CHICAGO (WLS) — Concern is growing that Chicago teachers could be inching closer to a strike.

On Wednesday, the Chicago Teachers Union rejected an independent arbitrator’s report on settling contract negotiations

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“We had hoped it would be useful to help us reach an agreement; so, we are disappointed when CTU leadership unilaterally rejected less than a day after we received the report,” Chicago Public Schools CEO Pedro Martinez said.

The report released by fact-finder Martin Malin makes recommendations that are favorable to both sides, which is a surprise to CTU President Stacy Davis Gates

She said the fact-finding process was put into law in 2010 at the urging of former Mayor Rahm Emanuel. CTU claims the reports are always skewed favorably to CPS.

“It tries to make the collective bargaining process about money; however, this fact-finding report goes above and beyond that call,” Davis Gates said. “What it does is it provides us with some renewed optimism that we can begin to push Chicago Public Schools in a place of centering our students and what they need in this report.”

The 19-page report, conducted by a neutral fact-finder, sided with some of the union’s demands, including increasing pay for veteran teachers, upping the number of school librarians and hiring more family engagement coordinators.

For example, the report unveiled that 80 percent of Chicago Public Schools do not have a librarian, while only 10 percent of majority African American schools have one.

The fact-finder sided with the CTU on calling for an increase of 30 librarians each year, citing minimal impact to the CPS budget.

“The fact-finder has both exploded the myth that CPS can’t afford to put more resources into schools,” CTU Counsel Thad Goodchild said.

But, CPS said the neutral arbitrator sided with the district on most financial issues, including the 16% salary increase over four years. The district accuses CTU of misrepresenting the fact-finding report.

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“Nowhere in the report does the fact-finder suggest CPS has an abundance of money available to meet all of CTU demands,” CPS Chief Talent Officer Ben Felton said.

Facing a possible $700 million budget deficit next year, CPS says it cannot afford more than what is already on the table.

The CTU said the report only included recommendations for two of the 15 issues it submitted.

Bargaining continues while the fact-finding process calls for a 30-day cooling off period before CTU can strike. Despite their ongoing differences, both sides believe a deal can get done.

“There is nothing to justify a strike,” Martinez said.

While both sides are confident a strike won’t happen, if it eventually comes down to that, it puts Mayor Brandon Johnson in a prickly situation, since he is a former member and CTU ally, who continues to receive campaign contributions from the union.

“We need to get this done because we need a force field around this school district,” Davis Gates said.

The union says it’s preparing to expand the bargaining table to include parents and other community members by hosting townhalls.

Mila Koumpilova, a Chalkbeat reporter covering Chicago Public Schools, said the union’s somewhat hopeful tone could suggest momentum during negotiations in the days ahead.

“The union did strike a more optimistic tone last night and did seem to suggest the report even though they rejected its findings could give some momentum talks at the bargaining table,” Koumpilova said.

CPS and CTU had dueling press conferences Thursday afternoon to talk about the report.