Allowing a Chicago pension bankruptcy

"Chicago Tonight” has learned that Gov. Bruce Rauner and top Republican leaders are planning to introduce legislation aimed at an emergency financial takeover of the city of Chicago and Chicago Public Schools. This comes in light of an imminent $500 million shortfall within the Chicago Public Schools system.

The Republican leaders are set to announce the legislation tomorrow, but Paris Schutz has the exclusive information tonight.

Sources tell “Chicago Tonight” that the governor and his top two legislative leaders – Senate minority leader Christine Radogno and House minority leader Jim Durkin will file a package of legislation Wednesday that would allow for an emergency financial oversight board appointed by the state to take over the financially strapped school district. Other legislation would allow for emergency financial oversight of the credit-beleaguered city of Chicago.

Legislation would also allow for CPS and the city of Chicago to declare bankruptcy – something by law both cannot currently do.

We’re also told that the legislation would call for an elected Chicago Public Schools board once the financial situation is remediated. This, in light of the fact that CPS has set now as a deadline to receive $500 million in relief from the state or else lay off thousands of employees, including teachers.