Category: Pensions

Cook County Board Holds First Ever Mid-Year Budget Hearings

7/27/2018

Cook County Board Finance Committee - July 23, 2018
Mid-Year Budget Hearings

The Finance Committee held Mid-Year Budget Hearings in connection with the Preliminary Budget Forecast for fiscal year 2019, Item 18-4447, beginning on July 23 to meet with all areas of County government. This is the first time such a process has been conducted. During the opening public comment period, the League of Women Voters of Cook County commended the Committee, noting that during last year’s meetings on the 2018 budget, a number of ideas to reduce costs were proposed, but there was not enough time to explore these ideas in order for them to be implemented during 2018. The League expressed its hope that having these mid-year hearings would allow time for any such ideas to be put forward and properly considered for the 2019 budget. The League also

Said it looked forward to the follow-up from last year’s ideas, such as the court utilization study and the report from the Chief Information Officer on opportunities to consolidate and centralize information technology
Urged that the Commissioners do all they can to see that on-going Shakman court-ordered oversight be concluded in the offices of the County, Assessor, Recorder of Deeds, and Clerk of the Court

Highlights from the hearings:

Chief Financial Officer Ammar Rizki and Budget Director Tanya Anthony
- Recapped the 2018 $5.2 billion budget
- Provided the preliminary 2018 year-end projections that there would be a $600,000 surplus in the total Operating Funds
- Presented the 2019 preliminary budget forecast which has a projected $81.8 million deficit; the Budget Department will be working with all the departments to close that gap, which is the smallest projected deficit over the past 9 years
- Departments have been asked to submit proposed 2019 budgets no greater than 2% over 2018
Comm. Gainer and Morrison both questioned the proposal to decrease the County’s supplemental (over and above the statutory limit) contribution to the pension funds in 2019. The Pension Board has asked for less, but Comm. Morrison in particular asked whether it would not be better to keep the payment at the same level which would either allow full funding to be achieved sooner or make up for any future reduced payments necessitated by a fall in sales tax receipts (the source of these supplemental payments).
County Clerk David Orr expressed his disappointment that his office’s proposal to purchase new voting equipment was not on the agenda for the Board meeting on July 25. He said that the office wanted to purchase this equipment as soon as possible to allow sufficient testing prior to its use during the 2020 primary and general elections. Clerk Orr stated that the vendor selected had the best equipment and lowest bid, along with a good reputation.
Representatives of Sheriff Dart said that the reduction in the jail population has resulted in reduced overtime costs, and the Sheriff expects to have $100,000 less in expenditures than budgeted for 2018. Labor costs for 2019 will exceed 2018 by $10 million due to Board approved labor contracts, but the Sheriff will look to reduce the impact through less overtime, streamlining the records division, and delaying hiring.
Comm. Deere asked the Sheriff to consider whether his area could partner with the Probation Department (under the Chief Judge) in such a way that both costs and recidivism could be reduced.

Priscilla Mims, observer

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Unanimous Approval by Cook County Board for Union Contract with Sheriff's Employees

1/26/2018

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Cook County Board of Commissioners Meetings - January 17, 2018

Meeting Length: Board Meeting 1.5 hours
Board Committee Meetings embedded within, and preceding from 9:15 ending at 3:15pm
Commissioners Absent: Butler
Significant Decisions Made:
Board Meeting:

Velisha Haddox of Human Resources announced a labor agreement with the majority of Cook County Sheriff employees’ union. It involves a 2% increase in pay in the first two years with no increases in later years and a larger co-pay for healthcare by the employees.
The Sheriff has not signed the agreement - his representative said management’s issue was over absenteeism, not over the economics of the union agreement.
All the commissioners commended Velisha Haddox on a good job negotiating the contract and the agreement was approved unanimously, as their vote was purely on the economics of the contract.

Significant Topics Discussed

Finance Committee:

Meeting with the Cook County Assessor was deferred as he did not attend.
The Cook County Health and Hospital System (CCHHS) presented the methodology for accounts receivables collection. Although there were $426 million in receivables for 2017, the real amount that is collectable is closer to $90 million. There are 315 people in the Receivables department and 15 in Payables. Commissioner Deere asked if they sent collectables out to a third party agency. Commissioner Gainer suggested that CCHHS needed to be careful choosing the right collection agency to not over-squeeze the people who couldn’t pay.

Business and Economic Development Committee:

Mike Jasso, Chief of Economic Development Bureau is currently completely revising the tax incentive rules for Cook County so there will no longer be a need in the future for the Board to vote on exceptions, waivers and amendments for tax incentives.
Cook County needs uniform tax incentives to compete with the surrounding four lower cost counties.
Agenda Item Item 1799-77 suspends affidavits for two years while the county does a complete upgrade on tax incentives. Industrial properties still must pay the Cook County living wage, but they need not submit the paperwork each year to prove it. Retail and commercial spaces are not required to pay the living wage.

Homeland Security Committee:

Com. Schneider presiding, will have the Court Utilization Study completed by May 2018. There are 333 courtrooms in Cook County but there has been a 48.9% decline in usage, with Civil hearings down 34%, criminal hearings down, 57%. Downsizing must occur in a rational, informed manner.
There is a new Chief of Cook County Homeland Security, Bill Barnes. This office and its operation appears well-funded by Federal grant monies for training, Narcan purchases, and personnel.
Commissioners Suffredin and Sims want to make sure there is sufficient coordination with local agencies including the Forest Preserve, municipalities, and the Sheriff.

Other Observations: There were two public speakers in addition to George Blakemore.

Mark Armstrong of the Fine Arts Council spoke about the need for easier to understand budget to present to citizens so they could better critique it.
Val Zimnicki, Director of Outreach for Taxpayers United spoke at the Finance Committee about the need to reform Cook County pensions to address the $1.7Billion pension deficit for 22,000 Cook County workers, and stated that 80% of Cook County tax bills go to sustaining pensions. He suggested one change in policy could be a switch to 401K programs for new hires at Cook County.

Observer – Amy Little

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$727M Paid Out Annually to Cook County Retirees

10/27/2016

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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

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Cook County Board Holds First Ever Mid-Year Budget Hearings

Unanimous Approval by Cook County Board for Union Contract with Sheriff's Employees

$727M Paid Out Annually to Cook County Retirees

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