Cook County, Illinois, releases executive budget promising no new taxes

Bonds

Cook County, Illinois, officials released a $9.89 billion executive budget recommendation Thursday, after saying in a press briefing Wednesday that the nation’s second-most populous county will see no new taxes or layoffs.

Cook County Board President Toni Preckwinkle said 56 open positions are being cut.

The eliminated positions were ones the county anticipated filling with support from American Rescue Plan Act funds, according to the budget document. Officials said that either the programs in question didn’t require the level of staffing projected, or they opted not to pursue those programs at all.

Cook County Board President Toni Preckwinkle speaks in 2022. Preckwinkle Thursday released Cook County’s executive budget for 2025.

Bloomberg News

The county reported a decrease in personal property replacement tax revenue and increases in expenses like overtime and general fund transfers to special purpose funds. But sales tax and other revenues have increased as well as general fund balance transfers, and expenditures including payroll, employee health benefits and capital projects have decreased.

The healthcare operating budget accounts for 53% of the total budget, with public safety making up the next largest share, or $1.694 billion, followed by finance and administration at $769.1 million and capital projects at $653.4 million.

General fund revenues are projected to grow by $95 million, accounting for a one-time general fund balance transfer. The proposed general fund budget for fiscal year 2025 is $2.19 billion. About 55% of that revenue is from county sales taxes; 13% is from non-property taxes; 8% is from property taxes; 8% is from fees and licenses; 7% is from other sources; 5% is from miscellaneous; and 4% is from intergovernmental revenues.

On the expense side, 71.7% of the general fund budget goes to personnel; 9.1% goes to contingencies; and 6.3% goes to contractual obligations, among other expenses.  

The uses of general fund revenues include additional staffing for the property tax valuation division, increased funding to the Veterans Assistance Commission, the investment of the unassigned fund balance to advance renewable energy efforts such as solar panels on county facilities and technological advances like the use of generative artificial intelligence.

The county projects steady growth in its pension funded ratio, with the expectation that it will reach the 100% funded level by 2056. 

The state approved a law in 2023 spearheaded by Cook County that requires the county to make actuarially determined contributions. It gives the county 30 years to pay down all liabilities accrued prior to 2017.

Cook County has general obligation bond ratings of AA with a positive outlook from Fitch Ratings, A1 with a stable outlook from Moody’s Ratings and A-plus with a stable outlook from S&P Global Ratings.

Kroll Bond Rating Agency rates the county’s sales tax revenue bonds AAA with a stable outlook. Fitch rates the bonds AA with a positive outlook and S&P rates them AA-minus with a stable outlook.

The county is rolling out formal policies on generative AI later this month, but is already using it in certain capacities. 

Cook County is taking a “careful, methodical approach” Chief of Technology Tom Lynch said during Wednesday’s press briefing. The county has established a governance process to ensure it is doing pilot programs in the most effective way, and is following National Association of Counties guidelines.

But Cook County is already using AI for certain purposes — for example, to identify changes to property which may affect property tax revenues, such as additions to homes for which homeowners have not yet applied for permits, he said.

Articles You May Like

Trump inches ahead in tight White House race, GOP takes senate
DeltaPrime exploited for $4.8M worth of ARB and AVAX tokens
Bitcoin sudden pump to $81K annihilates $180M shorts in half a day
Trump warned against meddling with Federal Reserve’s independence
Gazans ‘being starved’ as Israel fails to meet US demands, say aid groups