Cook County Board President Toni Preckwinkle’s office distributed stopgap loans valued at $191 million to 32 suburban villages, library, and school districts. The initiative aimed to alleviate the financial strain caused by the property tax delay this fall. However, many agencies received less than requested. Despite this, several officials commended Preckwinkle’s efforts, and $109 million remained in the loan fund, according to records obtained by the Tribune.
Cook County originally excluded Chicago Public Schools (CPS) from the loan program, indicating that collaboration would occur if funds remained after suburban allocations. However, Preckwinkle’s administration announced that CPS will not access the unallocated $109 million. The school district had not applied, citing the amount as insufficient to address their financial gap.
Preckwinkle launched the property tax bridge loan program earlier this summer. This offered eligible suburban schools, libraries, and villages funds equivalent to two months of anticipated property tax revenue. She also notified taxing bodies of another tax bill delay.
Needed lifeline
Some applicants sought substantial amounts. School District 57 requested $20 million but received nearly $6 million. Skokie/Evanston School District 65 asked for $68.3 million and received just below $23 million. Berwyn city requested $13.5 million and received $5.6 million.
Many applicants made requests before the official tax bill mailing date due to concerns about delays. Several financially troubled south suburban local governments requested far more than they received. The City of Harvey sought $24 million but received around $1.7 million. Harvey had previously applied for ‘Financially Distressed City’ status but was denied.
Robbins village requested $350,000 and received $150,000. Dolton village applied for $9.5 million, receiving $1.85 million amid lawsuits concerning alleged financial mismanagement by former mayor Tiffany Henyard. Dolton also opted for a decade-long payment plan for a $33.5 million judgment.
Cook County Treasurer Maria Pappas’ office faced difficulties last year distributing funds due to contractor issues, leading to inconsistent payments and confusion among districts. This year, the treasurer expects payments to commence in October.
The distribution portal remains partially operational. Pappas’ office reports that 318 districts are awaiting accurate distribution reports, while Tyler Technologies works to revamp reporting systems.
New Trier Township High School District 203 received a $22 million loan from the program, originally requesting $40 million. The district anticipated cash-flow issues due to delayed property tax distributions.
West Northfield School District 31 received a crucial $3.3 million lifeline but noted a lack of communication from Pappas’ office regarding distribution timelines. School District 21 in Wheeling requested $34.2 million, receiving $18.9 million.
The loans arrived as property tax bills were delayed by one month, resulting in cash pinch conditions during the waiting period for districts’ revenue. Preckwinkle targeted districts with limited borrowing capability, offering interest-free loans with simplified applications.
Preckwinkle’s team worked to expand eligibility and provide technical guidance to encourage applications. Their efforts were aided by Preckwinkle’s commitment to improving the fragmented property tax system.
Help for CPS unlikely
Initially, Preckwinkle suggested leftover funds might aid CPS. However, as of September 1, discussions ceased. CPS had deemed the available funds inadequate for substantial support.
CPS has historically borrowed heavily for short-term costs amid tax delays, incurring significant interest expenses. The ongoing communications with the county have not resulted in access to low-interest loan programs that would adequately bridge funding gaps.
The Illinois Federation of Teachers criticized the county for sitting on potential funds while excluding Chicago from assistance. Affected districts faced borrowing to address financial gaps, compounded by negative outlooks from credit agencies due to prior delays.
S&P revised CPS debt outlook to ‘negative,’ citing funding reductions, increased operational spending, and declining enrollment. This revision ties partially to persistent structural budgetary issues.
IFT filed a lawsuit against Pappas’ office to expedite bill releases and recover costs for districts suffering from past delays. The Cook County State’s Attorney is pursuing a case extension and intends to file a motion to dismiss.
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