Mid-Year Budget Meetings of the Finance Committee

Cook County Board of Commissioners Finance Committee
Monday, July 28, 2025, Morning Session

Bureau of Finance (BOF) Budget Overview
Appearing for the Bureau:  Tanya Anthony, Chief Financial Officer; Dean Constantinou, Deputy Chief Financial Officer; and Kanako Musselwhite, Budget Director
Tanya Anthony and her staff, as well as the Commissioners, focused on the many factors that are making it very difficult to forecast revenues and expenses, including a potentially slowing economy, cuts in State aid for Medicaid, and potential cuts in federal grants and Medicaid.

• Current Budget Projections:

FY 2025 General Fund:   $145.1 M surplus
FY 2025 Health Enterprise Fund:  $15 M deficit
FY 2026 General Fund: $102.6 M deficit
FY 2026 Health Enterprise Fund: $108.8 M deficit

• The first Medicaid cuts will be the termination of the State’s contribution for health benefits for immigrant adults which were effective as of July 1 and for FY 2026 could cost $50M.  The new federal re-registration and work requirements for Medicaid will take effect in 2027.   It is estimated some people will lose their coverage because of work requirements or difficulty in completing the documentation requirements. That cost could be $88M.   It is hard to project how many people will resort to emergency rooms with the loss of Medicaid coverage or not use health services at all.
• Cook County currently has $75M in federal grants which could be at risk.  The Bureau of Finance is putting a “stop gap” amount in the 2026 budget so that the programs will be able to continue through the 2026 year.   They are considering strategies to maintain essential services and personnel going beyond that.   There is a group analyzing potential new revenue sources internally (rents, leases) and externally.
• Commissioner Gainer suggested that the County create a computer system to help people upload their documentation for Medicaid periodically.  Ms. Anthony said they could look at collaborating with regional partners and the State.
• Commissioner Britton asked if the BOF was considering worse cast scenarios.  Mr. Constantinou said they construct best case, middle, and worst-case options for their revenue and expense forecasts.
• Commissioner Britton asked if the BOF was considering offering interest free loans to public bodies that need funding because of the delay in the 2nd installment of the property tax bill this year.  Ms. Anthony said that when they offered that in the past, there was little use of it; so they are not doing it this year.

Office of the President
Appearing for the Offices under the President:  Lynetta Haynes Turner --  Chief of Staff; and Bureau Chiefs:  Administration -- Zahra Ali; Asset Management -- Elizabeth Granato; Economic Development -- Xochitl Flores; Finance -- Tanya Anthony, CFO; Human Resources -- Velisha Haddox; Technology -- Tom Lynch
The Commissioners main concerns about the rest of this fiscal year and next year were with the expectation that federal funding may be cut and that federal regulations on the environment and technology will be changed.

• Lynetta Turner stated that the strategy of Cook County Government is to be responsible, thoughtful, and compassionate.  This year there is a balanced budget with no new taxes.  They are currently 8.5% under budget.  The employee vacancy rate has decreased from last year, from 24% to 17%.
• With the potential for federal aid cuts, they are evaluating programs in a measured and deliberate manner.    Programs initiated  with ARPA funds are being evaluated for their transformative impact.  She showed a video on the Modular Home Project that provided newly built homes.  She highlighted several other successful projects such as medical debt relief, lead abatement, improved infrastructure, and gun violence intervention.
• Commissioner Gainer questioned if the remodeling of the Commissioners’ offices was necessary with the budget constraints.    Ms. Granato responded that much of the work being done is to make all County offices accessible to employees and visitors and to make them more energy efficient.   
• Commissioner Gainer asked about employee recruitment.  There was a recent job fair that 2400 people attended.   The County is making a special effort to reach out to newly terminated federal employees that will have relevant skills. 
• Commissioner Degnen asked if the ARPA funds will be completely spent by 2026.  The Bureau of Finance is closely monitoring all the programs, currently moving funds that will not be spent on one project to other successful projects.    
• Commissioner Degnen asked about the use of AI in county technology.  Mr. Lynch stated that the County is following the guidelines set up by the Biden administration.  There are places it could be very useful and the Bureau of Technology will provide briefings to the Board.   
• Commissioner Anaya also asked about federal funding particularly in the area of domestic violence.  The Justice Advisory Council (JAC) plans to continue most of its ARPA initiated programs beyond 2026, but on a smaller scale. The JAC has separate revenue streams.  They are working to have all their ARPA funds spent by September of 2026.  The Department of Emergency Management Services is waiting on $18 million dollars in federal aid that is currently being delayed.
• Sis Killen of the Department of Transportation stated that they did not anticipate current funding to be clawed back, but future grant competition for federal funds could be more difficult. In response to Commissioner Trevor’s question about public transportation in suburban areas, she said that Cook County supports the initiative in Springfield to invest $1.5 Billion in regional transportation.  The County worked with PACE and Harper College to bring back some bus service to the college. Invest in Cook funds were used which are funded from local fuel tax.

Office of the Independent Inspector General (OIIG)
Tirrell Paxton   Inspector General Cook County

• Mr. Paxton explained the scope of his office.  They are currently under budget by $319,000 due to open positions.    Besides filling those positions this year, his office is requesting 5 additional staff for the next fiscal year.   He is also requesting an amendment to the Inspector General ordinance that would provide a minimum funding level:  a set % of the total County budget.  This is to ensure that the Office can be truly independent and not subject to political pressure in the budgeting process.
• Mr. Paxton had invited Dick Simpson, UIC professor, Alisa Kaplan, Executive Director of Reform for Illinois, and Michael Shakman to speak in support of the need for independent funding for the Office.    This had not been pre-approved by Chairman Dailey, but he agreed, with the leave of the Commissioners, to let the speakers proceed.  All speakers emphasized the high level of corruption in Illinois politics and the need for the Inspector General Office.  They also identified situations in other states where an Inspector General Office was limited or completely defunded because of political fights.
• Commissioner Britton stated that this hearing was not the appropriate vehicle for requests for next fiscal year or for changes in the statute.   He said that if an agency requests more money, it is their responsibility to find where that revenue can be taken from another department.  Commissioner Aguilar agreed with this.
• Mr. Paxton related his attempts to raise his concerns at various meetings with the Commissioners and others.   He said that he had scheduled a meeting with the Chief Financial Office before this meeting but the CFO canceled it.   A representative of the CFO said that the OIIG will be part of the standard budget meetings with all departments.
• Commissioner Degnen asked what the process was to get a report response from an uncooperative agency.  The OIGG brings the issue to the Litigation Committee and if they cannot get a response, the OIGG can take the issue to the State’s Attorney.
• Commissioner Anaya said she thought that it was correct for an agency to ask for more money in these hearings and that it wasn’t required that the agency determine the source of the extra funds.

Observer:  Kathi Graffam