CHICAGO (WBBM NEWSRADIO) -- The Chicago Public Schools' Inspector General has issued a report showing what happens when CPS doles out millions of dollars without putting things in writing.
The OIG said CPS dropped the ball in giving out millions of dollars to school bus companies to retain drivers during the early weeks of the pandemic.
A CPS inspector general investigation found that CPS gave 14 school bus companies nearly $30 million as “good faith” payments in the spring of 2020. The idea was that the bus companies would continue to pay their drivers and be ready to work should schools reopen; but the inspector general found CPS did not put that in writing and bus companies pocketed the money and laid off hundreds of drivers and aides.
Additionally, nine of those companies then applied for and received a total of $13 million in federal Paycheck Protection Program loans. Between CPS good-faith payments and PPP, these nine vendors received two different sources of taxpayer funds intended to help cover their payrolls.
The OIG added that eight of those nine vendors laid off bus drivers and aides for varying lengths of time, likely entitling those workers to an extra $600 a week in unemployment benefits under another Covid-related enhancement. If those workers received unemployment benefits — as some bus vendors reported — then three different sources of taxpayer funds were issued to help cover bus vendor wages.
Following the IG audit, the bus companies agreed to repay CPS roughly $3 million. In addition, two bus companies issued, in total, about $710,000 in back pay following OIG and CPS payroll inquiries.
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