Hurricane Milton is set to make landfall.

first off tonight, Chicago Public Schools, Chief Pedro Martinez joins us to address what he says is misinformation being shared by the mayor and others.

>> Martinez who says he's refused a request by Mayor Brandon Johnson to resign is engaged in an acrimonious battle with the mayor and the Chicago teachers union over education funding.

The CTU and Mayor Want Martinez to take out a short-term high interest rate loan to meet pension payments and cover the cost of a new teacher contract currently being negotiated.

Martinez has so far said no.

And on our program yesterday, Mayor Johnson seemed in no mood to compromise on his vision for high-quality public education.

>> I am not going to wait and take a passive approach.

Towards transforming our public school system.

The cuts have been severe in this district.

I'm not going to cut and take away layoff fire privatized so that other people can benefit and the people of the city of Chicago continue to lose, not under my watch.

>> And joining us now to share his thoughts is Pedro Martinez, CEO of Chicago Public Schools.

Welcome Back, Bay, Drew, thanks for joining us.

Thank you for having me.

Bring this.

So as we just heard from the mayor, he is impatient to start making the change is doing whatever he feels is necessary to transform CPS schools, especially for its black and brown students, which was part of his explanation for appointing new board members, as he mentioned multiple times is his just weeks, though, before the city elects new board members, how do you view this recent move with the entire board as we know, resigning last week, a new one being appointed within a couple of days.

>> Well, you know, Ben is Matt.

Let's let's start with some context and just things that have happened.

First of all, you know, the for that's about to exit wonderful board that is that is really, really work hard to really work with me on the complexities of CPS.

And what do we do together and by the way, on major things we with them together.

So, you know, really analyze and understand what was happening in our district as we look that different types of schools magnet.

But we didn't always agree choice magnet schools.

What the future should be we agreed is that we need to make sure prioritizing and investing What schools?

We passed, a budget that for the first time is need space instead of being student based budgeting which really uphold our schools in the highest poverty areas.

We passed a bold strategic plan that frankly, you know, it going to be a plan that not that the whole nation will be watching about the way where we our vision for education, about making sure that every child has access to quality education.

put this together, unanimous vote, no dissension.

You can go back to the public board meeting says here, the Commons, the board and the mayor actually acknowledge that as well.

So we have been transforming this district.

It takes time.

You know, the district didn't get here overnight.

I'm starting my 4th But today branded as I our schools have more resources than ever before.

We have more teachers in our classrooms.

We have smaller class sizes in our highest poverty areas we have we're number one in the country and reading recovery for the year.

23.

24, they just end.

There were about to report results next week.

We build on those gains.

And we also see in our high schools, you know, performing better than ever are we?

We need to be Absolutely not.

And so either way there's never been this alignment with the mayor, even with unions about making sure our schools are fully resourced.

There's never been this alignment with our board.

The mayor of the unions about about investing our schools and not cutting and really not making significant cuts in our schools.

of course, there has been this alignment over how we how you pay for that.

>> And the board that you said that you've achieved all of these accomplishments with who the mayor has appointed.

Now that board is going.

He's appointed a new one and some more going to get elected in a few weeks.

>> So as long as you are in this position, Pedro, you know, because you said that you declined the mayor's request that you resign to avoid further destabilization.

Does all of this defeat that effort?

>> Well, so, again, this could provide more context since the mayor came into office.

You know, with the former board we're having conversations about additional receive an additional to funding.

This is funding.

That, of course, is blocked off that even though taxpayers are paying their taxes every year, it's not, you know, provided to CPS to the city Chicago to our parks, the controlled by the city, but not for the for the be operational purposes.

So we since last year we were having that conversation as he was in coming and were able to figure out at that time the pension payment for 9 teachers, which is a state obligation, a legal obligation of the city, but represents our employees.

And so we knew we needed to do that.

We had an actual had many meetings with him and then leading into a large medium, April 30th, the earlier this year with my board president, our full board, not understanding what we're going to be discussing with all of my senior team, the mayor.

He's seeing a team and we made a very specific requests.

We said we need 462 million dollars in Tiffany because this will allow us to do multiple things will allow us to cover our normal base that we get every year.

In addition, we were just about to complete a negotiation of our ICU.

73 contract is our custodians or security staff.

It I'm really happy that we negotiate the contract.

A lot of equity.

And then we said, let's look ahead.

We know that the city wants us to make a pension payment for 175 million dollars.

It's also also the start looking ahead now because we knew that our teachers comes about to expire and we were going to pose reasonable raises similar to SEIU of 4%.

So that brought the total for 62.

He committed in addition to the first one, 60, which left a 300 million dollars at the end of that meeting.

What we said is let's wait to see where the legislature is going to land.

The session was just ending in Springfield, reasonable request and we still have a keen very hard and we had done it all session for more funding from the state.

And so we we that there was a long shot for us to get more funding than we expected.

They came in as we expected, not very much more.

Went back to the mayor and his team said, look, now we spoonfuls add, we still are seeking more to funding at that point.

He said, you know, I mean, we need to see that you actually are making cuts in the central office that you be inefficient, that you don't have money's other wells.

We turned over entire budget.

And again, this is together my board.

We turn to entire budget, extended the budget.

The budgeting in approving joining got up July.

Instead, we were very disappointed by this that we got back was even though the South we can make any more cuts.

You may know the cause you could make.

You should really think about because nation really borrow.

And we took the position of okay.

Maybe they don't understand the history or the risks.

The CPS has and borrowing because we went through this path before back in the years of 15, 16 17, the district took out 2 billion in loans and refinancing means and today plan is in my deficit.

I am paying 194 million dollars and interest-only payments toys that that is not even the principal.

So we put that in the memo.

Sure that shared with the mayor even share with them privately that really didn't feel he was getting the best counsel.

He listened came back, so insistent on the lawn.

My board said we cannot me explain really why way?

We couldn't.

We know right now based on public data and this tips.

In just at the end, the lease public data, which is in the 23 invest more current data.

We have mercy that 3 billion dollars, 3 billion with a B in the back that has been collected.

So my neighbor to Pilsen.

word tax taxes and increased two-fold.

3 full on those going to a tip.

They don't go to CPS.

In addition, 1.2 billion dollars with a B is collected every single year.

And the sense of those $0.50 of every dollar would be going to CPS in those innings.

so to ask for 462 million dollars that, by the way, one 75 of that goes right back to the city because again, it helps their their budget because it's not a legal obligation of the district will a 400.

>> Plus million dollars 2 to 4.62 get that down.

We reason to 44 recently good because that would for 84 recently.

So I mean, that's that's a significant leap from the amount of TIF dollars that you had previously been getting.

What do you say to some critics who say, you know what, CPS should be better stewards of its dollar?

We should not be couldn't put bailing them out with with tip funds.

And what if, you know, Springfield with no one comes to save CPS Springfield or to funds.

So so let's be with her about what Sr. >> 70's 80's, you know, I grew up in 7 here.

And Chicago, Chicago kid all the way.

I remember downtown in the 70's and 80's.

I remain unable to pull sit in the 70's and 80's.

These tests have done.

You know, I've done, you know, really helped our city to invest to violence.

Many communities.

I know the value tips.

Those tests have grown so much.

Those tests were supposed to go back to taxing bodies.

That was CPS.

That was that City Park district and with the parties could have done with all these resources.

And so for us, I would I would I would respectfully submit and this is that these funds should have always come back to CPS.

But I also know it's much more complex than that because there's there's still a lot of development is happening in our city.

And by the way, that helps CPS in the long run.

So that's why we said look with 3 billion in the bank with 1.2 billion coming in every year.

All with beast billions.

All we're asking for is for foreigners.

62 million dollars.

Now that we've been in Goshen for the with CTU, We've increased that to 484 million dollars.

And so again, the first one, 60 was promising that we included that in our budget, the 300 million that was left.

That's what we asked to borrow.

And we said we just cannot.

It's not a responsible especially when we know these resources exist.

And so again, you know, I would it in the reason we're bringing this up today.

But and this is because the city Council approves or budget around this time of the They make the final decision on tests.

And so we had a scheduled with all the men are being in the Budget Committee last week and Thursday.

It got moved to the 22nd but important.

So we said we can't we can't wait.

I'm already been talking to alders.

already getting early support because they understand this.

But this for us is an important, by the way, this is also part of the in this entanglement of the city and the district as we come becoming independent body.

>> You mentioned that 22nd hearing regarding the budget.

We should also note, I think the Education Committee of the City Council's also called a hearing for next Friday, the 18th.

But there's no guarantee, of course, that any board members are potential board members will present themselves at that.

This might be something that CTU and you kind of agree on, actually, because today they released a plan calling for the city to quote D 2 if the city and use what they say would free up about a billion dollars of revenue to fund schools.

Here's a bit of what they call for this morning.

>> The CEOs reported plan to balance the budget through program cuts.

The office of furloughs would deeply disrupt schools and harm students and we can Chicago's communities.

>> Our plans to test.

The entire city, a Chicago by expiring all and sleeping fund balances would generate well over 1 billion dollars in surplus immediately.

Ensuring that our schools are stabilized instead of facing down cuts.

>> Now NC to use statements or later today when they heard about your proposal.

Bay, the call to a day late, a dollar short because they argue for this this morning.

But they didn't learn or they say they did not learn about your proposal until this afternoon.

You say that you and the mayor have been having these conversations beginning months ago.

>> only that, but is.

But let me add the sauce well as contacts.

Even after after the put 30th meeting we made it was a presentation.

We meet the requests.

opened up our budget to the city, the Biden seat to you and to the table.

And so on his contacts they had.

And so no, we backman actually advocating myself and the board have been advocating with past administration, which seat he was as well with the current administration.

And so this is why I wanted to make sure these facts are out there.

And so so really, you know, we do agree that we need to have a long-term solution for tips.

What is misinformation also is that we're proposing cuts.

Brand is what we were showing.

The mayor was that the reason we cannot put the pension payment in our budget.

The reason we cannot put early raises for CTU, it force me to cut.

And he already had told me that there was no way he could support that.

And I agree with we with the music.

He was already upset that we had this place, some teachers and teaching assistants because based on need, they had to switch schools getting even like that.

And I said, look.

promised them full employment, every teaching assistant every teacher, any special and professional.

And it was again, so them so they could go to schools with the need was at.

And so this is always been a very sensitive topic for I fully respect that.

I get that.

We have the same vision we need to fully resourced schools.

We have to have actual conversations about the role of tips, continued advocacy with the state and continue with the federal government.

It is not for one body to funded.

By the way.

Good thing.

I'll mention minus right now.

The burden of funding public education, Illinois falls on local taxpayers.

60% of our funding.

I am very concerned, by the way, not including tennis, not including the tests.

So so when you factor, how much or bearing today and these tips exist, I just think ethically responsibly.

We have to look at tax both for the short term challenges and we have a We have have a long-term plan.

What concerns do you have that, you know, this very public dispute is impacting.

>> Students, parents, families, taxpayers.

>> So what I can tell you right now, is is my principles award.

I constant communication from teachers and parents as much as people think it doesn't matter who the CEO as it is.

And it isn't about me, by the way, but its about my entire team.

It is about the values integrity that we display on a daily basis.

The supports the additional 2000 teachers and have added doing doing our Tanya My my team tonight, the additional thousands of paraprofessionals, the additional social workers, nurses, counselors.

Those investments.

I'm very concerned they're going to be put at risk because it we're not responsible and how we and by that, we have a balanced budget today.

The dispute is they're asking us to put on additional expenses without that revenue source tipped as one funding source.

In addition, I want to make sure that we continue to get our advocacy with the state, but I am hearing a lot of worry our district for the first time the last 2 years we stabilized enrollment after decades of significant declines.

So all the complaints I heard about schools getting hollowed out and emptied out.

We're seeing growth in our district and we and we're seeing academic success.

And so that's what I'm worried about about protecting balanced budget at the same time with the acknowledgment that once that contract is completed.

>> You'll have to come back work in whatever whatever has been agreed to for the teachers.

When we get to that point almost out of time, you what would you say?

Your working relationship with the mayor is like right now?

>> So, you know, I really started with both having a passion for district and it actually grew again, the tension that has existed in the last few months Brandis has been over this issue about pensions, about Bahrain.

I want to make sure that everybody understands the facts.

Look, all of us can get emotional on both.

The mayor and I both passionate people.

I I am still optimistic that we continue to have a strong relationship.

We have the same vision, fully resource in our schools, making sure that our schools are invested in.

He was the one candidate that acknowledged how under-resourced schools were.

And that's why I've always been supportive of him.

>> Okay.

And the new board members, I take it.

You probably have not had the chance to shake any of their hands just yet.

They don't know me.

I don't know them.

I'm looking forward to meeting them.

I want them have all the information that they need.

I want them to have all the facts.

And so that's my plan.