Cook County Finance Committee Meetings on the Budget
October 24, 2022, 10 am to 12:30 pm

During the overview of the proposed 2023 budget by the Bureau of Finance and the presentation concerning the Offices under the President, Commissioners Daley, Degnen, Gainer, and Miller focused on the need for an independent evaluation of the programs being funded by the Equity Fund (funds from the County) and by the American Rescue Plan Act (ARPA funds from the Federal government).  The Commissioners suggested regular meetings (quarterly or every two months) to get status reports and to have opportunities for the public to weigh in.  The Commissioners noted that the $1 Billion in ARPA funds provides the County with an unprecedented opportunity to make lasting positive changes.  But the Commissioners said that there will  undoubtedly be ways to improve and the County needs to identify those sooner rather than later.  In that regard, Commissioner Degnen suggested there might be a possible budget amendment to add 1 to 2 FTEs to the County Auditor department.

Bureau of Finance/Budget Overview - Presented by Interim CFO Lawrence Wilson, Budget Director Annette Guzman, and Deputy CFO Dean Constantinou.

Overall budget is $8.75 B (including Capital and Grant funds)

• 7.8% increase over 2022, mainly due to federal funds
• $7.23 B of total is Operating Funds, with 78% of that for public health and safety
• While budget has grown by $5.21 B (a 10.6% compound annual growth) since 2014, the core services have grown by a compound annual growth rate since 2011, in line with revenues.  Much of the growth in the overall budget is due to the growth of CountyCare (the managed care program funded by Federal and State funds for Medicaid recipients).  
• Proposed FTEs (full-time equivalent employees) are 23,731, the highest level over the past 10 years.

The General Fund portion of the Overall budget of $1.97B is slightly less than 2022.  The projected increase in sales tax revenues partly offsets the transfer of Transportation Home Rule Taxes from the General Fund to a Special Purpose Fund and the transfer of Canabis Taxes to the Equity Special Purpose Fund.

• Sales Taxes now make up 55% of the General Fund, with the next highest source being Property Taxes at 15%.
• 54.5% of the General Fund goes to Public Safety, 32.2% for Fixed Charges and others, 10% for Finance and Administration, 3.6% for Property and Taxation, and 0.8% for Economic Development.
• Key Priorites for the General Fund are (1) to increase personnel to implement the Pre-Trial Fairness Act (effective Jan. 1, 2023), (2) contribute funds to the Land Bank, (3) support the delivery of property tax bills through technology and funding for the Property Tax Bridge Fund due to late 2nd installment bills in 2022, and (4) additional funding from the General Fund to the Equity Fund.

The Health Enterprise Fund portion of the Total Overall Budget is $3.99 B. a 3% increase over 2022. 

• County Care membership is projected to decline from over 425,000 to about 366,000 by the end of 2023 due to people having to re-qualify for Medicaid.

There are also Special Purpose Funds that make up the Overall Budget.  The presentation focused on 4 of these:

• The Equity Fund is proposed to utilize $74 M this year for Justice Advisory Council grants (violence prevention and returning residents) and Taskforce initiatives to reduce systemic barriers
• The Transportation Fund (new) of $237 M that will go toward Public Safety offices
• The Covid-19 Emergency Rental Assistance Fund, currently proposing $18 M, but additional grant money from the Federal government is expected so this could increase.  Since this fund started in 2021, $144 M has been distributed.
• ARPA, with the County now in Phase IV (implementation and monitoring) with Phase V (reporting and evaluation beginning in the summer of 2023).  Over $270M in community investments are slated for 2023.  A new platform to track all aspects of the program and fiscal management is being developed.

The County is doing long-term fiscal planning, and projections thru 2027 are that the General Fund revenues are expected to keep pace with expenses and that the Health Fund revenues will be just short of expenses.  

Under the County’s Fund Balance Policy, the County is using the amount in excess of 3 months of General Fund expenditures to assign $231 M to the Pension Stabilization Fund, Self-Insurance Fund Reserve, Cook County Health Reserve Fund, the Infrastructure and Equipment Fund, and the Equity Fund, along with $30 M to spend in 2023 in the General Fund.

The County is also starting to plan for how to determine what ARPA funded programs should continue after 2026 and how to fund them.

Offices under the President - Presented by the President’s Chief of Staff, Lanetta Haynes Turner
The Offices include the 

• Bureau of Asset Management (35% of the General Fund Budget attributed to the President)
• Bureau of Finance (18%)
• Bureau of Administration (14.6%)
• Bureau of Technology (13.7%)
• Bureau of Economic Development (7.3%)
• Bureau of Human Resources ( 5.5%)
• Office of the President (3.4%), County Auditor (1%), Human Rights & Ethics (0.8%), and Administrative Hearings (0.8%)

Much of the presentation repeated and expanded on information provided in the Budget Overview,and the Commissioners reiterated the need for independent review and oversight of the Equity and ARPA funds.  Ms. Turner also presented some highlights of the proposed spending under the different categories of the Policy Roadmap.  There were no questions on those projects, nor were there information or questions on the individual budgets or performance of the individual Offices.

Office of the Public Administrator - Presented by the Public Administrator Louis G. Apostol

• This office administrates estates when the decedent leaves no will or the named executors cannot serve.  The office is funded by the fees for administrating those estates, and not from tax revenue. 
  
• Through fees, interest, court costs, and funds for unknown heirs, the office has generated over $4.5 M in revenues with expenses of only $1.5 M in 2022.

Observer - Priscilla Mims

Cook County Board Committee Meetings
October 19, 2022
Note:  All items approved in Committee are expected to be passed at the Oct. 20 meeting by the Full Board concurring with the recommendations of the Committees.

Business & Economic Development Committee

• Approved a new property tax incentive for a new grocery store or retention of an existing grocery store in a location included in the Illinois Department of Public Health’s Illinois Food Deserts Annual Report.  The property owner receiving the incentive will be assessed at 10% of market value for 10 years, with an opportunity to renew once for an additional 10 years. (Item 22-5345)
• There were a number of public comments from municipalities and realtors applauding this proposal as a way to bring healthy food to areas that lack such options.
• Kudos were given to Commissioner Donna Miller by fellow Commissioners.

Finance Committee

• Approved a reduction in court adoption fees to $89, which is consistent with the corresponding fees in the surrounding counties, from $265.  Commissioner Suffredin explained the Presiding Judge Taylor had noticed that the number of adoptions in Cook County had fallen while the numbers in the other counties were rising.  The presumption is that Cook County’s higher fees is the cause.  Some other related fees were also reduced.  (Items 22-5510 and 22-5512)
• Approved a substitute resolution from Commissioner Miller for the “Cook County Justice40 Infrastructure Fund Initiative.”  The “Justice40 Initiative” is a whole-of-government intitiative to ensure that Federal agencies work with state and local communities to deliver at least 40% of the benefits from Federal investment in climate and clean energy to disadvantaged communities.  This resolution states that Cook County is committed to applying for federal monies under the Federal Infrastructure and Investment Jobs Act (IIJA) and Inflation Reduction Act (IRA), that the County shall adhere to the County’s Procurement Code with regard to equitable participation of minority and women business enterprises for any such IIJA or IRA grants received, and that the Budget Director shall report on IIJA or IRA grants received and on American Rescue Plan Act programs that incorporate Justice40 principles on a quarterly basis.  (Item 22-3910)

Technology & Innovation Committee

• The Committee met to hear reports from the Chief Information Officer Tom Lynch on the Major Technology Projects in the county and on the Integrated Automated Criminal Justice Systems Report, as well as from the County offices.  Generally, CIO Lynch was positive.  He also reported on the status of moving the remaining applications off of the main frame.  As he explained, there are fewer and fewer people who have the expertise to maintain these applications and the cost is high.  
• No one from the offices of the Board of Review or the State’s Attorney were at the meeting to provide the required reports, much to the irritation of the Commissioners.  As a result, the Committee deferred the item on the Major Projects Report to a later meeting when those offices would be present.  Comm. Degnen wants to know when the Board of Review will commit to moving from the main frame to the Integrated Property Tax System. (Item 22-5023)
• Comm. Daley asked whether the technology issues that helped cause the delay in the 2nd installment property tax bill this year would also impact next year’s 2nd installment.  The Assessor’s office stated that there should not be such a significant delay next year.
• Comm. Daley also inquired why no report had yet been produced on the number of criminal cases delayed and whether at the request of the State’s Attorney or defendant’s attorneys.  The Clerk of the Circuit Court’s office explained that while that information is available for each case by reading each file, there is no data coding to capture it and produce a report.  That office is currently working on the new Traffic Court applications, and will turn to adding the data codes that will allow future reports for the Commissioners.   

Emergency Management & Regional Security Committee

• Heard a presentation from the new Executive Director of the Cook County Emergency Management & Regional Security, Theodore (Ted) Berger, who had previously worked as the Deputy Director prior to taking other positions with the County.  
• Mr. Berger presented the organization chart (which has 2 key openings for the Chief Deputy Director and Deputy Director for Operations). 
• The Department assists municipalities with emergency situations; has built mutual aid capacity to loan equipment and materials so each municipality does not have to purchase them, and provides expertise and helps secure grants to benefit all of Cook County.

Observer:  Priscilla Mims

Cook County Board: Health & Hospital Committee Meeting
October 18, 2022

The following reports were received and filed:  

• Alternative Health Intervention & Response: 
  • This report is the result of Commissioner Degnen’s resolution that last year focused on establishing for suburban Cook County  a mobile crisis team to respond to mental health crisis with trained mental health specialist. 
  • Commissioner Degnen at the meeting noted that establishment of the team for this year will need to be delayed sometime in 2023. The task force activity working on this project are expanding usage of the 988-emergency number and facing issues with the workforce and hospital capacity for care.   
• Covid 19/ Contract Tracing Update: 
  • CCDPH expecting a surge of COVID 19 in Nov. Concern about low rates of vaccinations and will be working over next months to increase levels of vaccination.
• Cook County Health System Strategic Plan 
  • Review of Strategic plan generated questions regarding the changing of the Health System’s mission statement.  What was emphasized is that the team was committed to a shorter mission statement maintaining the wording "regardless of the ability to pay" and adding the word "access".  
• Cook County Health: Mental Health Services Quarterly Report
  • Reports from Health System’s Department of Behavioral Health & Psychiatry; Cermak Health Services; Juvenile Temporary Detention Center Health Services (JTDC); Cook Department of Public Health
  • A common theme with each of these agency reports is a marked increase in need for mental health services. Discussion focused on numbers of juveniles confined in their rooms which presenter while did not have data felt that few were being confined to their rooms. 
  • The Cook County Department of Public Health did report training of 145 suburban law enforcement over 3 months in usage of naloxone and have documented through this training were able to reverse 20 overdoses.
• Behavioral Services Quarterly Report: Office of Chief Judge
  • Instituted with ARPR monies a collaborative program focused on youth diversion from criminal justice system. 
  • Pilot program demonstrated of 135 youth with gun charges 79% completed the outlined treatment program with charges dropped. 
• Cook County State’s Attorney Office & Cook County Sheriff’s Office: Behavioral Health Services Report:
  • Both agencies reported on working to expand community mental health services. The State’s Attorney Office reported that there were significant lower number in the pool for diversion coupled with community agencies that they partner with facing backlog of referrals. 

Items to watch in the future:

• Capacity for the expansion of mental health services 

Observer:  Susan Avila

Cook County Board - Criminal Justice Committee Meeting
September 21, 2022
​
Big controversy over Cook County Court use of SCRAM devices
Lots of contradictory points  were made by justice groups, public defender office, and some Commissioners vs. the Chief Judge’s Office regarding the Court use of SCRAM ankle bracelets for DUI and other alcohol-related defendants.  These devices measure perspiration to determine if the offender has consumed alcohol.  The wearer is to avoid all alcohol consumption.
Points made by Jim Anderson, CFO of Chief Judge Office:

• the office is pleased with the results.  Rarely is their a failure to comply by defendants/offenders
• judges are the ones to order this device as a deterrent from incarceration 
• considered a diversion program and is combined with treatment programs
• court and other penalty fees are waived if using SCRAM device and avoiding alcohol
• all contracts with SCRAM are in compliance with state law and county ordinances
• demographics of defendants on SCRam - currently 123 defendants on SCRAM -  out of over 6,000 arrested for alcohol related crimes in 2020, about 120 were on SCRAM - 46% White, 18% Black, 29% Hispanic  (historical data) - SCRAM used more often in wealthier areas of Cook County

Three circumstances where SCRAM is used in the courts (judges trying to fix the problem)
    1.  condition of probation
    2.  in bond court as a condition of release
    3.  plea deal to avoid the charge of DUI being on the defendant’s record

Points made by justice groups and some commissioners:

• cost of the device is charged to the offender—may be prohibitive expense for some—county should pay 
• concern with how the contract for this device is awarded and that these companies make a profit
• may restrict offenders in their jobs, and may need to travel in county to have device checked
• if offender can’t pay the company seeks payment through a collection agency
• ”unfair” to the poor, minorities

This item 22-4709 (resolution to have a hearing on SCRAM devices) passed unanimously out of committee to go on to entire Board.

Cook County Board - Pension Committee
September 21, 2022

A steady depletion of assets in Retirement Funds for CC and FPD despite a great investment year (2021)

• Both the Cook County government and the Forest Preserve District had good returns on investment (17.15% for Cook County) last year—mostly private equity and private real estate 
• Cook County has been paying in more than required each year since 2016
• However, there will be an eventual depletion of assets because the program cannot generate enough investment income to keep paying the growing numbers of retirees (small gap now)
• for the FPD, assets will be depleted by 2044 and this will become “pay as you go” system unless changes are made to laws (large gap now)
• in the County, there are more retirees getting benefits than employees paying into the system
• Currently there is $14.2 billion in the Cook County pension fund and $240 million in the Forest Preserve Fund
• Pension Board and its employees have been working in-person since August, 2021 interfacing with the public and well as phone counseling.
• Commissioner Kevin Morrison concerned that transgender sex transformation operations are excluded from retiree benefits.  This will be addressed at the next Pension Board meeting in October.
• Some commissioners concerned about minority investment contracts (currently 39%)

This item 19-1313 (yearly report on Retirement assets and situation) was deferred to that it can be kept open for the future.

Observer:  Karin Hribar

COOK COUNTY BOARD OF COMMISSIONER’S MEETING
September 22, 2022

Board Action:
During new business, commissioners were asked to suspend the rules to take up fourteen [14] new items.  The rules call for new items to be deferred to committee for consideration if the item or items have been introduced less than 48 hours before the Board meeting.  Commissioner Gainer supported by Commission Sean Morrison noted that several of these items were not emergencies and were for expenditures totaling around $40 million dollars.  Commissioner Gainer noted that it seems to be circumventing the Board’s procedure for referring new items to committees.  Commissioner Morrison agreed and said that, in particular, items with an RFP process should go to committee.  Notwithstanding these objections, nine of the resolutions were passed and five were referred to committee.  

• One of above new items was Commission Gainer’s request for a full audit of the Cook County Court System’s secure remote continuous alcohol monitoring program {SCRAM] and an independent study of SCRAM’s efficacy and program alternations.   Referred to the Criminal Justice Committee #22-5619.  Note:  The Criminal Justice Committee held a hearing on September 20, 2022 on SCRAM and this motion is a follow-up.
• A review and analysis of the CC electronic monitoring systems commissioned by the Justice Advisory Council with assistance from CGL Companies and the Appleseed Center for Fair Courts was referred to the Criminal Justice Committee.   #22-5130
• Questions were raised about # #22-3772 and #22-5335 for Electronic Monitoring contracts – one with the Sheriff’s office and the other for the office of the Chief Judge.  Commissioners asked if the SCRAM program can be combined with EM for purposes of an RFP.  Staff answered they are considering the possibility for 2023 RFP’s.  Commissioners Anaya and Johnson voted against 3772 and 5335 without comment. 
• Budget transfer of ARPA funds for July and August 2022 were approved.  Commissioner Daley asked for assurance that the Financial Department is monitoring and confirming that ARPA funds are being spent appropriately and that the Board and the County are protected from liability.  Answer:  Yes.    #22-5010 and #22-5072
• Referred the CCH’s 2023-25 Strategic Plan and Financial Forecast to the HHS Committee #5151
• Accepted the CCH’s preliminary 2023 budget with no comment.  #22-5009

Approved a proposed ordinance amendment adding a new Sec. 2-282 (b)(6) which provides for the General Counsel for the Inspector General’s Office to become the interim IG when there is a vacancy #22-5511

No action was taken on the ordinance amendment that would limit public testimony to 60 min. #22-4697 or #22-3155 proposed changes to ethics rules to align them with the new IL law.
In addition, the Board approved the following items approved in prior Committee Meetings:
Finance Committee meeting of Sept. 21:

• Deferred in committee an intergovernmental agreement between Cook County and the Forest Preserve to cover services to be provided and paid for in calendar year 2023.  #22-5507
• Approved the elected Official Compensation Review Ordinance requiring the Human Resources Department to present to the Board an independent compensation study for the County’s elected positions every four years, beginning in 2024, with any Board action to be taken by the following March.  #22-3931
• Approved as substituted a request for the Finance Committee to meet and discuss potential opportunities to address access to capital challenges for small business in Cook County including veterans and disability provisions.  Look for an announcement next week regarding these opportunities.  #22-4706

Legislation & Intergovernmental Relations Committee meeting of Sept. 21:

• Approved ordinance amendments which provided for vacancies in the offices of Commissioners and Assessor, Clerk, Sheriff, and Treasurer to be filled initially by appointment by applicable township and ward committee persons of the same party, but in cases where the remaining term is more than 28 months, those positions will then be filled for the remaining term at the next general election.  At the Committee meeting sponsor Britton explained that the League of Women Voters had proposed the use of an election.  #22-4661 and #22-4662.
• Approved appointments of M. Lipinski to the Human Rights Commission and Dr. Jay D. Bhatt to the Cook County Health Board of Directors. The appointment of Sam A. Robinson, III, PhD was deferred in committee as he was unable to attend the meeting.
• Approved the search committee for replacing the Independent Inspector General (“IIG)”).  Patrick Blanchard, the current IIG, is expected to retire Oct. 14.  In the interim, the General Counsel will act as the Cook County Inspector General.  #22-4693 

Public Speakers included:

• The Bond Fund opposes the expansion of Electronic Monitoring after reading the report just released by the Justice Advisory Committee and also strongly supports the alternative to 911.   
• Jackson Park Hospital nurses asked for more resources and also supported the 911 alternative which would eliminate police presence from the response teams.
• Another speaker spoke to the problems defendants have that are on Electronic Monitoring.   
• County Interpreters asked for fair contracts and bilingual employees of the County asked for better pay.

Consent Agenda:   John Yonan, Bureau Chief of Asset Management and former Supt. Of Transportation and Highways received bountiful accolades from the Commissioners after his announced retirement this month.

Observer:  Diane Edmundson