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Chico resigns school post in surprise move

By Michael Martinez <br>and Gary Washburn

After steering Mayor Richard Daley's reform of the city's public
schools for six years, Gery Chico resigned Thursday as president of
the Chicago Board of Education.

The surprising resignation comes amid a planned shakeup of city
schools, prompted by Daley's growing impatience with progress. Just
last week, sagging test scores gave the strongest indication yet that
six years of improvements in student performance were leveling off far
below national averages.

The resignation, effective June 30, raises questions about not only
who will succeed Chico -- an announcement that could come within a
week, Daley said -- but also what role schools chief Paul Vallas will
continue to play.

Vallas and Chico, the two most responsible for reform since the mayor
took control of the schools in 1995, often butted heads. In his
position, Chico was to oversee policy and serve as City Hall's check
on Vallas. But Vallas, in charge of day-to-day affairs, has pushed his
role to include broad policy initiatives, as well, often setting up
conflicts with Chico.

Chico and Vallas indicated they have felt stung by Daley's criticisms
this year. A month ago, Chico began pushing for a reorganization of
the system's top brass to heed Daley's call for "outside-the-box"
ideas and better reading scores.

Now, Chico himself becomes part of that reorganization.

At an afternoon news conference, Chico said he was voluntarily
resigning to spend more time with his three daughters -- now in 11th,
9th and 5th grades -- and with his law practice, where he is a
chairman and a lobbyist representing corporations and other clients
seeking contracts with City Hall.

His dual role as board president and as a lobbyist representing
clients that also won business with the schools sometimes created
controversy, and Chico abstained from more than 400 votes to avoid
conflicts of interest.

"Six years is actually a lengthy period of service in this position,"
Chico said. "Of the 80 prior presidents of this board, only three have
served longer continuously.

"This is a natural break point. You would like to leave when there is
sufficient time to find a successor, prepare that successor to go and
start the next school year as smoothly as possible."

Daley had announced Chico's resignation a few hours earlier at an
unrelated event.

"He has taken this upon himself," Daley said. "He has done a
tremendous job. Like anything else, he has a life too. He has given a
lot of time and energy away from his family and business. It is an
opportunity for other people to serve." 

Replacement search

Daley said he expects to name a replacement for Chico in "a week or
so." 

Speculation at City Hall centered on three candidates, including two
longtime Daley allies: Valerie Jarrett, who has served as deputy chief
of staff and planning commissioner under Daley and is chairwoman of
the Chicago Transit Authority; Gene Saffold, a Chicago school board
member who is director of public finance for the Salomon Smith Barney
investment firm; and Forrest Claypool, former chief of staff for Daley
and a past Park District general superintendent.

Administrators at the schools' central office predicted that Avis
LaVelle, vice president of the Chicago Board of Education, was the
likely replacement. But City Hall sources said she is not a candidate.


A mayoral aide said the requirements for the new school board chief
are clear: "Someone who has an established job and who has been in the
position long enough that they would have some freedom to be away from
their primary employment for big chunks of time. And someone who
doesn't represent many conflicts." 

School reform

Reforming the schools is a cornerstone to Daley's efforts to making
his city viable and attractive to middle class families who might
otherwise move to the suburbs for better schools.

In July 1995, Daley was given direct control over the city's public
schools under a state law, and using a corporate model, Daley
installed Chico as board chairman and Vallas as CEO. Chico and Vallas
caught the nation's attention by banning the social or automatic
promotion of students at certain grades. They have also raised $2.7
billion to build schools, annexes and additions.

Under reforms -- which included dramatic academic sanctions under the
new law -- the system's scores on the Iowa Tests of Basic Skills rose
steadily. In 1995, about one out of every four elementary and high
school students read at grade level; now it is about one out of every
three. In high school math, scores jumped from about 25 percent of
students working at grade level to 45 percent.

But this year's high school reading and elementary math scores
slipped, erasing two years of gains. Elementary reading scores,
however, rose for the sixth consecutive year.

Even before those scores came back, Daley was cracking the whip on his
schools team as improvements lagged. Chico reportedly was angry when
Daley last February publicly expressed dissatisfaction with the pace
of reading improvement. 

Resignation talk

The mayoral aide said Thursday that Chico brought up the possibility
of resigning earlier in the year, even before Daley's remarks. Whether
the mayor's criticism played a role in Thursday's announcement was not
known, the aide said.

Daley downplayed the tension between Chico and Vallas.

"There is always tension there," the mayor said. "Sometimes it is good
for people."

Said Chico: "People make a lot out of the tension between Paul Vallas
and myself, but quite frankly I enjoyed working with Paul, and I hope
we get a chance to work in some capacity again some day."

Vallas praised Chico but added, "In any relationship over 10 years,
there's going to be tension." Their first meeting was in 1991 when
Chico was mayoral chief of staff and Vallas was city revenue
department head.

An increasing source of controversy for Chico was his private legal
practice as a lobbyist, which he began after leaving City Hall as
Daley's chief of staff. Altheimer & Gray had 18 lobbying clients in
1995, the year before Chico joined the firm as chief of its government
operation. Chico became school board president in July 1995. By 2000,
his law firm had nearly 200 clients, making it the No. 1 lobbyist in
City Hall.

"I am proud of the way that I conducted myself ethically," Chico said.
"If you read the law and see what it requires and if you really study
what those abstentions consist of, you will understand that this was
not much of a conflict at all."

Pressure on mayor

Donald Moore, executive director of Designs for Change, a group that
advocates local control of schools, said the pressure is on Daley. 

"The focus should be on how the mayor is going to change course to
ensure the kids are going to learn how to read," Moore said.

Chico's departure led to speculation about the future of Vallas who,
like Chico, also has spent six years at the helm of the school
system.Asked if Vallas had done a good job, Daley said, "I think they
all have done a good job. Like anything else, we can do a better
job."

Asked if he wanted Vallas to stay, the mayor said, "Yes."

When it was suggested that was not a glowing endorsement, Daley
replied testily, "I am glowing. What do you want me to do, put a moon
face on?"

Chico's resignation came before Friday's announcement of election
results for the presidency of the Chicago Teachers Union, in which
school officials have privately expressed fear that incumbent, Thomas
Reece, could lose to challenger Deborah Lynch Walsh, an activist who
styles herself after the late CTU president Jacqueline Vaughn, who led
the last teacher strikes in the 1980s. During Daley's six-year
takeover of schools, there have been no teacher strikes.

 Tribune staff reporters Ray Quintanilla, Stephanie Banchero and
Teresa Puente contributed to this report.  


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