Illinois taxpayers to pay $250M for Tyler Technologies Inc. contracts

A decade ago, prominent Illinois officials embarked on a mission to upgrade outdated and costly computer systems by signing contracts worth a quarter of a billion dollars with a Texas-based company, Tyler Technologies Inc. These endeavors aimed to improve services ranging from property records and tax bill delivery to seamless case reading and filing systems in county courts. Despite initial price tags of $75 million and projected completion timelines of three to five years, these projects have spiraled out of control, surpassing $250 million in costs, and experiencing considerable delays and operational deficiencies.

The Cook County property records project, initiated in 2015 with an intended finish by December 2019, is only gearing up for launch in April 2025 after numerous setbacks. Consecutive years of delays compelled the county to invest millions more in maintaining outdated systems while awaiting the new technology’s arrival. Governance of these projects fell short in various aspects – the flawed property revamp contract spurred early lump sum payments without repercussions for poor performance, the circuit court project faced blame on court staff for uncooperativeness and lack of training, and the Supreme Court’s tenfold expansion of its contract raised concerns over deficient independent oversight.

Throughout the implementation process, allegations surfaced regarding software glitches, botched rollouts, and accusations of incompetence levied at Tyler Technologies. While officials pointed fingers at the company, Tyler reciprocated by highlighting government shortcomings. The investigation found instances where Cook County contemplated terminating Tyler’s property tax contract due to unsatisfactory progress. Despite officials threatening legal action and expressing criticism, the county chose to persist with Tyler, fearing prolonged schedules and escalated costs if they switched contractors.

David Orr, a former Cook County clerk and current senior policy adviser, underscores the urgency for accountability and efficiency in government operations, especially in the wake of ballooning costs and necessary interventions to oversee lagging projects. To date, $185 million has been funneled to Tyler for the three contracts – well exceeding initial budget projections. In addition, Cook County allocated significant funds to external consultants to oversee Tyler’s operations and maintain their outdated mainframe systems, while the promised replacements are still pending.

Amidst the technical endeavors, political entanglements surfaced, shedding light on campaign contributions preceding Tyler’s business dealings in Illinois, criminal investigations involving government officials, and hires of Tyler executives in key supervisory roles. This unveiling of intricate ties between political and high-tech domains underscores the intricate web surrounding public-sector projects, emphasizing the need for transparency and vigilance in managing such ventures.