The Cook County Board of Commissioners has approved a $4.4 billion operating budget for fiscal year 2017, aiming to address financial challenges without major cuts to public safety and health services. The board also passed a separate $475.7 million capital budget to support infrastructure and equipment needs.
Cook County Board President Toni Preckwinkle said the process was difficult due to a projected $174.3 million shortfall identified in June. Factors contributing to the gap included ongoing state budget issues, increasing legacy debt service costs, stagnant or declining revenues, and higher technology spending required for system upgrades.
“Developing this budget has been a grueling experience,” Preckwinkle said. “Almost exactly a year ago I cautioned that FY 2017 would be a challenge and I believe we have responded with a responsible and responsive budget. We are making more than $70 million in cuts, including reducing our headcount by 1%, in order to close the $174.3 million preliminary forecast gap.”
Despite having diverse revenue sources, county expenditures continue to rise due to inflation while revenue growth remains slow or negative in some areas. Without new revenue initiatives, General and Health Fund revenues would decrease by $62 million after accounting for increased pension contributions.
The county’s property tax levy has not kept up with inflation over the years and is now valued at about $300 million less than it was in the 1990s when adjusted for inflation. To help balance the budget structurally, commissioners approved a one-cent-per-ounce tax on sweetened beverages sold within Cook County.
This new tax is expected to generate approximately $73.7 million next year and will enable the county to double its investment in community-based anti-violence programs while avoiding further layoffs in public safety roles. In fiscal year 2017, Cook County plans to allocate $6 million toward anti-violence, anti-recidivism, and restorative justice initiatives.
Preckwinkle noted that closing the preliminary gap required both increased revenues and spending reductions: “Noting the need for shared sacrifice and a balanced approach to closing the preliminary budget gap, the FY2017 budget includes nearly equal amounts of revenue increases and expense reductions.” The plan calls for about $78.5 million in expenditure reductions alongside anticipated income from the beverage tax.
Other cost-saving measures include workforce reductions—shrinking staff by about 1%—consolidating warehouse space, reducing real estate holdings, and cutting operating funds allocated to the Cook County Health and Hospitals System (CCHHS) by $10 million down to $111.5 million. Since Preckwinkle took office, CCHHS’s allocation has dropped more than 70%, or roughly $280 million; this follows progress by CCHHS as it transitions into serving more insured patients than uninsured ones.
President Preckwinkle also committed not to raise other taxes over at least two more fiscal years as part of this initiative.
Investments will continue in modernizing government operations through technology upgrades intended to improve resident services. The county also plans further demolition of outdated jail facilities while continuing efforts that have already reduced its pre-trial detainee population by about 25% since Preckwinkle became president.
Budget documents are available online for public review at cookcountyil.gov/budget/.
