104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5478
 
Introduced 2/13/2026, by Rep. Mary Beth Canty
 
SYNOPSIS AS INTRODUCED:
 
30 ILCS 105/6z-149 new
35 ILCS 200/20-227 new
    Amends the State Finance Act. Provides that the State Comptroller, in coordination with the State Board of Education, shall establish and administer a program under which eligible school districts located in Cook County may receive interest-free loans from the State Treasury to address cash flow shortages caused by the delayed issuance of property tax bills by the Cook County Treasurer. Provides that a school district shall be eligible for a loan if the Cook County Treasurer fails to issue property tax bills by the statutory deadline under the Property Tax Code, the failure results in a delay in the receipt of property tax revenues, and the State Board of Education certifies that the district has experienced or will immediately experience a cash flow deficit as a result of the delay. Provides that the loans shall be limited to the amount necessary to maintain essential operations and shall bear no interest to the borrowing district. Provides that the term for a loan shall not exceed 12 months, and that the loan shall repaid in full upon receipt of delayed property tax revenues. Provides that the Cook County shall reimburse the State Treasury for the full amount of interest income lost by the State on any loan. Effective immediately.


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A BILL FOR
 
HB5478LRB104 19261 HLH 32707 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois, 
3represented in the General Assembly:
 
4    Section 5. The State Finance Act is amended by adding 
5Section 6z-149 as follows:
 
6    (30 ILCS 105/6z-149 new)
7    Sec. 6z-149. Cook County school district bridge loan 
8program.
9    (a) The State Comptroller, in coordination with the State 
10Board of Education, shall establish and administer a program 
11under which eligible school districts located within Cook 
12County may receive interest-free loans from the State Treasury 
13to address cash flow shortages caused by the delayed issuance 
14of property tax bills by the Cook County Treasurer.
15    (b) A school district shall be eligible for a loan under 
16this Section if: 
17        (1) the Cook County Treasurer fails to issue property 
18    tax bills by the statutory deadline under the Property Tax 
19    Code;
20        (2) the failure results in a delay in the receipt of 
21    property tax revenues; and
22        (3) the State Board of Education certifies that the 
23    district has experienced or will imminently experience a 
 
 
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1    cash flow deficit as a result of the delay. 
2    (c) Loans issued under this Section: 
3        (1) shall be limited to the amount necessary to 
4    maintain essential operations;
5        (2) shall bear no interest to the borrowing district;
6        (3) shall be repaid in full upon receipt of delayed 
7    property tax revenues; and
8        (4) shall not exceed a term of 12 months. 
9    (d) The Cook County Treasurer shall reimburse the State 
10Treasury for the full amount of interest income lost by the 
11State on any loan issued under this Section.
12    (e) The State Comptroller shall determine the interest 
13amount due under subsection (d) based on the average monthly 
14yield of State investment instruments during the term of the 
15loan.
16    (f) The State Board of Education may adopt rules to 
17implement this Section. 
 
18    Section 10. The Property Tax Code is amended by adding 
19Section 20-227 as follows:
 
20    (35 ILCS 200/20-227 new)
21    Sec. 20-227. Responsibility for State bridge loans.
22    (a) If the Cook County Treasurer fails to issue property 
23tax bills in accordance with this Code and a school district 
24receives a loan pursuant to Section 6z-149 of the State 
 
 
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1Finance Act as a result of that failure, the Cook County 
2Treasurer shall reimburse the State for: 
3        (1) interest lost by the State; and
4        (2) reasonable administrative costs incurred by the 
5    State in administering the loan. 
6    (b) Reimbursement required under this Section shall be 
7paid from funds available to the Office of the Cook County 
8Treasurer and may not be deducted from distributions owed to 
9any school district.
10    (c) If reimbursement is not made within 90 days after a 
11written demand by the Comptroller, the Comptroller may 
12withhold State payments otherwise payable to Cook County in an 
13amount necessary to satisfy the liability. 
 
14    Section 99. Effective date. This Act takes effect upon 
15becoming law.