‘Perfect storm’ of bureaucracy blamed for Cook County’s long-delayed property tax system overhaul

The Cook County independent Inspector General’s Office issued a report Tuesday blaming bureaucratic shortcomings for a long-delayed overhaul of the county’s property tax recording and reporting system.

The report cited a “myriad of problems,” caused by all parties involved in the process, creating a “perfect storm” that has delayed implementation of the system that has been in the works since 2015.

Inspector General Tirrell Paxton’s report states the county’s “political structure inherently creates operational challenges and delays, particularly because key functions are divided among separately elected officials whose offices operate with significant autonomy.”

The project involves independently elected county offices, including the assessor, treasurer, clerk and board of review, as well as Cook County President Toni Preckwinkle’s office and the county bureau of technology.

But the report also blames the initial contractor, Texas-based Tyler Technologies — which went unnamed in the report — for poor communication and failing to correct problems identified by county offices. It also notes Tyler experienced “significant employee turnover at critical leadership positions” during the process, contributing to problems.

Paxton’s report suggests the county’s procurement office take a larger role in future contracts that involve multiple elected offices.

“Additionally, the county would have benefited from hiring a dedicated project manager at the outset to identify foreseeable risks, coordinate stakeholder expectations, and ensure that both internal and external responsibilities were clearly defined,” the report states.

The county has spent $63 million related to the project, according to the report. Tyler received nearly $30 million initially to deliver a modernized property tax system, enabling the county to move off its system that relied on outdated mainframe computers.

Another contractor was brought in to audit the county’s current system, data integrity and system performance in 2017. A third contractor was brought in to serve as project manager and provide quality assurance.

Despite the cost, tax bills still did not go out in time. This is problematic for a number of reasons, according to the report. It creates household budgeting uncertainties for taxpayers as well as delaying refunds. Local taxing districts aren’t paid on time and often have to borrow to cover operating costs, incurring interest fees.

“Repeated delays undermine confidence in the county’s ability to manage essential functions,” Paxton’s report reads.

Property tax bills were delayed again this year.

The report also recommends “sensitivity training” for officials and employees in Treasurer Maria Pappas’ office after the Inspector General’s Office “received statements” that “highly offensive, demeaning and racially charged” language aimed at contractors and county employees was used, which delayed the project.

Pappas responded to the accusations saying she’d accept the sensitivity training recommendations “on the condition that all county officials and employees also be required to undergo such training.”