$727M Paid Out Annually to Cook County Retirees

Cook County Board of Commissioners Meeting -  October 26, 2016

Significant Decisions Made:

• Amendment to the Cook County Amusement tax added disc jockey performances as an exemption to the tax of 3% of sales—passed.
• County contracts that are sole source or extensions of an existing contract need to give notice to the Board 15 days before concurrence.  Letter from Procurement  Department needs to explain why the contract is extended or sole source.
• County Minimum Wage Ordinance passed to yearly raise the minimum wage for all businesses  Cook County from the current $8.25 to $13.00 per hour by 2020.
• Safe Disposal of Pharmaceuticals Procedure Ordinance using sheriff locations, MWRD locations and pharmacy locations for free drop-off of unused and old drugs passed after 8 months of negotiations and collaboration among the parties affected.
• A  social media gang task force is to be created to investigate and develop a recommended strategy for reduction in violence instigated on social media platforms.
• A report from the Cook County Heroin Task Force was accepted with instruction to implement its findings.

Topics provoking discussion:

• Pension underfunding (55%), lower than expected investment returns, low ratio of employee contributors compared to retirees getting pensions—1.3 employees to 1 retiree—are among factors causing a $400 million shortfall. $727 million in pensions paid out annually.  At this rate the pension fund will go insolvent by 2041.
• Rules  governing how meetings (Board and committees) are run have been a hot topic for a few months.  Issues about consent calendar length, testimony times, and speaker decorum are still to be worked out.  Agenda Items 16-4645 and 16-4708 relating to these issues are in the Rules and Administration Committee.
• A Cook County Taxation Predictability Amendment (Agenda Item 16-5739) was deferred to November.  This would freeze additional property and sales taxes at the county level for 3 years after any increase.  It was agreed to delay this vote until the time the proposed sweetened beverage tax (sugar sales tax) is presented. 
• Public Hearing on monetary bond in the criminal court system was moved to the Criminal Justice Committee.  The hearing will examine the fairness of bond costs to indigent defendants.  Slated for November 17.

Items of Interest:

• Commissioner Daley stated the Board has “gone way overboard on suspending the rules.”  He indicated the Board and committees need to slow down and give time for public input and discussion among commissioners.
• Comptroller stated that Special Purpose Funds have more revenue than expenses.  The state of Illinois owes Cook County $34 million this year.
• Health and Hospital System (HHS) CFO stated that cost overages are driven by overtime, particularly in the nursing area.  County Care membership is down and is currently at 149,000 members.  $400,000 was spent on marketing mainly to encourage County Care sign-ups and use of HHS facilities—social media was particularly effective.

Observer - Karin Hribar