Property tax bills usually sent out in July will once again be delayed, according to Cook County Board President Toni Preckwinkle.
Preckwinkle, who announced the two-month delay on Tuesday, said she intends to reopen a no-interest loan program for government bodies that rely on the property tax revenue they now won’t get on time.
Suburban tax districts, such as schools and libraries, that would otherwise need to take out pricey short-term loans to cover their budgets can instead borrow from the county’s $300 million Property Tax Bridge Fund Program, Preckwinkle said.
That program mirrors one put in place last year when tax bills were delayed four months due to a computer issue.
Chicago Public Schools, however, would not be eligible for that loan program.
That could be a problem for CPS, which last year paid $220,000 in interest per day on short-term loans it took out to make payroll.
CPS officials said last year’s tax bill delay has forced them to take out at least $1.6 billion in short-term loans for operating expenses and another $246 million loan to keep its teachers pension fund solvent — making for $33 million in interest payments down the line.
CPS didn’t immediately respond to a request for comment.
The loan program is needed, Preckwinle said, because tax bill delays can cost different bodies massive amounts of money, specifically when they take out short-term loans. Preckwinkle said more details would come out next month when she anticipates the Cook County board will pass the measure.
“We are announcing this now because local governments need time to plan,” Preckwinkle said in a statement. “This bridge fund gives schools, libraries, parks, fire districts and other local governments a short-term tool to keep serving residents while we continue the deeper work of fixing a fragmented property tax system.”
Preckwinkle pointed to the delay as further need for tax reform in a year that has seen some modifications to tax laws, including legislative changes to property tax sales.
But the delay last year was just the tip of the iceberg.
Over the last 30 years, the property tax levy outpaced inflation and grew “well above wage growth,” according to a recent report from the Cook County Treasurer’s office. The county’s property tax levy increased from $6.8 billion in 1995 to $19.2 billion in 2024. That’s $10 billion more than if it had just kept pace with inflation.
Schools countywide, which account for about half of the total tax bill, also have seen tax demands skyrocket 189%, or $6.9 billion.
Some, including former Cook County Assessor James Houlihan, have called for an overhaul of the system on a much larger scale. He has suggested weaning public schools off the current funding method, in which they rely solely on property tax revenue.
