Finance Committee Supports Taxes on Hotels, E-Cigarette Vapor, Ammunition, & Ticket Resellers, Increases to Clerk of the Court Fees

2016 Cook County Proposed Budget:  Finance Committee Meeting, November 13, 2015

The Finance Committee voted to recommend all the items supported by the Administration at this meeting to consider additional revenues needed for the proposed $4.5 billion budget, as detailed below. The Finance Committee is expected to meet on Wednesday, November 18, following the already scheduled Board and Committee meetings, to consider amendments due to be filed Nov. 13 on the entire proposed budget. Following that meeting, the Board would likely vote on these revenue recommendations and the entire proposed budget. 

 

Also approved by the Committee was an Intergovernmental Agreement between Cook County and the Pension Fund (which has already been approved). This Agreement provides that $270,526.000 of the sales tax revenue will be contributed by the County to the Pension Fund in November, 2016.  This approval came after consideration of an alternative “Memorandum of Understanding” supported by Commissioners Gainer, Fritchey, Suffredin, and Murphy which would have provided for a continuing obligation beyond 2016, though this agreement, like the one approved, did have a termination provision. The Administration stated that it is expected that similar Intergovernmental Agreements will be presented as part of each future budget if the Administration’s Pension Reform Bill before the Illinois legislature is not enacted.

Hotel Tax (Item 15-6468).  As passed, effective May 1, 2016, will add a new County tax of 1% on the gross rental/room rate of all hotels, motels, and vacation stays in homes, the latter added by an amendment in order to make sure this covers Airbnb-type arrangements. This will increase the total tax in Chicago to 17.4%, the 4^th highest in the country. 

A number of speakers during the Public Comment portion who represent the hotel and tourist and convention industry opposed the taxes, expressing concern that it will result in conventions looking elsewhere where the costs are lower.  The representative from Choose Chicago, the official tourist marketing agency for Chicago, said that while there was no lost business when Chicago raised the hotel tax several years ago, that was done in connection with cost-cutting reforms at McCormick Place and the creation and funding of Choose Chicago, which currently has lost its state funding. Other speakers, including representatives from some of the County’s employee unions, supported this and the other taxes so that the County would not have to lay off workers and reduce services.  Commissioner Suffredin also expressed concern that this tax was being imposed without proper planning; he questioned whether the estimated revenues from this tax were too low.

Voting to approve:  Arroyo, Boykin, Butler, Garcia, Goslin, Moore, Murphy, Sims, Tobolski, Daley

Voting against:  Fritchey, Gainer, Morrison, Schneider, Silvestri, Suffredin

Absent:  Steele

Vapor Fluid Tax (E-Cigarettes) (Item 15-6025).  As passed, effective May 1, 2016, will add a new tax of $0.20 per fluid milliliter of nicotine liquid solution depleted as a vapor product. 

During Public Comments, speakers for and against spoke on this issue.  Speakers for cited health issues.  Speakers against (those in the business of selling vapor products) said that they would move out of Cook County and the County would lose the sales taxes, as well as not see the revenues from this new tax.

Voting to approve:  Arroyo, Boykin, Butler, Gainer, Goslin, Moore, Murphy, Silvestri, Sims, Suffredin, Tobolski, Daley

Voting against:  Morrison, Schneider

Voting present:  Fritchey

Absent:  Garcia, Steele

Tax on Ammunition (Item 15-6469).  As passed, will impose new tax effective June 1, 2016 of $0.05 per cartridge for centerfire ammunition and $0.01 per cartridge for rimfire ammunition, with all proceeds to go to public safety operations.

Speakers were for and against during the Public Comment period.  Commissioners voting against this were concerned that this would again drive out businesses, thereby losing sales taxes and jobs, but would not produce sufficient revenues to combat the problem of gun violence.  Also, the tax on guns enacted by the County several years ago has been tied up in litigation, and there was concern that this tax will be contested in court.

Voting to approve:  Arroyo, Boykin, Butler, Garcia, Moore, Murphy, Sims, Suffredin, Daley

Voting against:  Fritchey, Goslin, Morrison, Schneider, Silvestri, Tobolski

Absent:  Gainer, Steele

Amusement Tax   (Item 15-6024): The Administration had withdrawn its proposal to tax cable television, as well as bowling and golf and other similar amusements, but this item is intended to make the County’s ordinance consistent with Chicago’s, and it also imposes the tax on ticket sellers and resellers who have a physical presence in the County.

During the Public Comment period, it was clarified that State law preempts the County from imposing the tax on internet auction listing services, such as E-bay, Stub Hub, etc.  The representative for the Central States Ticket Brokers Association said that it does not impose the tax per se, but wants it to be applied to all, but, as Commissioner Suffredin said, that would take a change to State law. 

Voting to approve:  Arroyo, Boykin, Butler, Gainer, Moore, Murphy, Silvestri, Sims, Suffredin, Tobolski, Daley

Voting against:  Fritchey, Goslin, Morrison, Schneider

Absent:  Garcia, Steele

Clerk of the Court Automation Fee (Item 15-5775):  Effective December 1, 2015, the court automation fee will increase from $15.00 to $25.00 and be imposed on each party in all civil cases and by the defendant in other cases.

A representative of the Illinois Association of Defense Trial Counsel spoke against this and the next fee.

Voting to approve:  Arroyo, Butler, Gainer, Moore, Morrison, Murphy, Sims, Silvestri, Tobolski

Voting against:  Boykin, Goslin, Schneider, Daley

Voting present:  Fritchey, Suffredin

Absent:  Garcia, Steele

Clerk of the Court Document Storage Fee (Item 15-5780):  Effective December 1, 2015, the court document storage fee will increase from $15.00 to $25.00 and be imposed on each party in all civil cases and by defendants in other cases. 

Voting to approve:  Arroyo, Butler, Gainer, Moore, Morrison, Murphy, Silvestri, Sims, Tobolski

Voting against:  Boykin, Fritchey, Goslin, Schneider, Daley

Voting present:  Suffredin

Absent:  Garcia, Steele

-- Priscilla Mims, League Observer

Department Review Meetings for 2014 Budget: Monday, Oct. 28, 2013

Juvenile Temporary Detention Center and Clerk of the Circuit Court

The Juvenile Temporary Detention Center (“JTDC”) has been under the supervision of the Federal Court and a court-appointed Transitional Administrator, Earl Dunlap, for six years.  Mr. Dunlap commended the staff at the JTDC for the major improvements that have been made there.  Commissioner Sims questioned him as to when the Court might find the JTDC ready to be returned to County supervision (which would now be under the Chief Judge).   Mr. Dunlap said that he could not say.  There is a status hearing in January, and Mr. Dunlap wants to establish a transition process with the Chief Judge.  A number of things that have held up the transition are now under way:  a request for proposal for a management information system is now ready to go, but it will probably take 6 to 9 months to implement it; the video system is only now being installed; the work to replace the ceilings has begun.

Besides making the transition back to County supervision, the other major issue for the JTDC for 2014 is dealing with the additional JTDC population due to Raise the Age effective Jan. 1, 2014 (whereby those age 17 will now come under the juvenile justice system, rather than being treated as an adult).  Mr. Dunlap said that he had to open another center within the JTDC in 2013 to deal with the increase in the daily population (now averaging between 290-310/d), and he expects to have to open another one in 2014 due to Raise the Age. 

Clerk of the Circuit Court Dorothy Brown raised several issues.  While news reports have been derisive about her office using carbon paper, she said that is the result of the County Print Shop not stocking sufficient carbonized paper to be able to print forms used by her office.  The Budget Director said that there is an increase in the Print Shop’s budget for 2014 which should help with that.

Clerk Brown complained about not being able to hire for positions that have been approved in her budget.  The Budget Director explained that each department has a turnover adjustment which reduces the amount available for personnel, reflecting the salaries not being paid during the time between employees leaving and replacement employees being hired.  If a department does not experience the expected turnover, departments are advised to delay hiring employees for open positions.  The Budget Director was clearly surprised that Clerk Brown raised this issue has the Budget Director had not heard from the Clerk’s Chief Financial Officer that there was a problem.

Clerk Brown also said that recent State legislation allowing cases to be heard through the County and Chicago Administrative Hearings (such as the red light camera tickets) means that there are fewer court fees being paid to her office.  [Clerk Brown failed to note that there is also a reduction in court costs as a result of cases being dealt with by Administrative Hearings.  Unless the court fees are greater than the court costs, there should be a net benefit to cases being handled through Administrative Hearings.]

Clerk Brown said that the City of Chicago owes $11.2 million in filing fees for lawsuits filed to collect unpaid fines.  Finally, Clerk Brown said that the Illinois Supreme Court requires that there be paper files even though some cases and related items may be electronically filled.  As long as that is the situation, she says she cannot reduce her staffing levels.

-- submitted by Priscilla Mims, observer

Department Review Meetings for 2014 Budget: Tuesday, October 22, 2013

Treasurer, Inspector General, and Public Administrator

Treasurer Maria Pappas touted that her office is “almost” totally funded through the Special Purpose Fund of the “Tax Sales, Automation Fund,” which derives its money from user fees for the sale of property with delinquent taxes.  [Note:  $9.6 million of the total Treasurer’s proposed budget of $11.6 million comes from the Special Purpose Fund.  The remaining $2 million comes from the Corporate Fund.]  The Treasurer also reminded the Commissioners that since becoming Treasurer, she has significantly reduced the number of Full Time Equivalents (FTEs) from 250 to 92 in the proposed budget. 

Much of that reduction is due to the use of technology and the use of banks and other outlets for the payment of property taxes, as well as online payments.  Treasure Pappas said that the web site is getting 325,000 hits per month, and that 120,000 e-mails are being answered automatically.  Under the STOPS program, $165,000 has been returned to taxpayers as being duplicate payments.  The tax sales program is now automated resulting in tax sales taking place in 3 days, rather than 6 weeks.  The Treasurer said that her office is now undertaking a comprehensive scanning project with the expectation that there will be no filing cabinets of paper by 2015.  To accomplish this technological push, her department now has 25 full time IT employees.

Commissioner Suffredin inquired as to whether the Treasurer has been able to resolve the issues of whether the data is correct in the government bodies’ debt disclosure publication from the Treasurer’s office.  The Treasurer stated that her office is now contacting the local government bodies to make sure the numbers are correct.

Independent Inspector General Patrick Blanchard reported that his office is now fully staffed having hired 5 new investigators.  His office will be taking over the investigation of all complaints under the Shakman decree, which prohibits the hiring/firing/promotion of employees for political reasons, once the President’s Office is deemed in substantial compliance.  He will have 5 of the 14 investigators available for investigating such complaints.  About 30% of the office’s time is now being spent on Shakman-related matters.  His office is also doing work for the Forest Preserve (and being paid for that work out of the Forest Preserve’s funds).  He anticipates over 500 complaints (not related to Shakman) being received by his office this year, which are reviewed before opening a formal OIG investigation.  One investigator is located at Stroger Hospital, and that proximity has resulted in additional complaints being filed.  As a result of his office’s investigations, the Procurement Code was amended to require itemized bills with the dates and description of work performed by County contractors. 

The main outstanding issue for the office is its jurisdiction over the departments under the Elected Officers in the County, other than the President and Board of Commissioners.  Commissioner Goslin stated that it was certainly his intent when he voted for the ordinance creating the Office of Inspector General that it would have jurisdiction over all Cook County officials and employees.  The Inspector General said that the Clerk of the Court has accepted the OIG’s jurisdiction, despite the fact that there is an argument that as part of the State’s court system, the Clerk would be exempt. 

Nicholas Gapas, the Public Administrator, explained that his is a State office, but his budget is under the jurisdiction of the County Board.  However, the money for the budget comes solely out of the fees generated by the Public Administrator in administrating the estates of decedents who leave no will or whose named executor is not able to be the administrator.  If there are no known heirs of decedents, their real estate in Cook County escheats to the County.  Mr. Gapas estimates that close to $3 million will come to the County this year due to unknown heirs and revenue and interest for administering estates.  The Public Administrator’s expense budget for 2014 is only $1.1 million.

-- Priscilla Mims, observer  

Cook County Budget Hearings October 25, 2013

                         The following are budget reports from Cook County
                                  Public Defender and Chief Judge

Public Defender Abishi Cunningham presented some details of his budget requests and changes made to his department in the past year.  First, the employee count (FTE) will increase  by 11 people in the area of line staff, investigators,  and additional attorneys. Last year the increase was 24 FTEs.   This should reduce overtime over the next year.  Staff and attorneys are working with outside groups to do bond reviews in order to lower bonds and/or  increase electronic monitoring.

Three new grants have been received:   to train attorneys on forensics such as DNA results;  for adult re-deployment  for non-violent drug users;  and for mitigation specialists to produce more informal sentencing decisions.

The Public Defender's office is working with the Clerk of the Court to monitor continuances (which appear to be excessive) in order to close cases more quickly.  Staff is being trained to use digital technology to help decrease court case duration.

One money-saving change in this department is purchasing fewer cars for employee use.  Instead, the use of  Zip Car, which is a public vehicle rental used by the county, and sharing the county's fleet vehicles  will lower expenses in this area.

STAR performance management goals include performance goals for staff;  evaluation of attorneys;    decreasing open cases;  and lowering complaints toward the Defender's office.  These last two goals have been accomplished in that there were fewer than 1% open cases and complaints.


Chief Judge Tim Evans appears to disagree strongly with President Preckwinkle's budget recommendation for the court system he leads and has asked the Commissioners to make amendments to increase his budget.  There is about a $6 million difference in the amount he has requested ($146.9 million) and the amount the President has budgeted ($140.6 million). He argued that the separation of powers in government, with all 3 branches being equal, warrants his getting 1/3 of the total budget;  his department currently has 5% of the budget.  He also complained that the President's office has many more highly paid (grade 24) employees than his office.  He has asked for 108 more employees and was budgeted 7 more.

Specifically, he has asked for more employees for a pre-trial service system  to make risk assessments of defendants.  This would aid bond court judges in making better decisions in deciding bond levels.  Currently, 51 probation officers are doing this job.  Judge Evans stated that judges use 38 factors including the risk assessment, current charge, and criminal history in determining bonds.  However, bond hearings usually last less than two minutes per case.

Psychiatric evaluations (to determine if a defendant is sane enough to stand trial) are taking 90 days and DNA evaluations are backlogged, both of  which make cases begin later and last longer.  With regard to juvenile defendants, Judge Evans stated that 5,000 are in alternative programs and 263 are in the Juvenile Detention Center.   He deems these programs a success in reducing recidivism and providing better rehabilitation for young defendants.

The County's new Legistar System (a new computer program) will enable outside hired attorneys to submit their payment orders themselves.  This should reduce transcribing errors, but attorneys and employees in the Clerk of the Court office will need to be trained in how to use the system correctly.

Judge Evans does not use the County's STAR performance management system but has stated "we are going to let the public know how close we are to standards."

Cook County Board Meeting May 7, 2012

The meeting was called to order @ 10:45 a.m. by President Toni Preckwinkle.  All commissioners except Jeffrey Tobolski, District #16, were in attendance.

Prior to 10:45, various committees met.  Of interest is the discussion around the much publicized $10 charge for the first minute that a Cook County inmate uses a jail phone.  The Criminal Justice Committee has asked for a study and feedback within 45 days.  Revenue from the phone program handled by an outside vendor goes to the County's undesignated funds.  There appeared to be a consensus that the charge was too high.

 

At the Finance Committee meeting, it was noted that revenues are up $7.4 million in this budget year.  This includes increased sales tax revenues of $1.1 million.

The Real Estate Committee voted to add $100,000 to the new license to Natural Gas Pipeline of American LLC for restoration after it runs a new underground pipeline on Forest Preserve District land.  The corporation would pay the Forest Preserve District almost $400,000 (for license fee and tree and land mitigation) in total.

During the Board Meeting, at least 6 resolutions were offered honoring people, schools, Memorial Day, Korean War Veterans, Parents United for Healthy Children, and those people and institutions that came forward to help the County bury the indigent.

The Clerk of the Court again requested a transfer of funds which raised the issue--again--of how the Clerk’s office managed to have excess funds in one account of $246,000 a few months into the new year, while the 2012 budget for the office was lower and, they claimed, "bare bones." The transfer was approved with some head shaking.

Almost 30 minutes was spent on the issue of the cost of inmate feeding and contract extensions because of failure to get the RFP out in time.  The jail population is up after declining for the last 3 years.  It is currently at 98.7% of capacity.  No substantive reason was given.

The Cook County Commissioners agreed to pay $600,000 to settle the county’s portion of a lawsuit brought by a freed prison inmate.  This closes any further liability the county has in the larger Chicago Police Lt. John Burge torture trial.

President Preckwinkle and Commissioners Garcia, Goslin, and Daley proposed an ordinance to extend county ethics rules on lobbying, conflicts of interest, nepotism, and political contributions to appointed members of boards and commissions.  The proposal was referred to committee.

  

A resolution urging Gov. Quinn and the Illinois General Assembly not to cut Medicaid funding was moved to the Finance Committee.  Cuts to hospitals will likely mean more indigent patients at Stroger with attendant costs.  The meeting was adjourned at 1:40 p.m.

--Submitted by Diane Edmondson