Chicago Public Schools has decided not to pursue a planned property tax increase, a move that signifies both financial caution and a response to the ongoing political dynamics within the city. Chicago Board of Education President Sean Harden has withdrawn a resolution that was slated to raise an additional $25 million from property owners this year, marking a departure from a strategy routinely employed by the district for over a decade. The resolution was originally set for a vote at last week’s board meeting and intended to push the district’s levy to the maximum limit permitted by state law.
Harden, appointed by Mayor Brandon Johnson to lead the hybrid school board, insists that the decision was not influenced by the current political climate. Instead, he cited “outstanding questions” among board members regarding the levy itself. However, the timing of the withdrawal coincides with the mayor’s high-stakes budget negotiations with the City Council, where Johnson has positioned himself as a protector against tax increases for working-class homeowners.
Though $25 million may seem minor within the broader financial scope of CPS, the implications of not raising property taxes are significant. Property tax increases are cumulative, which means that opting out this year would reduce the district’s baseline revenue for future years. If CPS refrains from exerting the additional levy authority, it will be the first time since 2009 that the district has not raised taxes to the legal maximum.
The current financial landscape for CPS is challenging, having addressed a substantial $729 million budget gap through layoffs and service cuts over the summer. The district also faces billions in long-term debt, relying heavily on $522 million from tax increment financing revenues, which have been bolstered by Johnson’s recent initiative to declare a record $1 billion TIF surplus.
Property taxes remain the most significant and consistent source of revenue for CPS, with an already planned 2.9 percent increase incorporated into the August budget, translating to $232.5 million compared to last year. Given the recent 16.7 percent spike in median property tax bills throughout Chicago, any further increases would place additional strain on homeowners.
There’s still a possibility for the board to reconsider the tax proposal at a special meeting before the December 29 deadline for finalizing the levy, leaving the door open for potential fiscal adjustments as the situation develops.