Republican leaders are exploring a plan for a state takeover of Chicago public schools that would cancel the union contracts. This article in Crain’s Chicago Business Report has greater detail than previous linked headline. 

“The Republican leaders of the Illinois House and Senate are stepping into the financial crisis at Chicago Public Schools, and it sounds like they’re proposing a solution that City Hall will not like.
“In a press conference scheduled for Wednesday morning, Senate GOP Leader Christine Radogno and her House counterpart, Jim Durkin, will propose legislation that would allow the state to take control CPS and potentially push it into bankruptcy, according to knowledgeable sources.
“The latter move — forcing the school system to reorganize, and in the process dumping its union contracts — has been strongly pushed by Gov. Bruce Rauner, but resisted by Mayor Rahm Emanuel. But the Radogno-Durkin proposal comes at a very sensitive time for Emanuel. CPS has been pleading for state help to fill a $480-million budget hole even as Emanuel’s own power has been restricted by fallout from the Laquan McDonald police shooting.
“I’ve also confirmed that the bankruptcy clause would apply to the city itself, which has its own financial problems, and result in electing members of the Board of Education, who now are selected by the mayor. That measure could appeal to some, even some Springfield Democrats, who have grown disaffected with Emanuel’s leadership and handling of the school board.
“Specifically, I’m told, the package offered by the two top Republicans would extend to Chicago a measure authored by Sen. Heather Steans that allows the state to intervene in and effectively run troubled downstate and suburban districts. Such a move would be initiated by an independent review panel appointed by the State Board of Education.”