School Panel Rejects Idea That Budget Is Balanced

The Chicago School Finance Authority on Thursday rejected theBoard of Education's claim that its budget is balanced even thoughGov. Edgar hasn't released $43.7 million in state aid.

"It is abundantly clear that there are no guarantees that thosemonies are forthcoming," said finance Chairman Martin Koldyke at ameeting of the five-member authority.

Review of the board's revenue estimates by attorneys andadvisers from Peat Marwick is the first step in the oversight panel'sinspection of the $2.6 billion budget. The authority will vote onthe budget Wednesday.

Koldyke said later that several elements in the board's revenueestimates are not dependable, including the board's contention thatthe teachers will end up with a 2.6 percent increase instead of the 7percent promised.

Board President Florence Cox defended the budget, saying boardmembers felt it was balanced because of ambiguous statements Edgarmade when he vetoed the speedup in state aid.

Edgar said he could still grant Chicago's September payment inAugust. Cox said that prompted board members to include the futurerevenue in the budget. But two days later he refused to use hisdiscretion, saying Chicago had to get its "fiscal house in order."

The governor also said he wanted to see how the conflict betweenthe board and the Chicago Teachers Union over salary issues playedout.

Again on Thursday, Edgar sent a double-sided message to theboard:

"If and when the school system brings spending under control . .. the Governor certainly will be willing to consider accelerating theschool aid payment," said Mike Lawrence, the governor's presssecretary.

But even as Koldyke sent board members back to the drawing boardto fill the gap, he acknowledged that the increasingly tight visesqueezing Chicago schools was put there by a lack of state funding.

"Any cynic that would suggest that we are going to be able tocut our way out of this dilemma is living in a fool's paradise,"Koldyke said. "It is fiscally mandatory that we've got to increasestate support."

Cox called on not only Edgar, but also the finance authority torelease reserve money to plug the budget hole.

"We cannot do it without some help," Cox said. "If we cannotuse (the money) I think it is time now for other key actors in thescenario to step up and start carrying this ball. There is no placeelse to go."

Former board President Clinton Bristow Jr., who weathered thesame storm last year, said nothing is going to be spared when boardmembers make the next round of cuts.

"You have to basically open up every possibility. Before wetried to deal solely with central administration to get all of thedollars. Now we have to put everything on the table," he said.

"We all hope that the speedup will be forthcoming," Koldykesaid. "But the big hole that really has to be negotiated is theteachers' salaries. And the sooner we get to that, the better."