-a-big-issue-for-chicago.html?pagewanted=all&_r=0
I think one of the biggest problems in the country actually deals with this in Chicago. Kids were without education and Chicago has a big history with gangs. Most of these kids are in the streets doing things that can end them up in jail. With school and education, it can almost help most of them out of the situation. Hopefully the city of Chicago can get them out of this situation.
ReplyDeleteThis reminds me of social security issue. Same as the Chicago teachers, majority people are going to face the retired funds issue in the near future. They are similar issues. People do not want pay more tax,especially in this ecnonmy downturn however the government has no funds for retire people. People today have to save money themselves for their retirement because the social security is not longer guarantee.
ReplyDeleteNow the state faces a problem of where to get the funding to reach a conclusion with the angry teacher. This could all have been avoided if stricter evaluations on teachers were placed to assure that those who are qualified could retain their job and the others would be dismissed until they were capable enough to teach. This has only contributed to the lacking education system in this country. Also, with such economic times and the employment rate fluctuating day after day, it seems hard for the new young generation to be alb to help alleviate the problem. Where is the modern economic superman when you need him?
ReplyDelete