Moody's Investors Service on Tuesday downgraded Chicago Public Schools' bond rating after the cash-strapped district proposed a budget that would deplete its financial reserves.
Moody's lowered its outlook for the district from stable to negative, citing its $5.9 billion in general obligation bond debt. The agency's lowered rating means it will cost more for the CPS to issue bonds.
CPS faces a $665 million deficit. Its proposed budget calls for a 2 percent raise for teachers, but that figure could grow during contract talks with the teachers union. The proposed budget drains $432 million in reserves. ...More HERE
