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Tuesday, June 18, 2024

Chicago Teachers Union's latest demands may cost taxpayers up to $13.9 billion

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Amy Korte | Executive Vice President | Illinois Policy Institute website

Amy Korte | Executive Vice President | Illinois Policy Institute website

CHICAGO (June 3, 2024) – With the Chicago Teachers Union contract expiring at the end of the month, leaked demands show the union is looking to negotiate over issues such as electronic bus fleets, stipends for asylum-seeking students, and CTA passes for all students and staff—items that go far outside the traditional scope of collective bargaining.

The demands could cost taxpayers $10.2 billion to $13.9 billion from 2025-2028, according to a new analysis from the Illinois Policy Institute. This figure does not include costs that could not be estimated, such as Airbnb housing rehabilitation for homeless students, housing stipends for teachers, and the construction of three new carbon-free, fully green schools—which could add billions more to the price tag.

Just CTU’s salary demands would add $2.52 billion to the cost of the next contract. The expiring five-year contract added $1.5 billion in costs.

“If the union secures even some of its extraordinary demands, this would likely be the most expensive public contract in state history,” said Bryce Hill, director of fiscal and economic research at the Illinois Policy Institute. “These demands could end up costing the city billions, driving up the cost of living in an already expensive city. Simply put, the city can’t afford something so egregious.”

Incorporating these costs into city budgets over the next four years could inflate spending on Chicago Public Schools each year by at least 27% and possibly more than double it—which would likely require billions of dollars in new tax hikes.

Despite record-high funding, Chicago Public Schools has seen enrollment drop by 20% since 2012, with student performance plummeting. In 2023, only 35% of 3rd through 8th graders could read at grade level.

“The union’s biggest-ticket contract demands stem from its desire for social justice; another example of how it prioritizes activism over student performance. With its former lobbyist in the mayor’s office, CTU is positioned to walk away with its farthest-reaching demands that Chicagoans will be on the hook for. This is why Johnson should recuse himself from negotiations,” said Mailee Smith, senior director of labor policy at Illinois Policy Institute.

To read more about the cost of CTU demands visit illin.is/CTUcontract.

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