After a four-month delay due to prolonged technical issues, Cook County Treasurer Maria Pappas’ office is taking “emergency steps” to distribute $2.3 billion in property tax revenue to local governments, she announced Friday.
Pappas blamed Texas-based Tyler Technologies, which contracted with Cook County to upgrade the county’s computer system but has run into problems preventing the distribution of more than $8 billion in property tax funds to local governments, including school districts, that rely on the revenue.
“That’s simply unacceptable,” Pappas said in a statement. “Local governments shouldn’t have to worry about their cash flow because a vendor after more than a decade of work has failed to deliver a working system.”
Tyler Technologies didn’t immediately respond to a request for comment.
The property tax revenue was supposed to be delivered to governments in August.
The delay has forced Chicago Public Schools to take out $1.6 billion in short-term loans for operating expenses, including paying staff and keeping the lights on, and another $246 million loan to keep its teachers pension fund solvent.
Every day that Chicago Public Schools goes without the long-delayed property tax revenue, the school district is paying $220,000 in interest on the short-term loans — the equivalent of two teachers’ annual salaries.
Pappas said it’s her “hope” that the remaining revenue can be sent to governments through Tyler Technologies, but she will “do whatever is necessary” to ensure they’re funded.
The technical problems also led to delays in distributing this year’s property tax bills to residents, which were sent in November instead of July, and in refunds to taxpayers, Pappas said.
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