CPS seeks to increase short‑term borrowing to $1.65 billion as Cook County tax delays continue
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Summary
District treasurer told the board CPS is seeking authorization to increase tax anticipation notes to $1.65 billion to cover cash‑flow gaps caused by delayed Cook County property tax distributions; staff estimated interest costs and outlined repayment timing tied to tax receipts.
Wally Stock, the district treasurer and acting CFO, told the board on Jan. 14 that continued delays in Cook County property tax distributions are forcing Chicago Public Schools to request an increase in authorized tax anticipation notes (TANs). The board previously authorized $1.25 billion; staff recommended adding $400 million to raise the cap to $1.65 billion to maintain liquidity.
Stock explained that property tax revenues for fiscal 2026 have been delayed and that the additional short‑term borrowing would sustain payroll, accounts payable and operations until taxes arrive. He estimated carrying the additional $400 million for roughly 60 days at current interest levels would cost the district on the order of $6.6 million, noting the district has paid tens of millions over recent years because of recurring tax delays.
Board members pressed for details about timing from Cook County and the costs of repeated short‑term borrowing; Stock said anticipated tax bills may be due in April and that staff are in frequent contact with county officials. Members asked whether the county could help offset interest costs; Stock said the district is pursuing information and would continue to press county partners.
The item was presented for consideration at the Jan. 29 regular meeting. Stock emphasized the request reflects a liquidity management step, not a policy shift, and said the TANs would be repaid when property tax receipts are received.
