Category: Taxes

Cook County Board Recognizes 100th Anniversary of LWV and Proposes 3% Retail Tax on Cannabis Sales

1/20/2020

Cook County Board of Commissioners
Committee and Consent Agenda Meetings
January 15, 2020

During the Consent Agenda Meeting the Board honored the League of Women Voters in recognition of its 100th anniversary on February 14, 2020. President Preckwinkle and Commissioners noted the many suggestions from the League over the years to improve the operations and transparency of the government, as well as the presence of League observers at most Cook County Board and Committee meetings.

The following actions by the Committees are subject to Board approval at the January 16 Board meeting:

With the advent of legal sales and possession of cannabis in Illinois as of January 1,
- The Finance Committee passed a 3% retailer’s sales tax on gross receipts of sales of recreational cannabis. Sales of cannabis for medicinal purposes are excluded. Tax (which is on top of the normal sales tax) to be effective July 1, 2020. Commissioner Suffredin noted that, based on the experience in other states that have legalized cannabis, the County can expect an increase in emergency room visits and in having to deal with more driving while under the influence cases, adding costs to the County’s health and public safety functions. Thus, the 3% tax is more than justified. Because the State collects the tax and then remits to the County, the County does not expect to receive any revenues until September or October. Item 20-0658.
- The Legislation and Intergovernmental Relations Committee passed a proposal to create a Cook County Cannabis Commission to analyze the impact of recreational and medicinal cannabis industries within unincorporated Cook County. Commissioner Lowry will be the chair. Item 20-0763.
The Health & Hospitals Committee passed a resolution for:
- (1) the Chair of the Independent Cook County Health (CCH) Board to meet with the Cook County President and Board to solicit input regarding the responsibilities, background, and attributes to consider with respect to recruiting and appointing a new CCH Chief Executive Officer, which will be done at a public meeting in the Board room within 30 days;
- (2) the Cook County Board to have “listening sessions” at several locations around the County so that the public can provide input;
- (3) the Cook County Auditor, with the assistance from professional auditing firms experienced in health care, to conduct a management audit of CCH; and
- (4) such audit to be completed by July 1, 2020, so that its recommendations can be considered for the 2021 budget. Item 20-0789.
The Business and Economic Development Committee passed a Substitute Amendment to the Real Estate Tax Incentive Program to waive the relatively new requirement that business receiving the incentive file annual affidavits of compliance. Previously, the requirement was that such affidavits be filed every 3 years. With the change, there had been a marked decrease in new businesses seeking the incentive. The waiver is in place until 2022. Several people spoke in support during public comments. Item 20-0768.
This Committee also passed a resolution supporting a review of the small business and entrepreneur ecosystem in Cook County by an independent expert. Item 20-0678

Observer - Priscilla Mims

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Cook County Board Business Conducted At Lightening Speed After 2 Hour Retirement Ceremony

12/20/2019

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Cook County Board of Commissioners Meeting
December 19, 2019

The Board devoted the first 2 hours of their meeting to the honoring of retiring employee Martha Martinez, former Commissioner Jerry Butler, and the late Reverend Clay Evans. Testimonials lauded Martinez for thirty-four years of exemplary service. Former Commissioner Jerry Butler received a touching tribute from the Board. HIs career as a popular vocal artist and member of the Rock and Roll Hall of Fame was noted. Commissioner Butler sang one of his hits, “Let It Be Me” to the delight of all present. The late Reverend Clay Evans was honored as an icon of the black community and for his work on civil rights with Dr. Martin Luther King.

Action Items:

Agenda Item 20-0016- The proposed amendment to the Inspector General ordinance regarding reports and public statements was referred to the legislative committee. It requires that the IG share a statement with the head of the affected department and not issue a public statement for ten days. If the department has a response, this must be attached to the public statement. The Civic Federation supported this amendment during the public comment period.
Agenda Item 20-0735- The Board unanimously passed a resolution supporting federal universal background checks for firearms. It is hoped that this will add pressure for passage of gun control legislation in Washington.
Agenda Item 20-0721- The Board unanimously passed a resolution to support refugee resettlement efforts in Cook County. Several agencies testified to the challenge of working under current punitive federal policy.
Agenda Item 20-0437- Approved an intergovernmental agreement between the pension fund and Cook County. In 2016 the pension was 54% funded. $306.2 million will be contributed for 2020. This infusion of funds has now raised the percentage funded to 68%, one of the highest in the state.
Agenda Item 20-0732 - Changes in committee chairmanships were approved. These new assignments will give greater responsibility to the newer members of the Board.
Agenda Item 20-0658 - Proposed tax on cannabis was referred to the finance committee.
Agenda Item 20-1831- Board approved a commission chaired by Britton to create a new design for the county flag. The deadline is 2021 when the county celebrates its 190th anniversary. High school students will be asked to submit designs in a competition.
Agenda Item 20-0726 - Board approved a resolution to support Cook County Health’s construction of a new Provident Hospital. It also provides for the Cook County Board Health & Hospital Committee to hold a hearing to receive an update on the project.
Agenda Item 20-0712 - Board approved a resolution to discuss the Cook County Health Formulary Program. The resolution describes how insurance companies use “step therapy” in an effort to control drug costs. Step therapy is when patients first try the less costly drugs to see if they work. This can delay patients getting the treatment they need.
Agenda Item 20-0011 - Proposed ordinance regarding zoning for recreational cannabis was referred to committee.
Agenda Item 20-0579- Board approved authority for Public Defender to accept $500,000 grant to aid data analytics.

Commissioners Daley, Deer, Suffredin, Arroyo, Sylvestri, Gainer and Moore thanked Dr. Shannon (CCH) for his service to Cook County Health. Dr. Shannon was present and acknowledged their kind words.

Observer - Georgia Gebhardt Meeting Length: 3 hours, 20 minutes (includes 40 minute lunch break)

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No Expected New Taxes or Fees Projected for 2020 Cook County Budget

7/26/2019

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Mid-Year Budget Hearings of the Finance Committee of the Cook County Board
July 17 and 24, 2019

Over these 2 days, the Finance Committee (composed of all 17 members of the Board and chaired by John Daley) met with each elected official, bureau chief and major department head to go over the expected revenues and expenses at the end of the 2019 budget year (Nov. 30, 2019), and what was expected for 2020.

Highlights from these meetings:

Overall: It is expected that the County will end this fiscal year in the black, and no new taxes or fees will be needed to balance the budget for the upcoming 2020 fiscal year.

Projections are that the General Fund will have a $14.9 million net favorable. Currently, there is a projected deficit of $103 million in the Health Fund; however, Cook County Health has a plan to eliminate that deficit by the end of this fiscal year.
Looking to the 2020 fiscal year, the current projections of revenues and expenses would result in a gap of $11.9 million for the General Fund and $6.8 million for the Health Fund, or a $18.7 million deficit. Very small compared to past years.
Over the next several months, the Budget Department will be working with all areas to eliminate that deficit and produce a balanced budget from the President, as required by law.

Cook County Health (CCH):

Commissioners had many questions for CCH representatives. Message was that CCH needs to do a much better job of providing information to Commissioners, who stated that they want to help CCH, but cannot do so without accurate information. A separate hearing is being held on July 25 with CCH representatives, and they were told to provide clear and accurate information.
Plan to eliminate 2019 projected deficit of $103 million involves receiving funds from Medicaid to provide graduate training ($77.3 million in revenues) and not filling some positions ($26 million in reduced expenses).
CCH providing health services for more uninsured patients than in past several years; about 45% of the patients; Medicaid enrollment down across Cook County; State has been slow to process applications, but seeing an uptick.
Long-standing issue of CCH not getting full reimbursements from insurance companies for those patients who are insured continues; continuing issue of not coding properly. More and better information wanted by Commissioners.
Commissioner Moore had questions about providers of County Care (the Medicaid HMO run by CCH) not being paid because those providers not coding properly according to CCH.

Chief Judge: Asked to respond to Chicago Supt. of Police’s claim that too many people are being arrested for violent crimes and being released on electronic monitoring, Chief Judge Timothy Evans provided these statistics:

In the 15 months since judges began using the new assessment tool:
37,233 people have come before the court
30,466 have been released
only 70 have been subsequently accused of violating the order of release (less than .2%)

Sheriff: Questions raised as to why, with significant reduction in daily jail population (from 11,000/d a few years ago to 5,600 to 5,900/d now) there hasn’t been more cost reductions in Sheriff’s budget for the jail.

State’s Attorney:

SA Kimberly Fox stressed that office using data to make decisions on staffing and prioritizing work. Top priority are cases involving violent crimes, which are up 1% this year. Convictions for crimes involving guns up 9% this year.
Now available on www.cookcountystatesattorney.org/dashboard is information regarding number of felony cases initiated, disposed of, and sentencing results, which you can get by year and by Commissioner district, along with other information. This is updated every day.
Highest number of potential felony crimes by far is retail theft. Largely because threshold for felony is $300 in Illinois, much lower than surrounding states. To keep focus and resources on violent crimes, most of these lower value retail theft cases are instead being dealt with as misdemeanors.
SA Fox said that 770,000 prior convictions in Illinois for cannabis usage may be eligible for expungement under new law; 72% of these in Cook County. Not sure how to staff to take care of this.

Public Defender: While will not exceed budget for 2019, PD Amy Campanelli said that will be pushing for more money than President’s Office wants for 2020, in part to start an immigration unit with 4 new staff members. These would represent those charged with crimes (whom they are representing anyway in State courts in Cook County) at Federal immigration detention hearings. Cites statistic that have a 90% chance of no detention if have a lawyer and 90% chance of detention if do not. Would not work past detention hearing, but leave to pro bono immigration attorneys to handle the rest of Federal cases.

County Clerk (elections):

More registered voters in Cook County than ever before.
New voting equipment tried in 3 townships in April local elections was very well received. Will be used throughout suburban Cook County in 2020 primary and general elections.
Assured Commissioners that confident that election security in place.
In change from past practice, Clerk’s office will not allow people on ballot who do not have the requisite number of petition signatures. Previously, allowed people on ballot unless someone successfully challenged.

County Clerk and Recorder merger in December 2020:

Working groups formed to deal with various issues that have to be addressed.
After merger, Clerk expects to be able to provide recorder services at 2 satellite locations closed by utilizing existing Clerk’s personnel through cross-training.
Both Clerk and Recorder said they understood the need for Recorder’s office to come into substantial compliance under Shakman cases prior to merger.

Observer: Priscilla Mims

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Departmental Budget Hearings Underway on $5.9Billion Cook County Budget

10/27/2018

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Cook County Board of Commissioners Finance Committee - Departmental Budget Hearings
October 22, 2018

Bureau of Finance - Budget Overview
Office of the President
Office of the Independent Inspector General

Commissioners present at least most of the time: Moody, Daley, Schneider, Suffredin, Boykin, Deer, Arroyo, Moore, Fritchey, Gainer.

Overview of the Budget - Ammar Rizki, CFO, and Tanya Anthony, Budget Director:

Budget is at $5.9 Billion and the $81.2 million deficit was closed by “structural changes.” There is a 3% increase in the operating budget with a 32% increase in Cook County Health (CCH) due to increased enrollment in County Care. About $500 million in uncompensated care accounts for much of this increase. CCH receives a $102 million subsidy from the County. A .3% increase in FTE positions is mostly in Health area (CCH)—about 246 employees. CCH anticipates balanced budgets for the next 3 years.
An increase in sales tax revenues is anticipated ($52 million more than 2018) due to the good economy. The prediction is for a mild recession in 2020. Cigarette, Clerk of the Court Office, Treasurer, and Sheriff revenue is down. Supplemental funding toward pensions for County workers in the past few years has saved this liability. The plan is to achieve 100% funding by 2047 if the county stays on track in making more supplemental payments.
Comm. Suffredin asked the Budget Dept. to consider charging municipalities a percentage for collecting their property taxes. This would be a big hit for municipalities. He also mentioned that the property tax levy for the County has stayed the same for many years. He seems to suggest that these two areas are possible revenue sources in the future.
Comm. Boykin noted there are currently 725 vacant positions in the general fund plus the vacancies in CCH. He asked about property tax rebates for poor homeowners and tax holidays. Comm. Schneider asked whether positions vacant for 12 months or more are really needed.
There is a new Policy Road Map which encompasses the following categories:

Criminal Justice
Health
Economic Vitality
Environmental Justice
Public Infrastructure and Assets
Operational Stewardship (efficiency and cost effectiveness)

Comm. Daley several times reminded the other Commissioners to submit questions in writing that are not answered at the meeting. The answers will then be posted on the website.

Office of the President - Lanetta Hayes Turner, Chief of Staff:

This office encompasses only 5% of the County’s budget. FTEs have increased by 24 since last year.
The county has reduced debt by 11% since 2011; and reduced land holdings by sale, lease or demolition.
In technology, the ERP (operations) and BUS (criminal justice) systems are well under way and being used by many departments. This observer could not get exact numbers on this. Key performance indicators are being stressed, so it appears that some form of performance management is being used.
In the area of improved services, the county is formally checking its 5,000 rental units and mentoring minority and women businesses to be able to get county contracts.
Comm. Fritchey questioned the need for new positions in the President’s office and increases in personnel services, Veterans departments.
Animal Control was a topic commented on by several commissioners—high kill rates, surplus budget of $7 million, opening new shelters, and doing more in this office for animals and their owners.

Office of the Independent Inspector General - Pat Blanchard, Independent Inspector General (IIG):

This office has investigated corruption, waste, misconduct, monitoring contracts, etc. The office received 394 complaints and issued 50 reports just this year covering tax evasion, improvements in Cook County Health and Hospitals System (CCHHS) billing, political hiring and firing, etc. with many recommendations.
The budget is about $2,200,000 with 16 FTEs. The budget has been cut a lot over the past years.
The cost savings for the County is very high because of this office’s work.
Discussion centered around the possibility of the IIG entering into an Intergovernmental Agreement with the Metropolitan Water Reclamation District (MWRD) for his services. A draft agreement has been written which would cover 2-3 years as an intergovernmental agreement if approved by the Boards of both entities. Two employees plus hourly charges would be charged to MWRD. Some commissioners looked to this agreement as a template for other municipalities and governments to subcontract IIG services and guidance.
Comm. Suffredin expressed concern about the confidentiality of the IIG reports and has submitted an ordinance penalizing those who leak the confidential information contained in the reports..

Observer - Karin Hribar

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Cook County Treasurer Demonstrates Value of Technology and Offers to Show Others

11/2/2017

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Cook County Board of Commissioners Finance Committee - Departmental Budget Hearings
October 30, 2017 (afternoon sessions that started at 1 pm)

Recorder of Deeds
Treasurer
Commissioners absent for all or most of the meetings: Arroyo, Butler, Fritchey (watching from home), Goslin, Moody
Commissioners present: Boykin, Daley, Deer, Gainer, Garcia, Moore (arrived 1:50), Morrison, Schneider, Silvestri, Sims, Suffredin (arrived 2:55), Tobolski (there for Treasurer)

Items of Interest:

Treasurer Maria Pappas provided the Commissioners with a BOOKLET full of information showing the value that has been realized by all the automation projects in her office since 1998 when she was first elected Treasurer:
- Improved services
- Fewer employees
- Reduced Costs
In addition, the booklet contains comparisons of 1998 to 2018 of
- Salaries of grades 11 thru 23 after the “cost of living adjustments (COLAs)” given by the County to employees. The increase has been 116%. P. 73.
- The list of the percentage COLAs actually given. P. 74
- The value of fringe benefits: $7,955 in 1998 and $22,198 in 2018, a 179% increase in the average cost. (The average salary in her department for 2018 is $67,000 in response to a question by Comm. Schneider.) The majority of the 2018 benefit costs are for medical (excluding dental) of $12, 526 and for pension of $7,578.
The Treasurer was making the point that salaries and benefits for Cook County employees have gone up tremendously over the years, which the County Board has approved through its votes. However, there was no information as to how employees in other governmental entities or in the private sector compare or how the COLAs compare to the increase in the Consumer Price Index.
- Comm. Morrison stated that his office has calculated an average COLA of 3% each year since 2000, while the growth in average household income for that period was 2.2%. His office calculates that if the County had held salary growth to the average nationwide, it would have saved the County $1.22 billion.
- Another point the Treasurer made was that by 2022, if salaries and benefits continue to rise as they have, her office, which currently provides the County more revenues than it costs, will no longer have such a surplus.
Treasurer Pappas also discussed the negatives to the County and property owners resulting from moving the sales of property for unpaid taxes (the “tax sale”) from 13 months after the taxes became past due to 9 months. The County loses $6 million each month, or $36 million per the Treasurer. The Treasurer highlighted how many of the tax sales are because of unpaid taxes of less than $1,000. The Treasurer has done a lot of outreach to notify property owners of the impending sale, and, in 2017 the number of tax sales was the lowest since the automation of the sale 10 years ago. Comm. Boykin is working on creating a loan program for these property owners who owe so little so they can avoid having their property sold.
Treasurer Pappas said that her office was going to start holding seminars every two weeks for other departments to learn how that office has utilized technology to achieve such positive results.

Both the Treasurer and the Recorder have more than met the request for a 10% cut (or equivalent through an increase in revenues).
Upon questioning by Comm. Boykin, Recorder Karen Yarbrough stated that she did not feel merging her human resources (4 employees) or information technology (5 employees) with those of the County would result in much of a savings.
Recorder Yarbrough said that she and Clerk Orr have thus far had only 1 meeting about the merger of the Recorder of Deeds and the County Clerk offices in 2020, but sees no reason why the merger should not be smooth, and she expects that most of it will in effect be done prior to the 2020 date. However, she questions whether the projected savings of $1 million/year will be realized.
As a result of a complaint prior to Recorder Yarbrough being elected in 2012, the office is under court oversight to come into compliance with the Shakman case, which prohibits either favoritism or penalties for political reasons. The Recorder said she hopes the office will be found in compliance, and out from under court oversight, in 2018.

Observer - Priscilla Mims

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Assessor and Board of Review State that Tax Bills May be Late if Cuts Made to their Budgets

10/31/2017

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Cook County Board of Commissioners Finance Committee - Departmental Budget Hearings
October 27, 2017

Assessor
Board of Review
Board of Commissioners

Commissioners absent for all or most of the meetings: Butler, Goslin, Moody (arrived 12:15), Moore. Fritchey was not in the room, but sent a message he was watching from home as he had a doctor’s appointment about a hip replacement.
Commissioners present: Arroyo, Boykin, Daley, Deer, Gainer, Garcia, Morrison, Silvestri, Sims, Suffredin, Tobolski

Items of Interest:

President Preckwinkle appointed the Civic Consulting Alliance this summer to review the assessment process after Chicago Tribune articles alleging a deeply flawed process which led to significant disparities that particularly hurt those in less affluent areas. More faulty assessments lead to more appeals.
Assessor Berrios said he had no idea when the review of the process would be completed. When asked if this would be prior to the March primary, he said that he could not tell the Alliance when it should complete the review. Apparently, he did not ask about the timetable in order to be prepared to answer the questions about the review. He did say he was fully cooperating with the review.
The League had sent Commissioners a list of information to be obtained from the Assessor and Board of Review, including number of appeals, number of appeals granted, reasons for successful appeals, and what steps are being taken to correct reasons for incorrect assessments. Chairman Daley said that he has asked the Assessor and Board of Review to provide this information, which should be posted on the County web site. The League will watch to see what is posted and when.
Assessor Joseph Berrios provided a response to reach the requested 10% cut to the proposed budget to help fill the $200 million hole resulting from the repeal of the sweetened beverage tax. The proposed cuts included eliminating 42 positions that are currently vacant. However, the Budget Director said that the projected savings would be less than half because the turnover adjustment (a reduction in the proposed budget to account for the fact that the positions would not be filled for the full budget year) would not be as great. The Assessor said that he would go back and propose further cuts to reach the 10%. The Board of Review (Commissioners Michael Cabornargi, Dan Patlak, and Larry Rogers, Jr.) did not provide any information as to where cuts could be made.
Both the Assessor and the Board of Review stated that making any cuts to their budgets would likely result in the 2nd installment property tax bills going out late. The estimated costs to all the local taxing bodies in Cook County is $5 to $6 million in interest for each month tax payments are delayed as a result of late bills since many of these taxing bodies would have to take out loans to keep functioning while they wait for the tax revenues. This did occur during the many years the tax bills were delayed until 6 years ago when all the elected officials involved with the tax bills came together and worked out a better process, aided by technology. The concern is particularly great for 2018 because that is the year all the properties within the City of Chicago are reassessed (approximately 882,000) and the expectation is that there will be far more appeals.
The number of appeals continues to grow. Many of the Commissioners expressed gratitude for all the outreach to the public both entities do, but this outreach undoubtedly leads to more appeals.
During the meeting on the Commissioners’ own budgets, Commissioner Suffredin said that they need to treat themselves as they treat other departments with regard to cuts.

Observer - Priscilla Mims

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Cook County Board Recognizes 100th Anniversary of LWV and Proposes 3% Retail Tax on Cannabis Sales

Cook County Board Business Conducted At Lightening Speed After 2 Hour Retirement Ceremony

No Expected New Taxes or Fees Projected for 2020 Cook County Budget

Departmental Budget Hearings Underway on $5.9Billion Cook County Budget

Cook County Treasurer Demonstrates Value of Technology and Offers to Show Others

Assessor and Board of Review State that Tax Bills May be Late if Cuts Made to their Budgets

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