Chicago public school officials last week said they have revised the school system's projected fiscal 1996 budget deficit to $290 million from $325 million, based on improved estimates of its revenues.
Charley Gillispie, the Chicago Board of Education's chief financial officer, said in a release that the revision does not take into account teacher salary increases. He noted that each 1% rise in salaries would increase the shortfall by $12 million. The board's contract with the Chicago Teachers Union expires on Aug. 31, 1995.
Clinton Bristow, chairman of the board's budget committee, said that the board's previous shortfall projections were made in January.
The revision in the projected 1996 deficit came on the heels of the board's July 27 passage of its $2.9 billion fiscal 1995 budget.
The budget for fiscal 1995, which begins Sept. 1, is balanced with $203 million of proceeds from a February bond issue designed to bail out the school system through fiscal 1995.
The Chicago School Finance Authority, the school system's oversight agency, sold $410 million of general obligation bonds to allow the school system to operate in fiscal 1994 and 1995. The bond issue provided $175 million to balance the school board's current budget.
The School Finance Authority has until next Monday to approve or reject the board's budget.
-- April Hattori, Chicago
