Chicago Public Schools Pulls Back on Property Tax Hike

Chicago Public Schools blinked on a small but symbolically charged property tax increase, as the city’s broader budget fight reached a boiling point.

Chicago Board of Education President Sean Harden quietly pulled a resolution last week that would have allowed CPS to squeeze an additional $25 million from property owners this year, backing away from a move the district has made annually for more than a decade, the Chicago Tribune reported. The measure was set for a vote at last week’s board meeting and would have pushed the district’s levy to the maximum allowed under state law.

Harden, a mayoral appointee tapped last year by Brandon Johnson to lead the hybrid, partially elected school board, said Monday the decision had nothing to do with City Hall politics. Instead, he told the outlet that the pullback stemmed from “outstanding questions” among board members about the levy itself.

Still, the timing was hard to miss. The maneuver landed squarely in the middle of Johnson’s high-stakes budget showdown with the City Council, where the mayor has cast himself as a bulwark against rising taxes — particularly on working-class homeowners.

While $25 million is a rounding error in CPS’ budget, the stakes stretch beyond this year. Property tax hikes are cumulative, meaning skipping the increase permanently lowers the district’s baseline. If CPS ultimately passes on the extra levy authority, it would mark the first time since 2009 that the district failed to raise taxes to the legal limit, according to the Tribune.

The district isn’t exactly flush. CPS closed a $729 million budget gap this summer through layoffs and service cuts and still carries billions in long-term debt. Its financial plan leans heavily on $522 million in tax increment financing revenue, boosted by Johnson’s push to declare a record $1 billion TIF surplus.

Property taxes remain CPS’ largest and most reliable revenue source. The August budget already baked in a 2.9 percent levy increase, or $232.5 million, from last year. Any further bump would have landed on homeowners already reeling from a 16.7 percent jump in median property tax bills across Chicago, according to the publication.

The board could still revive the proposal at a special meeting before the Dec. 29 deadline to finalize the levy.

— Eric Weilbacher