Maybe Chicago schools should declare bankruptcy and get it over with, says Moody’s

Moody’s has a revised shortlist of painful fixes for the public school system in Chicago.

One idea is to approve another increasingly politically unpopular property-tax levy to pay off debt, as the nation’s third-largest school district just issued another batch of high-interest bonds.

The second idea from the credit-ratings agency is to skip a pension payment to the Chicago Teachers’ Pension Fund, which would come just months after the district and its teacher‘s union hammered out an 11th-hour contract to avoid a second labor strike in a span of four years.

And last resort? Just declare bankruptcy already.

Moody’s, which rates Chicago Public Schools debt B3 negative, has issued two updated reports reviewing the finances of the school district, and the city itself, which are individual bodies with separate budgets and their own debt.

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