December 18, 2013
CHICAGO — Chicago Public Schools (CPS) CEO Barbara Byrd-Bennett announced today that the District’s headquarters will move next year to a smaller location at 1 N. Dearborn, a move that will save CPS an estimated $60 million over the next 15 years. The anticipated move-in date is November 2014.
"While the District continues to call for meaningful pension reform to help address our $1 billion budget deficit, we are also working diligently to central office spending by consolidating resources and directing more funds to the classroom," said CPS Chief Operating Officer Tom Tyrell. "Relocating our central office will save CPS nearly $60.3 million over 15 years and we will use that savings to support student learning in the classroom."
This move is the latest in a series of steps taken by CPS to reduce central office spending and direct more dollars to the classroom. CPS has already cut $52 million in non-classroom spending from its FY 2014 budget and reduced its central office and centrally-funded programs by nearly $600 million since 2011.
CPS will lease three floors at 1 N. Dearborn, totaling approximately 160,000 square-feet of office space. That’s nearly one-third the size of 125 S. Clark Street and, despite the smaller size, the Board of Education chambers are double the size of the District’s current location, giving the public greater access to meeting and events.
Following a competitive bid process for brokerage services in April 2013, the District awarded a contract to Cushman & Wakefield; resulting in 140 buildings being surveyed, 12 toured, 10 requests for proposals and three finalists.
In addition to this relocation, CPS has continued to identify other cost-saving measures including:
- $6 million from renegotiated healthcare contracts with vendors for the equivalent services;
- $2.1 million from a migration to Google mail, calendar and applications;
- $2.1 million from reduced IT infrastructure supports costs via renegotiated contracts and insourced consulting positions;
- $2 million from renegotiated office supply contracts;
- $2 million in-sourced or eliminated consultants and contractors supporting systems operations activities;
- $1 million from a reduction in external legal counsel, managing more caseload and legal work using in-house expertise;
- $1 million from a new waste management contract that shifts the contract costs structure from a lump sum fee to a per-unit or volume-based fee that will better accommodate fluctuations in facilities and offer increased transparency on actual costs for service;
- $500,000 from the implementation of an easy-to-use purchasing system for schools that will drive the use of low-cost vendors through comparison shopping; and
- $200,000 from reductions in non-personnel costs in the communications office and new fundraising partnerships for back-to-school projects. The local funds that had been previously for back-to-school efforts have been redirected to classrooms.
- Eliminating 100 positions at the Central Office.