Chicago Board of Education President Sean Harden pulled a proposed property tax hike from the school board’s agenda last week that, if passed, would have netted the district roughly $25 million.
Each year, Chicago Public Schools has consistently raised its property tax levy to the maximum allowable amount. In August, the board passed a budget with a levy of more than $4.24 billion.
But a later assessment found that amount was slightly below the legal limit, sources told the Tribune. The resolution, which would have been up for a vote at a board meeting last Thursday, captured that remaining $25 million in revenue. The sources asked not to be identified, citing concerns of professional reprisal.
Harden’s maneuver came amid the City Council’s high-stakes budget battle — and Mayor Brandon Johnson’s push to frame himself as a defender against rising taxes. Harden was handpicked by Johnson last year to helm the hybrid school board.
But Harden told the Tribune Monday the decision to withdraw the resolution was tied to “outstanding questions” from board members, and unrelated to Johnson or the City Council’s budget fight.
“It reflected a need to understand more about the levy itself,” Harden said. “We all take the fiscal part of our jobs very seriously. There are no rubber stamps.”
While a $25 million bump is a fraction of CPS’ total revenue, it would still be a boost for the cash-strapped district. In theory, the board could still call a special meeting to vote on the levy increase later this month.
State law requires CPS to finalize its property tax levy by the last Tuesday in December, which this year is Dec. 29. If the hike is not implemented, it would be the first time since 2009 that the district doesn’t seek the legal limit.
That has long-term implications, because tax increases are cumulative: Forgoing the hike now reduces the baseline during future budget seasons.
In August, CPS closed a $729 million budget deficit, in part through layoffs of central office staff, custodial workers and crossing guards. Multiple school services also took a hit, such as the district’s after-school meal program. CPS still owes billions in long-term debt.
Through it all, Johnson, Harden and board members have advocated for additional CPS funding from the city and state. This year, the district’s budget banks on $522 million from tax increment financing districts, after Johnson proposed a record-breaking $1 billion surplus.
But property taxes are by far the district’s largest source of revenue. The board’s budget in August included a 2.9% raise to the property tax levy, up $232.5 million from the year prior.
Meanwhile, Johnson and his progressive allies have cast the city’s budget fight as a tug-of-war between the ultrawealthy and low-income residents. The mayor framed his corporate head tax — which was voted down in committee — as a way to ease the financial pressures on the working class.
A surprise property tax hike perhaps runs counter to that messaging. It underscores a growing tension: While the transition to an elected school board was championed by progressives, at times, it has emerged as a challenge to Johnson’s authority. A fully elected board will be seated by 2027.
An alternative budget supported by a bloc of council moderates passed Saturday in a historic revolt, but could still be vetoed by the mayor. The city must finalize its 2026 budget by Dec. 31.
The median property bill for Chicago homeowners jumped 16.7% this year, with some South and West Side neighborhoods seeing the largest increases. The school district makes up the largest portion of Chicagoans’ bills.
CPS’ ability to raise property taxes is governed by the Property Tax Extension Limitation Law. To protect residents, the annual increase is capped at the lower of either 5% or the rate of inflation.
