Caruso served as interim superintendent of the Chicago Public Schools district from December 13, 1979, until March 25, 1981.

Caruso stated that she was considering addressing the financial disarray of the school district by recommending great decreases in the number of employees and programs.

[3] In January 1980, Caruso proposed $60 million in cuts, which she conceded would force the school district to violate the terms of its contract with the Chicago Teachers Union.

Despite checks covering back pay being issued within days, at the start of February 1980, the work stoppage turned into a formal strike, when the members of the Chicago Teachers Union, by a 3-1 margin, voted to initiate what was the Chicago Public Schools' fifth teacher's strike in eleven years.

The formal strike was in protest of the job and pay losses that were imposed by the $60.1 million spending cut plan of the district.

[8] In April 1980, the district was threatened by United States assistant attorney general for civil rights Drew S. Days III with a lawsuit unless the it negotiated a plan with the United States Department of Justice by the early summer related to desegregating its schools.

"[12] Caruso served on the boards of directors for the National PTA and the Midwest Boys Club.