>> The Chicago Board of Education is facing a looming deadline on the district's budget board.

Members have to come to a consensus by Friday or face being in violation of state law.

The issue not everyone on the board is on board.

11 members recently signed a letter knocking the current budget proposal for not including an option to take out a loan to cover the cost of the municipal pension payment.

the plant House keeping cuts out of the classroom.

There are concerns about long-term financial stability joining us now, our Jennifer Custer, the CPS board member representing District One B, that includes neighborhoods like Irving Park and Portage Park and CPS board member Angela Gutierrez who represents District which includes neighborhoods like West Lawn and Garfield Ridge.

Welcome to Chicago in a thanks for joining us.

Thanks so much, Thank you.

So as mentioned, CPS leaders say that the budget protects classrooms even with that 126 million dollars in cuts to central office staff.

It projects.

Jimmy.

Do you think the proposal cuts will really steer clear of students in classrooms?

I do.

I think that the budget that we've been presented protects kids protects classrooms and protects the financial future of the district.

>> And I think those that oppose this budget are really threatening to potentially shut down the district, but also they're threatening the financial well-being of the district in years to come.

>> Both of you have expressed opposition to paying into the municipal pension this year in jail.

Why is deferring that payment?

What do you think?

That's the best choice for CPS, right?

Now-you know if you think of them but it is all rights balance.

That's responsible community driven.

And our ability to be have to pay Now.

>> We'll take 175 million dollars out of the clash because somehow some way we will have to pay for that.

We'll have to take some of the savings out of the classrooms and you can't have that do feel like the organization has really been cut as much as it can with half an inch of the classroom, basically just enough to stay away from classrooms.

And after.

>> If you had to spend that 175 million dollars from the CPS budget, that's when we see the hit.

It will it will.

It will take dollars away from the classroom that me teachers down the age.

That will mean some of our ramming programming that we're doing in the schools as well.

So critics argue that deferring this payment.

only kicks the can down the road.

How do you respond to concerns that this only deepens the district's long-term financial instability and postponing the inevitable?

>> I mean, I think paying this payment is is nothing more than helping the mayor fix his own budget gap.

I mean, the state law says that this is a payment that the city makes.

This is not a payment that the district makes all this really is is fixing his budget problem.

And we as the governing body of the board of Chicago, the school Board of Chicago, our job is to make sure that we're making the best decisions for the district as a whole moving forward.

And state law precludes us from making that payment.

>> So last week, your Micaela Blaze and YouTube round, they joined us in Blaze had a bit of a different view.

Here's what she said.

>> The entire and the pension payment as a billion dollars.

Half of that is CPS employees.

So we'd say roughly half a billion dollars should be our portion.

And the city's only asking for for us to put in 175 routes.

They're giving us in 10th.

So if you look at it comprehensively, we still end up on the plus side and we are we also have skin in the game and we're taking care of our employees.

>> And what's your reaction to perspective?

So, you know, it's interesting hearing that I think >> us moving forward as poor as wheeze.

Begin to look at what this entanglement looks like from the city of Chicago.

All those things will have to be at the table.

I thing in this current budget cycle, I would challenge the education mayor.

To stop.

Trying to shake that.

And take dollars out of the classroom.

To help fund.

His particular problems.

So the plan accounts on nearly 379 million dollars in TIF revenue an angel.

You've argue that that's money that's already owed to the district, right?

Because it's already factored into the district's budget.

>> Is tiff?

Is that a reliable fix or short-term short-term patch for the district?

>> think it's a combination, I think, right?

When you earn those dollars, they're caught right until the expiration of tax increment finance turned district right?

So so it's it's a double edged sword.

But every year.

Over the course of the last 10 years.

There's been a declaration, a surplus in And roughly, I think there's 3 point 1 billion dollars in that if not give you a billion dollar reason.

Why the mayor has to declare attempt because he's got a billion dollars with the problems.

>> Almost literally.

far as like the size of the budget they after that is of Jenny.

You've also supported using tip.

do you respond when critics say that, you know, using only makes the district more vulnerable year after year?

You know, I do.

I do think it is kind of a short-term fix right?

I think what our job is here on this board, what we are tasked to do is we're task to set up the district for financial stability moving forward.

>> And sometimes, yes, it does require some really hard moves like we've had to make this year.

Nobody wants to make any cuts anywhere to the district.

We don't want to do that, but we might have to make some of those moving forward.

If we want to put the district in financial stability.

And the fact of the matter is changing this budget in any way threatens that financial stability moving forward.

And it's our job to make sure that we're keeping it as healthy as possible so that we're not constantly coming back to the discussion about whether or not we're gonna have to surplus to make it over the finish line.

>> So the plan does not include new borrowing.

Both of you have been opposed to taking out a massive loan to cover the district's finances.

And so if accruing new debt is off the table, gentle, come to you with this.

What realistic alternatives to CPS have to maintain stability?

Yeah, we've I mean, we have to look at some structural changes.

We have to look at all of our spending.

What are we spending it on?

How is it affecting the students in her classroom?

What are the outcomes of that spending?

>> And we need to take a really good hard look at some of that and have some really honest conversations and, you know, we began this process already with this budget by going out to the community, talking to them about some of the issues, asking them what their thoughts are, how they feel about things.

And they gave us some of that feedback already.

And those are things that I think we need to continue to do is engage our communities and engage that conversation about what we do moving forward as a district.

>> And I think the reason that we are against that borrow because we saying what it's done in 2016 to 2018, right?

200 million dollars loan that.

Is the equivalent of 2000 teachers.

Job.

So think about that.

That that would put most out of business as a district and we can't have that.

>> So some state legislators, Representative Curtis Tarver in particular have suggested that more state funding should come along with more oversight and reform.

Here's a little bit of what he had to say on our show earlier this month.

>> But I do think this, too, needs to be a role for the state to implement some reforms.

we're going send that those funds to CPS.

>> One of the 2 of you make of that should any additional funding from the state mind you?

The state has said repeatedly they don't have money for CVS, but should any additional funding come with, you with ties basically to show that there are reforms or improvements.

I think before that conversation even starts, we need to talk about how charity begins at home.

I mean, every state representative that I've talked to every legislator that I've spoken with is looking for us to make these hard decisions to set the district off on the right path before we come asking and knocking at the door for more funding and more things like this.

So I think charity begins at home.

I think we need to start having some of these really difficult conversations and start making some of these difficult choices and setting the district up for a stronger financial future.

And then when we've made some good progress, we should start working with our state legislators and we should start talking about how do we do better and how do we advocate for more?

Both of you voted no for interim CEO Macklin who was, of course, backed by the mayor.

But since an angel, you've said that, you know, she's actually change your mind.

You've been pleasantly surprised by her leadership.

What is it >> that she's done or said to win you over?

You know, I she's pretty even keel.

>> And she is really everything.

She said she was going to.

She's kept her word.

And I think that goes a long way in a leader.

She wanted to do these community gatherings to gather the information and what did the gathering overwhelmed learned so much that.

Residents and parents wanted.

To keep no cuts to the classroom.

They wanted to make sure that we didn't take on any additional.

Revenue and growing that we pay that payment unless there was additional dollars right.

And those are the same things that the former superintendent.

Told her she that that yes, who, of course, is wired by your Jenny, what happens if you all don't agree on a budget by Friday?

>> That is the big question.

If we don't agree on a budget by Friday on the district spending authority per our resolution passed in June.

And if we do not agree if we cannot come up with a balanced budget and if we cannot pass a budget, we are potentially looking at a district wide shut down until the time when we can couldn't successfully passed 10 seconds left.

What do you think the likelihood of that is to go into Thursday's meeting with full faith that you all will be able to get this done.

>> I trust and hope that my colleagues will understand the gravity of the situation and will understand at the end of the day, what this means for the children in the classrooms and the families across the city of Chicago who who send their kids to the schools and entrust us with them.

So I'm