First Day of Cook County Board Mid-Year Budget Hearings Opens with Good News of Budget Surplus for 2021

Cook County Board Finance Committee Mid-year Budget Hearings
July 19, 2021
Presentations by Offices under the President, Public Administrator, Assessor, Secretary to the Board, and Public Defender

Highlights from the Presentations
Overview:

• 2021 Forecast for General Fund:  Project $60 M of revenues over expenses for fiscal year ending November 30, 2021.  This means that much of the $77 M from the Fund Balance (i.e., reserves) used to balance the 2021 budget will be paid back this fiscal year.
• 2022 Forecast for General Fund:  Currently projecting $80.5 M higher revenues over 2021, but also $140.8 M in higher expenses, largely due to normal yearly increases in salaries.  Thus, currently the gap is $60.3 M which the President and all the officials and departments will be working on to close by the time the proposed 2022 budget is presented to the Board in October.  The County must have a balanced budget by law.
• Health Enterprise Fund:  The Health Fund covers both the “provider side” (which includes the Counties hospitals, clinics, and other costs incurred to provide service, whether patients are able to pay or not) and the “managed care plans” which are for Medicare or Medicaid patients, County Care.
• 2021 Forecast for Health Enterprise Fund:  Project $30.6 M of revenues over expenses.  Number of County Care enrollees greatly exceeds projected numbers, which brings both higher revenues and expenses.
• 2022 Forecast for Health Enterprise Fund:  Currently projecting $381.7 M higher revenues over 2021, but also $442.8 M in higher expenses.  That results in a gap of $61.1 M that will need to be closed prior to the proposed budget being submitted in October.
• Asked how increases in the budgets over the years compare to inflation, CFO Ammar Rizki said that the increases are in line with inflation, if you take out County Care.
• Mr. Rizki also stressed that the County looks for structural solutions to cover any gaps between income and expenses, rather than one-time fixes.  In line with that, Commissioners Sims and Daley stressed that the County needs to be careful about adding more positions in light of the large influx of federal funds, but which won’t be there after the next 2 years.

Public Administrator - Lou Apostol

• The office administers estates of those who die without a will - the past year have done 720 investigations with over 320 cases ongoing
• Stated that their office continued to operate throughout pandemic and intend to continue to use Zoom in the future for their investigations
• Vivian Meyer case is coming to a close after a several year process
• No questions from the commissioners

Assessor - Fritz Kaegi

• The office has undertaken 2 big challenges this year with the City of Chicago reassessments and also moving off the main frame system into an integrated property tax system with modern technology. The Tyler Technologies is the backbone of the system and the Assessor’s office is the first phase of conversion to this system.
• Once the assessments for the City of Chicago are done Assessor Kaegi will have completed the assessments for the entire county since he came into office.
• The new system provides the tools to help with accuracy in assessments. The office has hired staff that can utilize the new tools to maximize transparency and efficiency. 
• His office has been working with the other departments that also deal with the property tax system to get the system up and running.
• Outreach from the Assessors office was managed largely through partnership with the offices of the commissioners and Assessor Kaegi thanked them for that.
• They now have a system that makes it possible to make appointments with their office online.
• He did address the issue about the accuracy of Sr. Freeze Exemptions which has been an issue in the media. He stated that the exemptions were not in conformity with the current guidelines and the office is rectifying the problematic exemptions that were granted previously. 
• In 2019 after he took over the office he requested an audit of the office that was done and presented to the Board that had 23 recommendations for improvement to the office. So far 15 have been implemented despite the interruption of the pandemic. 
• Comm. Daley asked how opening the office would be done. Kaegi said that the office is open now, appointments can be made online and there is a call center in place for questions. 
• Comm. Gainer made the point that changes in the tax structure need to be done and there is a lot of misinformation circulating about the Land Bank and the Scavenger Sale which is actually restoring property to a tax paying status. Education about the system does help people understand how economic development is helping to restore properties to the tax rolls. Kaegi responded by saying that the property tax system is complicated and very confusing for everyone and his office is committed to being transparent about the process and putting out all the data on how the taxes are determined. They want to educate the public about the system. The public knows what goes wrong and his office is trying to fix the things they can address. 
• Comm. Miller asked about the status of the state legislation that would in part require owners to provide property descriptions to assist in the assessment process. Opponents prevented this from being implemented but he said they haven’t given up yet and are hoping it may still be approved by the House in the Veto Session. It was approved by the Senate in 2019.
• Comm. Aguilar asked about fines that are assessed for erroneous exemptions that are claimed. Mr. Kaegi stated that some individuals have been back billed for what they owe. He also stated that the state tax code outlines what fines are allowed and they are trying to integrate with other systems for information so that errors will be avoided. He is also working on a process that will automatically renew exemptions so they don’t have to be claimed every year.

Secretary to the Board - Matt Deleon

• The pandemic made it necessary for the Board to use technology so they could continue to meet and operate. Microsoft Teams has been used for meetings and this required that everyone learn to use the technology. 
• Since technology will most likely be necessary for any hybrid model for future meetings it will be necessary to constantly support and maintain the technology necessary which will have budget implications.  
• There was a $15,000 investment in equipment for the board room to allow for a hybrid model for future meetings. 
• During the pandemic the President and the Board have met often with the public and this will probably need to continue.
• In order to ensure transparency in meetings and communications with the public there will need to be investments in personnel for technical support and for communications. 
• Opening the Archives Office has been in process for a year now since a manager for the office was hired. They are now getting back into a physical presence in their office and utilizing storage space for the items they have been collecting.
• Have been to Jail (Division 1 and 1A are set for demolition soon) and to Oak Forest Hospital to collect items and information for the archives.
• 2031 will be the Cook County Bicentennial Celebration and Matt is hopeful that funds will be solicited to provide private support in addition to any public funds used for the celebration.
• Comm. Anaya asked about what was learned about public testimony during the pandemic. Matt stated that none of the online platforms really lend themselves to public meetings that allow for public participation. Their office has used Teams and utilized breakout rooms to hold public speakers until they were allowed into the meeting for comments. In the future a format will be needed. Matt cautioned against only going to online testimony as there will still need to be an in person option for those who do not have internet access. 

Public Defender - Sharone Mitchell Jr.

• Budget on target for this year
• Challenges for the year were 1. Access to the criminal courts 2. Reducing the Covid 19 risks for their clients 3. Safety measures for employees 
• Continued with their goal of providing police station representation to clients
• Expanded the mental health access for clients
• Immigration unit has been launched although there are still positions to fill and still working an authorization to represent clients in immigration courts
• 13 new attorneys have been hired and there are still 42 positions within the office that need to be filled although they are not all attorney positions. 
• The office is seeking more grant money and has hired a person to work on this.
• The three primary issues going forward are 1. Caseloads continue to be too large 2. Training for all in the office 3. Technology solutions for case loads
• Comm. Daley asked about lessons from the pandemic regarding representation of clients. Mr. Mitchell said that they are still assessing how virtual hearings can be used. Also working on a court notification system to ensure that clients do not miss their court dates.
• Comm. Aguilar asked about the hiring of the immigration lawyers. Mr. Mitchell said the lawyers have not been hired and the job descriptions had to be updated and have now gone to HR. The caseworker and paralegal positions have been posted. 
• Comm. Sean Morrison asked how Covid impacted hearings. Mr. Mitchell stated that access to the courts was slower than in the past. Of the 13,000 cases at the beginning of Covid about half have been resolved. A backlog remains. The court system is beginning to move ahead now and his staff is back in the office. The Speedy Trial Statute was put on hold and will probably be reinstated soon. His office is ready to move forward now.
• Comm. Anaya requested a time frame for when the Immigration Unit will be operational. Mr. Mitchell said they are still working on a time frame. The expect to hire half of the staff this summer and by next summer (2022) they will be fully staffed and operational. Anaya also asked about technology that will be brought into the office. Response was that they are still evaluating the type of technology they need. One of their primary concerns is the retention of digital files. 
• Comm. Suffredin asked about the Speedy Trial Statute. Mr. Mitchell stated that in March 2020 the Illinois Supreme Court suspended the right to a speedy trial but the statute is expected to be reinstated on October 1. Mr. Mitchell says that the statute is the “gas” that moves the system along as it puts pressure on all to move the cases along. Comm. Suffredin said that the court system is going to need funds to ensure that they will be able to handle the cases going forward. 
• Comm. Daley asked about how long it takes to hire attorneys. Mr. Mitchell says it is a long process. The recent attorney hiring process began in January and the 13 new hires are starting in July. An additional 25 are needed. 8 attorneys have left in the last 3 months which is about the normal attrition. The office has just issued their return to work policy. 
• Comm. Sean Morrison asked if there are any areas where virtual hearings can expedite the process. Mr. Mitchell said there is a time and place for virtual meetings/hearings and this will need to be established. Some hearings need to be in person but what is the balance. Comm. Morrison stated that the issue needs to be discussed with your colleagues so the criminal justice process can be “reimagined”.

Observers - Pris Mims and Cynthia Schilsky