Internal memo: 'High risk' CPS Board in violation of state law over Acero plan
CHICAGO - Chicago Public Schools students, teachers and families were in a celebratory mood at a late February meeting when the new hybrid school board voted to keep five Acero Charter schools from closing.
But an internal memo obtained by FOX 32 Chicago reveals that the vote might have put those board members in legal jeopardy.
The memo, dated March 14, 2025, came from CPS General Counsel Ruchi Verma. In it, Verma lays out the potential financial and legal entanglements with the deal that allows CPS to absorb the five schools from the Acero Charter network.
"The Board should be advised that these terms present major risks from a financial, operational, liability, and health and safety perspective," the memo states.
The Acero deal calls for CPS to fund each school on a per-pupil basis and mentions that an increase in enrollment could lead to a violation of state law. That law states a public school system cannot fund a charter school at more than 103% of the school’s budget. The memo states that Acero did not agree to any funding caps in the event enrollment and costs go up, and concluded, "There is a very high risk that CPS will be required to cover costs that place the Board in violation of state law."
The memo also outlines the major financial hurdles the Acero deal creates. The five schools that were saved are housed in buildings owned by the Archdiocese of Chicago, some of which would require significant capital spending to maintain them.
"Not only will this likely exceed the charter funding threshold in state law, but it will result in CPS expending funds towards facilities for the benefit of the Archdiocese, without any long-term benefit for the district," the memo states.
Further, the memo states, "The agreement will open the Board up to broad liability for anything that happens at those sites, such as personal injury and other tort claims, capital costs, financial liabilities, and more."
Verma says the deal could be blocked if 10 or more board members decided to object.
Elected School Board Member Ellen Rosenfeld wrote a letter to her colleagues expressing "deep concern" over the Acero deal after reading the memo.
"The terms of this agreement appear to push the boundaries of legality, potentially violating CPS policies and public education regulations. Rather than benefiting the district as a whole, it disproportionately serves a select few. As stewards of public funds and the education system, we must ensure that every decision we make is not only ethical but also legally sound," Rosenfeld wrote, later telling FOX 32 Chicago she consulted with her own attorney over whether she was personally legally exposed.
Ellen Rosenfeld
The Board of Education approved the Acero deal after the Charter operator, one of the few that employs Chicago Teachers Union members, announced it would close seven of its campuses due to financial difficulties. After a furious grassroots campaign from students and activists to save them, an effort that was heavily backed by the CTU, the appointed school board voted to have CPS absorb all seven schools at a late December 2024 meeting, the same meeting in which they decided to terminate CPS CEO Pedro Martinez’ contract with six months' notice. The newly seated 21-member hybrid school board then came back and modified the agreement to include five of the seven schools.
"We have made a pledge to children and to families, and I feel we have an obligation to maintain that pledge," CTU organizer turned appointed school board member Debby Pope said at the time.
There is no indication that the board plans to go back on its plan. Rosenfeld says her colleagues should rethink that.
"Given these legal, ethical, and safety concerns, I strongly reject the execution of this agreement. The risks far outweigh any potential benefits, and I urge my fellow board members to reconsider moving forward with it," her email states.
FOX 32 reached out to Chicago Board of Education President Sean Harden for comment, but we've yet to hear back.