To meet its obligations with the Chicago Teachers’ Pension Fund, by its June 30 deadline, Chicago Public Schools (CPS) has secured a short-term loan to the tune of $275 million.
According to the Associated Press, the district says the loan “creates sufficient cash” in order to do so.
CPS sold “grant participation notes” to JPMorgan Monday, which are to be repaid with state education aid.
The school district, the third-largest in the US, will also borrow an additional $112 million for district operations. According to the Chicago Tribune, this additional $112 million is being pursued because officials hoped to borrow $400 million.