Teachers unions sue Cook County treasurer over school tax distributions

CHICAGO (WLS) -- Two teachers unions have filed a lawsuit against Cook County Treasurer Maria Pappas, alleging she is not distributing millions of dollars in taxpayer funds to schools and that students are being harmed as a result.

The Chicago Teachers Union and the Illinois Federation of Teachers are seeking a court order requiring Pappas to issue late tax bills and distribute funds to school districts. The unions contend that money collected through property taxes is not reaching schools in a timely manner.

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Schools are primarily funded through property tax revenue. The Cook County treasurer's Office mails tax bills, collects payments and distributes funds to taxing bodies.

Steve Yokich, an attorney representing CTU and IFT, said the treasurer has a legal obligation to distribute the money.

"It's really important for the treasurer to do her job under the statute. People have already paid their money. They're entitled to get what they pay their money for, which is education for their families," Yokich said.

According to CTU, Pappas is withholding up to $400 million in tax receipts from Chicago Public Schools.

SEE ALSO: CPS says delayed Cook County tax collections increase borrowing costs as budget gap persists

In a written statement, Pappas responded: "No comment on the pending litigation. We have given the Chicago Board of Education more than $4.5 billion. These attacks are par for the course. It's election season."

Civic Federation President Joe Ferguson said the amount in question may be significantly lower because property tax collection rates have declined amid rising tax bills.

"What the treasurer's office position is, no. In fact, we have only been collecting at a 93% rate. The difference brings that $400 million all the way down to $70 to 80 million. That's a pretty big swing," Ferguson said.

The treasurer's office said CPS is likely to receive the $70 million to $80 million this week.

Meanwhile, the Chicago Board of Education is expected to vote on a budget Thursday. The proposed budget does not include teacher furloughs and instead relies on additional tax-increment financing, or TIF, funding from the city.

"The bigger the TIF assumption, the riskier things are," Ferguson said.

Despite the elimination of furloughs from the proposal, CTU President Stacy Davis Gates said the union remains dissatisfied with the budget. The district has said that if a budget is not approved this week, employees will not get paid next month.