Cook County Board President Toni Preckwinkle announced on June 23 the release of the preliminary budget forecast for Fiscal Year 2023, showing a projected gap of $18.2 million. This is the smallest budget gap since Preckwinkle took office more than a decade ago.
The announcement comes after several years marked by challenges such as the COVID-19 pandemic, inflation, and economic uncertainty. The projected gap represents a nearly 97% decrease from the almost $410 million shortfall during the height of the pandemic.
Preckwinkle said that federal relief funds, one-time revenues, careful financial management, and a strong labor market have contributed to this improved outlook. “In the face of multiple economic risks, Cook County has had its bond rating upgraded, has continued making supplemental pension payments to put the County’s pension fund on a path towards sustainability, has built up a manageable reserve fund for difficult days ahead and developed hundreds of millions of dollars in equity programs and pandemic relief all while putting forward balanced budgets with no increases to existing taxes,” Preckwinkle said. “I am proud our responsible fiscal practices have put us in a position to endure these financial hardships while providing vital services to millions of residents through balanced and equitable budgeting.”
The county plans to continue investing in small business assistance, emergency rental programs, violence prevention efforts, environmental improvements, infrastructure upgrades, economic development initiatives, and digital equity projects in FY2023. Cook County received over $1 billion from the federal government through the American Rescue Plan Act (ARPA) and will invest about $700 million over three to five years into community programs for residents and businesses.
Efforts are also underway to build an Equity and Inclusion Fund as part of more than $100 million in equity-based investments since FY2021. The fund aims to address disparities affecting Black, Latine, and other marginalized communities by supporting justice reform, public safety improvements, health access expansion, housing support programs, economic opportunity initiatives, community development projects, and social services.
For FY2022 year-end projections in the General Fund show positive net results of $233.4 million due largely to increased tax collections influenced by inflation and higher fee collections from a robust housing market. In FY2023, officials expect a General Fund shortfall of $4.3 million with revenues anticipated at $80.4 million above last year’s adopted budget but expenses rising due to personnel costs and inflation-driven price increases for goods and services.
The county’s hospital system expects positive net results of $29.3 million for FY2022 but forecasts a shortfall of $13.9 million next year due to rising labor costs and reduced federal reimbursements as pandemic-related funding ends.
“Our work is far from done and we may have to deal with the very real possibility of a recession,” Preckwinkle said. “We will continue this approach as we work with our commissioners and other elected officials in the coming months.” A virtual public hearing on the preliminary forecast is scheduled for July 11 at 6 p.m., where residents can provide input on budget priorities.
