Departmental Budget Hearings Underway on $5.9Billion Cook County Budget

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:

1. Criminal Justice
2. Health
3. Economic Vitality
4. Environmental Justice
5. Public Infrastructure and Assets 
6. 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