Palatine CCSD 15 leaders told the school board on Jan. 14 that repeated delays in Cook County property-tax distributions have forced the district to borrow to meet payroll and vendor obligations and have caused millions in added costs.

Superintendent Dr. Hines and finance staff said the district borrowed $25,000,000 to cover debt service and operating obligations during recent late distributions. Diana, the district finance lead, outlined direct costs tied to that borrowing — "the cost to the district on that $25,000,000 was $451,000" — and estimated roughly $1,000,000 in lost interest revenue tied to late fall collections. "Add those three numbers together and we are over $2,000,000 shy of where we should be," Diana said in presenting slide detail.

Board members and staff said bills for certain collections arrived about 4½ months late, a lag that exhausted usual reserves and required short-term borrowing. The superintendent said those delays have required issuing tax-objection warrants and other stopgap measures that divert staff time and incur additional expense.

District staff described steps already taken: coordination with the grantees and local partners to keep critical services running while legal work proceeds on a withheld federal grant, direct outreach to Cook County offices and Maria Pappas’ office, and plans to press for reimbursement from Tyler Technologies, the vendor now associated with the county's distribution system. "They have to figure that out faster than they did," Diana said of Cook County and its vendor, adding the county said it would attempt distributions through Feb. 7 and that the district would monitor whether those payments make them "whole."

Board members asked about legal leverage and next steps; staff said they will pursue a resolution and provide community contact guidance so residents can press legislators and county officials. "We're prepared to engage legal counsel and to bring this forward in an open session," Dr. Hines said.

The board considered a resolution asking Cook County to correct distribution practices and to seek recompense for districts harmed by the transition to the county's new software. The resolution was listed for consideration later in the meeting agenda.

If Cook County distributions remain delayed, district leaders said they may need to borrow again; if the county follows through on its announced distributions the district could repay some short-term borrowing sooner.

Next steps: staff will update the board as Cook County distributes funds and will finalize the proposed resolution for board action.