Chicago Sun-Times

COLD, HARD CLA$ H

Former CPS CEO Vallas launches campaign by attacking Rahm’s management of city finances

- BY FRAN SPIELMAN, CITY HALL REPORTER fspielman@ suntimes. com | @ fspielman

Former Chicago Public Schools CEO Paul Vallas got an early rise out of Mayor Rahm Emanuel by accusing the mayor of “punting” Chicago’s $ 36 billion pension crisis during his first term, making the problem infinitely worse.

Now Vallas, 64, is launching his campaign by intensifyi­ng his attack on the issue Emanuel views as his greatest strength: stabilizin­g city finances.

He argued that Emanuel’s failure to push a “pension equity bill” for Chicago Public School teachers while Democrat Pat Quinn was still governor will cost taxpayers an additional $ 1.5 billion.

“If he would have done that and combined that with a legislativ­e agenda to ensure that the Chicago teachers retirement system was equitably funded through Springfiel­d instead of waiting seven years, the city would be in much better shape and we wouldn’t be facing another financial cliff three or four years down the road,” Vallas told the Sun- Times.

“Politics drives everything in this administra­tion. . . . Everything is focused on fundraisin­g. Everything is focused on getting through the next election.”

Emanuel has “hinted strongly” at another wave of post- election tax increases to keep four city employee pension funds on the road to 90 percent funding. But he won’t “talk about on who and howmuch,” Vallas said.

“Do you really trust him to make . . . decisions on where to go to get those revenues that are not going to adversely impact working families? Look at the tax increases. They have no relationsh­ip to one’s ability to pay,” Vallas said.

Vallas hammered the mayor for reneging on a 2011 campaign promise to hire 1,000 additional police officers and allowing police manpower to dip to dangerous levels before embarking on a two- year hiring blitz after the murder rate soared.

The mayor also balanced his first budget by closing police stations and eliminatin­g more than 1,400 police vacancies.

“When I was city budget director, we built the police force to 13,500. We had 1,200 detectives on the street,” Vallas said.

“They have played the attrition game and allowed those positions to plummet. . . . I’ve seen numbers as low as 600. Others have told me 800,” he said. “What they did for four or five years was totally de- stabilize the police department.”

Emanuel was elected in 2011 on the strength

PAUL VALLAS ON RAHM EMANUEL’S POSSIBLE POST- ELECTION TAX INCREASES: “DO YOU REALLY TRUST HIM TO MAKE … DECISIONS ON WHERE TO GO TO GET THOSE REVENUES THAT ARE NOT GOING TO ADVERSELY IMPACT WORKING FAMILIES? LOOK AT THE TAX INCREASES. THEY HAVE NO RELATIONSH­IP TO ONE’S ABILITY TO PAY.’’

of the black vote and re- elected after African-American voters forgave him for closing a record 50 public schools.

Vallas is now hammering away at the issue of school closings, well aware that Emanuel’s handling of the Laquan McDonald shooting video will make it difficult for him to get a third chance with black voters.

“If you’re gonna close schools, why open schools simultaneo­usly?” Vallas said of the mayor’s plan to close four under- enrolled high schools in Englewood and build one new high school.

Vallas noted that enrollment “grew by 30,000” — to 434,000 — under his watch. That’s 62,618 students more than the 371,382 who attend Chicago Public Schools today. CPS opened 15 charter schools on 18 campuses during his six- year tenure. The system nowhas 122 charter schools.

“They’ve continued to open schools while enrollment has declined, creating over- capacity, which hurts all schools,” he said.

“If a high- performing school is struggling, figure out a way to give more students access. . . . Work with that school to develop a plan and give them a timeline for boosting enrollment. And if you finally decide you have to close a building, then for heaven’s sakes have a strategy for re- purposing that building so you’re just not leaving a vacant building in the heart of a community that’s already under- served.”

Emanuel has already branded Vallas the “architect of kicking the can down the road.”

His response to Vallas’ campaign launch had a similar ring.

“As he did in Philadelph­ia and New Orleans, Paul Vallas left Chicagoans a fiscal time bomb. . . . Paul Vallas planted the seeds of the pension crisis when he raided pensions to pay for expenses” and “eliminated the dedicated funding set aside just for pensions,” the mayor’s campaign spokesman Peter Giangreco wrote in an email.

“Mayor Emanuel and the taxpayers of Chicago have spent years unraveling Vallas’ damage, fought to restore this funding and generated new revenue to finally put CPS back on solid financial ground.”

Vallas showed up at a Sun- Times interview Monday prepared to defend his tenure at CPS.

He said he left CPS with “hundreds of millions” in cash reserves and a fully funded pension system that triggered “12 bond rating upgrades.” He left the system with “78 new and replacemen­t school buildings” after “six years of improved math scores, five years of improved reading scores” and higher graduation rates.

Nine weeks ago, Vallas’ youngest son died at a substance abuse treatment facility in Huntington Beach, California.

The death of 24- year- old Mark Vallas had political pundits questionin­g whether Vallas would have the stomach for the grueling 2019 campaign after living through a parent’s worst nightmare. But Vallas said therewas “never any doubt.” All three of his boys— the surviving two are

RAHM EMANUEL’S CAMPAIGN SPOKESMAN PETER GIANGRECO ON PAUL VALLAS’ TENURE AT CPS: ‘‘ PAUL VALLAS LEFT CHICAGOANS A FISCAL TIME BOMB. . . . PAUL VALLAS PLANTED THE SEEDS OF THE PENSION CRISIS WHEN HE RAIDED PENSIONS TO PAY FOR EXPENSES.”

police officers, one in San Antonio, the other in suburban Wheeling— were “the strongest advocates for me running,” Vallas said.

“I wanted to make sure that everybody was comfortabl­e with it and my wife was comfortabl­e with it. So obviously, we needed some time to reassess and get other things in order. But if anything, we’re probably more enthusiast­ic about doing it now,” Vallas said.

Vallas served as revenue director and budget director under Daley before being dispatched to CPS in a dream- team pairing with then School Board President Gery Chico, who had been Daley’s chief of staff.

The career bureaucrat hopes to stand out in a crowded field of mayoral challenger­s by wowing Chicago with his breadth of knowledge and experience.

Why, then, kick off his campaign without offering a single solution of his own?

Vallas says he’s trying to be “discipline­d”— not exactly his strong suit.

“I could rattle off six or seven or eight things that I would do in a very disorganiz­ed way. [ But I would ] rather have a specific discussion about budget and finance, about pensions, about public safety, about infrastruc­ture, about what I’m gonna do to revitalize the Chicago Public Schools,” he said

“What I’m hoping for is that, when I do start talking about the issues, that I’m able to focus on them one at a time.”

Notoriousl­y thin- skinned, Vallas also tried to explain away the close ties he developed with now- convicted education consultant Gary Solomon.

Solomon worked with Vallas at schools in Philadelph­ia and New Orleans. In Chicago, he’s better known for mastermind­ing a contract kickback scheme with then- Schools CEO Barbara Byrd- Bennett. Both Solomon and Byrd-Bennett are now in prison.

“Gary was the vice president for Princeton Review, one of the largest education service firms in the country. They did business with hundreds of superinten­dents,” Vallas said.

“I’m not the one who gave Gary Solomon a $ 20 million, no- bid contract.”

At City Hall, Vallas earned the nickname “Dr. Yes” for his propensity to say “yes”’ to virtually every request, then find the money to pay for it after the fact.

The reputation followed him to Philadelph­ia, where Vallas left “significan­t deficits that were never revealed before,” said former Philadelph­ia Mayor Michael Nutter, a City Council member during Vallas’ tenure there who took over as mayor after he left.

“He never saw a dollar that he wasn’t willing to spend three times with three different people,” Nutter said Tuesday.

“He over- spent and over- promised with regards to school constructi­on, programs and activities. It was spend, spend spend. And it ultimately caught up with him.”

During the Sun- Times interview, therewere plenty of “no’s” from Dr. Yes.

“No” to Emanuel’s plan to build a high- speed rail line between downtown and O’Hare Airport. “It’s more P. R. than reality,” and there are “a lot of other infrastruc­ture needs.”

“No” to $ 175 million in infrastruc­ture improvemen­ts for the Obama Presidenti­al Center in Jackson Park, although a “reasonable” level of support is needed.

“No” to Emanuel’s “cruel” phase- out of the 55 percent city subsidy for retiree health care without a replacemen­t plan in place.

“No” to civilian police review that gives an elected board the power to establish police policy and fire the police superinten­dent.

And “hell, no” to a $ 2.25 billion incentive package to lure an Amazon’s second headquarte­rs to Chicago.

“There’s what I call the mini- Amazons out there. There’s existing businesses or potential businesses that could have located in the city with those type of incentives,” he said.

 ?? RICH HEIN/ SUN- TIMES ?? Paul Vallas says Mayor Rahm Emanuel’s failure to push a ‘‘ pension equity bill’’ while Gov. Pat Quinn was in office will cost taxpayers an additional $ 1.5 billion.
RICH HEIN/ SUN- TIMES Paul Vallas says Mayor Rahm Emanuel’s failure to push a ‘‘ pension equity bill’’ while Gov. Pat Quinn was in office will cost taxpayers an additional $ 1.5 billion.
 ??  ??
 ?? SUN- TIMES FILES ?? Paul Vallas served as former Mayor Richard M. Daley’s revenue director and budget director before becoming Chicago Public Schools CEO.
SUN- TIMES FILES Paul Vallas served as former Mayor Richard M. Daley’s revenue director and budget director before becoming Chicago Public Schools CEO.
 ?? SUN- TIMES FILES ?? Gary Solomon, who worked with Paul Vallas at schools in Philadelph­ia and New Orleans, was convicted of mastermind­ing a contract kickback scheme with former CPS CEO Barbara Byrd- Bennett.
SUN- TIMES FILES Gary Solomon, who worked with Paul Vallas at schools in Philadelph­ia and New Orleans, was convicted of mastermind­ing a contract kickback scheme with former CPS CEO Barbara Byrd- Bennett.

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