The Orland High School District 230 board has joined a coalition of other Cook County school boards in approving a resolution demanding its share of delayed distributions of Cook County property tax revenues.
The late payments cost the district about $1.3 million in revenue and extra costs, which has jeopardized the district’s ability to make payroll, said Jeff Eagan, assistant superintendent of business services.
Eagan said the late tax payments forced the district to borrow millions of dollars, which cost interest and fees, and caused the district to lose substantial interest income.
Eagan said the district received some payments in December and January, but 9% of the 2024 tax levy remains unpaid.
These property tax payments, which school districts usually expect over the summer, were halted this year due to a rocky technology upgrade involving Tyler Technologies.
Eagan said three three major costs associated with the late payments caused the district to lose $1.3 million.
He said the payment delays decreased the district’s interest revenue because it had to call investments in early and decreased the interest the district earned on property tax distributions.
The district demanded in the resolution that property taxes be collected and distributed on a predictable schedule and that Cook County seek reimbursement from Tyler Technologies for expenses caused by the late payments.
In the resolution, board members expressed their “profound disappointment and frustration” that this administrative failure resulted in a “direct and unnecessary financial cost to the taxpayers.”
The resolution was sent to the Cook County treasurer, president, assessor, clerk, Board of Review and County Board, as well as all members of the Illinois General Assembly.
Superintendent Robert Nolting said a majority of Cook County school districts signed off on the resolution, according to communication channels discussing the resolution.
Eagan said the coalition of school boards are also working with a law firm that he said is suited to pursue this kind of class action. He said he is confident that if a settlement or financial payment were to be made to the districts, District 230 would get its fair share.
Eagan said other district officials in the coalition have tried to talk with Cook County representatives.
“It’s not necessarily just the treasurer, but it is all Cook County officials that are responsible for this kind of fiasco that’s going on,” he said.
He also said results from the resolution will not likely happen soon.
Yet Eagan expressed some hope. He said District 230 received its first automated payment last week, which he said was a good sign because prior payments had been manually sent due to technology issues.
He said he is hopeful the district will receive the rest of its 2024 payments before receiving its 2025 payments, which are usually scheduled for the beginning of August.
“I’m hopeful we’re going to receive what we should,” Eagan said.
Cook County leaders announced in mid-February that spring property tax bills would go out when they are supposed to, and local government bodies would receive their revenue on time.
County leaders said first installment bills will be mailed out this year on March 2, and be due April 1, a month later than usual, to give taxpayers “breathing room.”
District 230 is made up of Sandburg High School in Orland Park, Andrew High School in Tinley Park and Stagg High School in Palos Hills.
awright@chicagotribune.com
