Thanks to the state’s failing budget, Chicago Public Schools were forced to borrow $112 million with almost-unreasonable interest rates
The state budget crisis continues to harm all of Illinois with harsh financial impacts, and Chicago Public Schools are finding themselves in the middle of the unbalanced books.
Recently, CPS were forced to borrow money at interest rates far higher than a typical government would permit.
Relying on borrowed money for the rest of the school year, the cost of the latest loan comes with an interest rate four times higher than a state government with good credit ratings would see, according to the Chicago Sun Times.
A week after borrowing $375 million from J.P. Morgan at a rate of 6.39 percent, CPS secured another $112 million from the same lender at 6.41 percent.