CPS seeks authorization to expand short-term borrowing to $1.65 billion as Cook County delays tax bills
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Summary
Acting CFO Wally Stock asked the board to amend prior authorization and increase educational tax anticipation notes to $1.65 billion to cover cash-flow shortfalls from delayed Cook County property tax bills; board members pressed him on projected interest costs and county timing.
Wally Stock, acting chief financial officer and district treasurer, told the agenda review committee on Jan. 14 that Cook County’s delayed property tax bills have created cash-flow pressure for Chicago Public Schools and asked the board to amend a prior resolution to increase the authorized amount of educational-purpose tax anticipation notes from $1.25 billion to $1.65 billion.
Stock explained that the district expects the first property tax bills for fiscal 2026 later in the year than normal and that short-term borrowing is the established mechanism to maintain liquidity until taxes are received. Using an illustrative example, Stock estimated an approximate 4% interest rate and suggested that $400 million outstanding for 60 days would cost about $6.6 million in interest.
Board members asked for more details about expected timing from Cook County and pressed Stock about the cumulative fiscal cost of prior delays. Stock said property-tax timing has been disrupted for several years and that the district has paid roughly $70 million in borrowing-related costs over prior years caused by these delays.
The committee engaged in discussion but did not vote to change the board resolution at this meeting; the presentation framed the proposed amendment that staff will bring forward for action.
