Cook County property tax delays hit Evanston, other schools

Cook County’s delayed property tax bills are straining school districts with nearly $122 million in unexpected, unneeded costs.

Cook County’s months-long property tax billing delay is straining suburban school districts that rely on timely tax distributions to fund day-to-day operations, tallying nearly $122 million in borrowing costs.

Cook County property tax bills were delayed by nearly four months, with county leaders blaming a 10-year-old contract with a Texas-based company called Tyler Technologies. The contract inked in 2015 was supposed to modernize the billing system within three to five years but has instead caused repeated disruptions.

The delay pushed back not only when homeowners had to pay, but when local governments and school districts receive the revenue.

In Evanston, School District 65 administrators said the delayed distribution has cost “approximately $1.14 million in real, avoidable taxpayer impact.” The county’s failure to deliver property tax revenue on time forced the district to borrow $15 million through tax anticipation warrants in November just to meet payroll and pay vendors.

Those short-term loans come with a whole host of additional costs. District 65 has reported $27,500 in issuance fees, nearly $153,000 in interest payments and about $962,000 in lost investment income because tax dollars were not available when expected.

About $46.3 million was sent to District 65, which was about 40% of the district’s anticipated tax revenue. It was not enough to restore normal cash flow.

District 65 leaders said they only have about two months of operating expenses on hand, with $15 million set aside to repay the warrants.

All told, Cook County school superintendents said the delays cost taxpayers nearly $122 million. Chicago Public Schools alone paid $62.2 million to borrow until the property taxes arrived.

The disruption comes as taxpayers face their own sticker shock. Illinois residents already pay the highest effective property tax rates in the nation. Cook County property tax bills have climbed 78% since 2007, even as median property values rose just 7.3%.

Cook County has discussed delaying the first installment of 2026 property taxes until at least April to give homeowners breathing room after the delayed tax bills. But for schools in District 65, that additional delay may require even more borrowing and extra costs for taxpayers.