Forest Preserve District proposes flat budget for 2016

FOREST PRESERVE DISTRICT OF COOK COUNTY November 17, 2015 Meeting

The FPDCC presented a flat budget for 2016.  Most of the public testimony at the budget hearing supported the proposed budget which preserved all programs. Many public speakers described their good working relationship with the district and how current programs have benefitted their constituents. Speakers included representatives from Green Corps Chicago, University of Illinois Extension, FPDCC's Conservation Corps, Thatcher Woods Savanna Restoration Project, Growing Solutions (a program for developmentally challenged students from Al Raby High School that grows vegetables for Brookfield Zoo animals); Mujeres Latinas en Accion, El Valor, Chicago Botanic Garden, and Chicago Zoological Society (Brookfield Zoo). Several speakers gave moving testimonials on how FPDCC's programs have personally impacted them, giving them opportunities and, for some, a chance to turn their lives around.  All speakers supported expansion of current programs.

Representatives of various Cook County equestrian groups objected to having to pay a fee to use the trails, which were the precursors of today's bike/walking trails and paths.  Many equestrians are members of the Trail Watch volunteer program that informs FPDCC when trees have fallen across trails or block stream flow, or there are other issues needing attention. Most of the surrounding counties do not assess a trail users fee. The collected annual fees ($34 for residents/$49 for non-residents; daily fee is $4) are supposed to be used for "equestrian amenities".  However, of the $80,000 in fees collected the past two years, the only identifiable amenity the four public speakers have seen is seven hitching posts.  They asked to see the equestrian amenities plans.

Forest Preserve Foundation President Shelley Davis highlighted their accomplishments as described in their 2015 annual report , and strategic plan. As an independent 501(c)(3) non-profit organization, the foundation encourages and administers private gifts to further the district's mission and goals. Aligned with the Next Century Conservation Plan and the Centennial Campaign Plan, the foundation focuses on building a base of partners and supporters.  Highlights included raising $168,000 at the Conservation Cup Golf Tournament, which will allow for expansion of the FPDCC's Conservation Corps program.  Due to pension payment uncertainties, the financial support from the foundation will become increasingly important.

More critical of the proposed budget was Lawrence Msall, president of the Civic Federation, which submitted 57 pages of comments on the budget (unclear as to whether those comments also addressed the Cook County Board's budget.) Msall said FPDCC needs a contingency plan for funding pension obligations if pension reforms don't happen. He called for separation of the FPDCC from the Cook County Board, and stated that the current governance & budget aren't sufficiently transparent.

Also concerned about the impact of pension payments on future programs was Benjamin Cox, Exec. Dir. of Friends of the Forest Preserve.  Based on his review of page 17 of the budget, pension obligations will not strain the budget in 2016, but the picture will be different in 2017. He expressed concern that the Resource Management funds which are critical to the district's core mission, will be sacrificed to the pensions.

Commissioner Larry Suffredin picked up on this theme with his similar concern, and General Superintendent Arnold Randall agreed that pension payments are the elephant in the room for the 2017 budget.

Commissioners will vote on the budget at the December 15, 2015 meeting.

In other matters. . .

• Commissioner Larry Suffredin reported on his annual survey of picnic permit users.  One hundred fifty-one (151) respondents out of 400 identified the need for more recycling bins, cleaner restroom facilities, and suggested adding power to picnic shelters.  Signage regarding water pump usage is also necessary. 
• The new campgrounds will be open during winter for cross-country skiing.

Agenda items included the following. . .

• The proposed collective bargaining agreement, salary schedule, wage adjustments and health care plan were referred to the Labor Committee (#15-0584); a leave of absence policy for organ donors was also proposed (Item #15-0618).
• An audit of evaluating the effectiveness of internal controls over procurement card usage was referred to the Audit Committee (#15-0596).
• Proposed contracts include $200,000 for a second large truck capable of removing & transporting large logs (#15-0602); an increase in rock salt & de-icing materials (total contract amount will be $384,000; the City of Chicago and FPDCC bid jointly with the supplier; #15-0603)
• Proposed $1.12 million contract for restoration of 366 acres of the Cranberry Slough Nature Preserve (Palos area).  This site is the #1 priority for restoration as identified in the 2014 Next Century Conservation Plan. (#15-0607); proposed agreement with Openlands and Army Corps of Engineers to develop a work plan to restore valuable remnant wetland communities and the surrounding watershed at Deer Grove West (#15-0620).  The 500 acre Deer Grove West was  FPDCC's first acquisition when it was established 100 years ago.  Costs of this project will be funded via the O'Hare Modernization Mitigation Account designed to address off-site wetland impacts from the O'Hare expansion. Deer Grove West is in the top five priorities for restoration according to the Natural & Cultural Resources Master Plan.
• Proposed partnership with The Nature Conservancy to collaborate on wildfire management activities (Item #15-0621).
• Proposed 10 year license to Waste Management of Illinois, Inc. to install & operate an additional groundwater monitoring well in Beaubien Woods, across the Bishop Ford Highway, from the CID Landfill. License fees exceed $12,000 this year. (#15-0613)
• Proposed contract ($675,000) with Constellation Energy Services to supply district wide electricity (#15-0615)

Submitted by Sheri Latash

Issues of Pension Liability, Legality of Using Sales Tax Revenues and Tax on Cable TV Dominate

2016 Cook County Proposed Budget:  Bureau of Finance and Auditor, Oct. 21,2015

Overview of Proposed Budget

The Finance Committee of the Cook County Board began its meetings on the 2016 Executive Budget proposed by President Toni Preckwinkle with the Bureau of Finance, which provided an overview of the entire budget.  The Chief Financial Officer, Ivan Samstein, explained that the proposed budget is $4.5 billion, up from $4 billion in 2015. 

Most of the projected revenues to cover the increase of $500 million in expenditures from 2015 come from the increase in the County’s Sales Tax to 1.75% that was passed by the Board in July (to be effective Jan. 1, 2016) and the increase in revenues to the Health & Hospitals System (HHS) as a result of the Affordable Care Act and the expansion of Medicaid.  The increase in Sales Tax revenues will not be realized, however until 4 months after the start of fiscal 2016 (which is Dec. 1, 2015).  The President is also proposing to increase revenues by eliminating current exemptions from the County’s Amusement Tax so that recreational activities such as golf and bowling, along with in-home paid cable television, will now be taxed, bringing in an estimated $20 million more.

The budget proposal is to spend the $308 million increase in Sales Tax collections in 2016 as follows:

·         $270.5 million for additions to the Pension Fund to start reducing the $6.5 billion unfunded liability that is growing by $1 million/day

·         $  10.0 million for increased highway funding

·         $  25.0 million to cover “Legacy Debt” service costs

·         $    2.5 million for technology improvements (in lieu of increasing the debt obligation through financing these through bonds as has been done in the past)

“Legacy Debt” service costs refers to the costs of paying interest and repaying principal on bonds that were created prior to President Preckwinkle becoming President in 2010.

The proposed budget also eliminates 236 Full Time Equivalent (FTE) positions that are currently vacant  across a number of County offices, and 51 currently filled positions in the President’s and Sheriff’s offices. 

STAR Performance Management Issues

Each of the department heads within the Bureau of Finance also presented some specifics on each of their departments:  Revenue, Risk Management, Office of Budget and Management Services, County Comtroller, Office of the Chief Financial Officer, Office of Contract Compliance, Office of Enterprise Resource Planning, Office of the Chief Procurement Officer, and the Fixed Charges and Self Insurance Fund.  Each department had a slide presentation showing its mission, the 2015 accomplishments, the 2016 highlights (the goals the department for 2016), and the 2016 STAR (Set Targets Achieve Results performance management program) Goals and Targets.  These STAR goals, however, did not encompass the 2016 “highlights,” and many of the listed targets for 2016 were lower than the expected results for 2015, and sometimes also lower than the actual results for 2014.  The Commissioners, however, did not question these STAR goals or targets.

To see the slides for these presentations, go to http://cook-county.legistar.com and click on “Meeting Details” for the Oct. 21 9 am Finance Committee meeting, Bureau of Finance presentation.

Pension Liability and Legality of Utilizing Sales Tax Revenues to Reduce Liability

Most of the questions from the Commissioners focused on the County’s unfunded pension liability and whether the County is legally able to contribute a portion of the Sales Tax revenue to the Pension Fund. 

As explained to this observer during a meeting with Administration staff providing an overview of the budget to the League and other organizations, Illinois state law currently caps the amount of money that the County can contribute to the Pension Fund.  Cook County has always contributed the maximum allowed (in contrast to the State of Illinois), but because the cap is too low to cover the projected draw down by retirees, the County has the current $6.5 billion unfunded liability that is growing by $1 million a day.  The President committed to use a majority of the increase in the sales tax that was passed this summer to start lowering that unfunded liability. 

However, because of the cap on contributions in State law, which also specifies that contributions are to come from property tax revenues, there is a question whether the County can legally contribute additional sums from sales taxes.  The Administration believes it has found at least a temporary solution (until such time as State law can be changed) by having the County enter into an intergovernmental agreement with the Pension Board to accept the money.  This is critical because the Pension Board, through the different financial investments it can make, regularly earns a return of over 8%.  The County, through the Treasurer’s office, however, is much more limited in the investments it can make and thus would likely earn less than a 1% return.

The legality of this intergovernmental agreement is still in doubt, though it would make no sense to prevent this increase in funding.  Commissioner Gainer, and others, are concerned that no intergovernmental agreement, assuming it is legal, is yet in place with the Pension Board.  Commissioner Gainer wants to hear from the Pension Board as to whether that body sees any problems with entering into such an agreement.  

Proposed Tax on In-Home Cable TV

A number of Commissioners stated their concerns about eliminating the Amusement Tax exemption on in-home cable television.  (It was explained that Federal law prevents the County from taxing satellite television service.)  The Department of Revenue explained that the 3% Amusement Tax is proposed to be applied only to the television portion of a homeowner’s cable bill, and not to the internet or phone portions that may be part of the bill.  Commissioner Boykin was told that this explains the discrepancy between the annual household tax amount of $41.40 per year the Administration is estimating vs. the $90 (outside Chicago) to $200 (within the City) yearly costs Comcast is estimating (which presumably is based on the total cable bill). 

However, it was clear that many of the Commissioners would like to look at finding the estimated $18 million expected revenues from eliminating the cable television exemption from other revenue sources or from reducing expenditures.

Auditor

Shelly Banks, the County’s Auditor, similarly made a presentation of the Office’s mission, 2015 Accomplishments, 2016 Highlights, and STAR Goals and Targets.  Commissioner Suffredin did question why the 2016 STAR target for number of audits in the audit plan was 35 vs. the 38 in 2015 and 36 in 2014.  Ms. Banks stated that the number for 35 is what is planned now, leaving room for additional audits to be added as requested.  (In other words, the target is lower than what is expected.)

 

--Submitted by Priscilla Mims

Proposed 2015 Cook County Executive Budget Overview, October 9, 2014

On Thursday, October 9, 2014, Cook County Board President Toni Preckwinkle presented to the Cook County Board her Executive (proposed) budget for the 2015 fiscal year that begins December 1, 2014.  The Board immediately referred the Executive Budget to the Board’s Finance Committee (which is composed of all 17 Commissioners and chaired by Commissioner John Daley), which begins meeting with departments to review their individual budgets on October 16.  Hearings where the public can provide comments will be held on:

Friday, October 17, 9 am in the Cook County Board Room

Tues., Oct. 21, 6:30 pm at Markham courthouse

Thurs., Oct. 23, 6:30 pm in Maybrook courthouse

Mon., Oct. 27, 6:30 pm in Skokie courthouse

Chairman Daley indicated that while the budget meetings with departments should be completed no later than October 29, the votes to amend and approve the budget will probably not take place until mid-November.

In addition to attending the presentation by President Preckwinkle, the League obtained the 3 volumes of the Executive Budget.  (These volumes are available on the County’s web site at www.cookcountyil.gov.)  Following are some of the key points from the President’s address, as well as from the review of the budget books.

I.              No new taxes, fees, fines, or layoffs are proposed

II.            Budget increased from $3.54 billion in 2014 to almost $4 billion in 2015 (increase of $463 million); total FTEs increased by only 27

III.           Most of increase due to increase in Cook County Health & Hospitals System (HHS) budget as a result of Affordable Care Act (which resulted in significant new revenues, as well as expenditures to treat people now covered by insurance); total HHS budget is now $1.5 billion

A.            Actual subsidy from County to HHS is down slightly (by $11 million) to $164 million

B.            Currently 92,000 under County Care

C.           With expansion of County Care to include children and seniors covered by Medicare, expect 150,000 by end of 2015

D.           For first time in history, more patients covered by insurance than uninsured

IV.          8800 average daily jail population for most of 2014 vs. close to 10,000 during much of 2013; goal by next year to have average of 7500 in jail

A.            Reduction began in Sept. 2013 around time Preckwinkle wrote IL Supreme Court seeking reforms in County judicial system, particularly pre-trial services

B.            Since then, electric monitoring up and more accused getting reduced bail or released on own reconnaissance

C.           Only 7% of those in jail serving sentences; rest awaiting trial

D.           70% in jail accused of non-violent crimes

E.            Large # of cases dropped when crime is small amounts of controlled substances; but those arrested on this charge serve an average of 2 to 3 weeks

F.            Preckwinkle says now is time to instead of getting “tough on crime” to get “smart on crime”

G.           Will only see savings for County when jail population has a sustained reduction allowing for closing of wings and reduced overtime and personnel

V.            Expect additional revenues from State as a result of the Juvenile Temporary Detention Center expected to finally be coming out from under Federal Court supervision to oversight by Chief Judge by end of 2014

VI.          Pension reform for the County approved by Senate but not by House; hope House will deal with in veto session

VII.         Proposed new Bureau of Asset Management to realize revenues and savings by overseeing all properties owned and leased by County

-- submitted by Priscilla Mims


Updated 10/21/14 to correct the difference between last year's and this year's budget.

Cook County Health & Hospitals System Board of Directors Meeting, May 30, 2014

The meeting was called to order by Vice Chair Ramirez.  

Committee Reports:

      Human Resources Committee Meeting 5-16-14:  Minutes of this meeting included a report by Chief of HR, Gladys Lopes, who presented a comparison of CCHHS job vacancies filled for fiscal year 2013 Dec--April [269 ] and 2014 Dec--April [216].  The graphical data was confusing to me and I was uncertain of the  number of total vacancies  that became available or the % of vacancies filled/ time to fill vacancies. Board Chairman Carvalho requested that information be provided on the number of new nurses hired from outside the organization. Update on labor negotiations was conducted in closed session.

      Finance Committee Minutes, 5-16-14:  Update on 1115 Medicaid Waiver/CountyCare by Steven Glass, Executive Director of Managed Care. For the most recent 6 months, applications initiated fluctuate month to month, with a decrease in April. Applications submitted are slightly increased or level (7000—8000/month).  Applications approved fluctuate wildly month to month but appear to be decreasing (from 9000/month in Nov. 13 to 7000/month in April 14. 

• CountyCare members by age group are: 60-64 (12%), 50-59 (32%), 40-49 (18%), 30-39 (13%), 19-29 (25%).  49.1% are female, 50.9% male. 
• Ethnicity was not reported by 56.3% of CountyCare members. Of those reporting:  28.4% black,  12.6% white, 2% Asian, 0.4% Hispanic, 0.3% American Indian. 
• Health Needs Assessment: 59% no medical home, 51% have not seen provider in 12 months, 85% unable to obtain medications, 24% hospitalized in past 6 months,19% concerned about  “place to stay tonight”.
• Top 10 Diagnoses in descending order:   hypertension, high cholesterol, diabetes, tobacco use, general medical exam, obesity, asthma, depression, sexually transmitted disease.   

The number of CountyCare prescriptions filled has increased over the last 12 months from 5379/month to 125,799/month requiring a transfer of funds ($13,330,817) to the Managed Care Dept. to cover the increased expenditures with average per member per month drug cost of $95.     

Board Chair Carvalho noted that as patients become eligible for Medicare, there is some data that CountyCare/Medicaid loses these patients who are free to use any medical provider. A strategy of retention should be considered. He also asked Steven Glass and Dr. Shannon how the System would be able to provide quality care at a reduced cost per person. They indicated that now that they have identified “high risk” populations from the above data on diagnosis, pharmacy use and health needs assessment, they can focus on preventative care to these groups.

    

CCHHS Chief Financial Officer presented a Financial Report:

There was a net operating loss year-to-date as of 1-31-14 of $49,447,000, but when added to the non-operating revenue, the net loss was reduced to $17,924,000.  CCHHS cumulative patient income breaks down by source as: Medicaid 68% (43% of which is CountyCare/1115 Waiver), Medicare 23%, Commercial 8% and Self-pay 1%.

Quality and Patient Safety Committee Minutes, May 27, 2014:  Joint Commission survey of the Ambulatory and Community Health Network of Cook County cited a number of deficiencies which are being promptly addressed and corrective action reports have already been submitted to JCAHO.

  

Dr. Michael Kelly, Chief of the Division of Neurology, provided a presentation on a Stroke Program.  For CCHHS to become a certified primary stroke center a number of upgrades to the radiology suite, ICU and specialist physician/provider staffing 24/7.

Director Lerner asked how the CountyCare population would be managed for stroke prevention.  Dr. Kelly responded that perhaps the incidence of stroke could be cut in half if all of its patients were within range with their blood pressure, diabetes and cholesterol, and did not practice risky behaviors with drugs.  He stated that the mean age of stroke patients at Stroger Hospital is 58 and nationally 70, that 12% of Stroger stroke patients are under the age of 45.

Dr. Ukoha, President of the Stroger Medical Staff reported that the creation of an internet portal for use by patients to access their medical records is being implemented. He raised the concerns of the medical staff regarding proposed changes to the County’s pension plan which is being discussed by legislators in Springfield.  The changes may lead to poor retention of physicians. This concern was echoed by Dr. Wakim of Provident Hospital .

Contracts and Procurement Action Items : Discussion on a new contract for janitorial cleaning management service by the Board indicated that the previous contract was not acceptable resulting in  several JCAHO deficiencies at the Community Care Clinics related to janitorial services.  

Vice Chair Ramirez indicated that he would be working with Dr. Fagen, Chief Medical Officer, Department Chairs and Clinics on the budget, particularly the “pension/early retirement issue”.

Interim CEO of CCHHS, Dr. Shannon reported:  
The Illinois Dept Public Health inspection of the dialysis unit led to a 3 year re-certification.

 
 Fresh produce purveyors will be providing produce “at cost” to the cafeterias and CountyCare Clinics to improve the diet and health of patrons. 

 Dr. Shannon introduced and acknowledged the physician of the year, the nurses of the year and resident’s research day winners who were presented to the Board.

The meeting adjourned to a  closed session.

Submitted by Susan Kern

Cook County Board Meeting May 21, 2014

A great deal of time was spent by the commissioners acknowledging the life and death of Richard Elrod, former sheriff and judge for the Circuit Court of Cook County, Mother McAuley’s Science Bowl Team, the winning chess team from Marshall HS and Faraday Elementary School, and a large number of Silver Star recognitions to honor wounded and ill members of the armed forces.

Public testimony at the beginning of the board meeting included a large number of employees from Stroger Hospital commenting on proposed pension cutbacks. The comments were very impassioned and the audience was very vocal in support of the speakers.

A proposed resolution to form a task force to research, develop and introduce legislation for legalizing and regulating cannabis use for adults in Illinois was moved to legislative committee.

There was discussion regarding a bill in Springfield, SB 2778, which would change the length of time that a property can be purchased by paying the taxes from the current 12 months to 4 months. The concern is that properties will be sold too quickly before current owners have an opportunity to pay the back taxes and then will be further penalized by large penalties imposed by the new buyers.

 Submitted by Laura Davis and Jura Scharf

Departmental Review Meetings for 2014 CC Proposed Budget: Monday, Oct. 28

Public  Hearing, State's Attorney's Office

The meeting began with a Public Hearing on the budget. There were 26 public speakers. First was Lawrence Msall of the Civic Federation and he stated that his organization's analysis of the proposed budget is available on their website at www.civicfederation.org. He raised at least 2 concerns – one being the uncertainty of the Medicaid revenue within the HHS budget, and the other being a needed long term plan for dealing with the pension issue which soon will be critical. Karin Hribar, LWVCC Co-President, gave testimony commending the board for improving the budget process in line with recommendations that the League has provided over the past several years. Her testimony is available on the LWVCC website at www.cookcounty.il.lwvnet.org.  Veterans organizations were well represented as well, and requested additional money for the Veterans Assistance Commission. The remaining speakers represented various non-profit and business organizations and were for the most part in favor of the budget and commended the President for various programs and for not introducing any new taxes.

Departmental reviews continued with Anita Alvarez, CC States Attorney, presenting for her office. She first reviewed the achievements of her office citing their focus on gang and gun violence that are their most significant issues and require the bulk of their budget. She stated that over the past five years they have had staff reductions due to budget constraints while their workload has continued to increase. Prosecutors have very heavy caseloads, a factor in the length of time required for adjudication of cases. She also stated that she does not have adequate staff to provide coverage for misdemeanor court at all times. She had requested funding for 34 new positions and the proposed budget includes funding for 12 new positions. 

Ms. Alvarez said that her office wants to work towards President Preckwinkle’s goals of decreasing the jail population by seeking alternatives to incarceration. All parties involved need to come to the table to work on the issues of bond court, diversion programs, and treatment courts. She stated that every part of the justice system needs to have the resources to hold up their end of the system so they can do what is necessary to make the justice system work better. 

Commissioner Suffredin commended Ms. Alvarez for her endorsement of a holistic view of the concerns and asked if she could put a value on the savings from the diversion programs. She stated that $15 million savings had been realized in all the diversion programs. 

Commissioner Fritchey wanted to know why only 8% of those arrested were being released on I-bonds while the numbers for NYC were 70% and for Wash. DC were 80%. He asked that since the SA’s provide information to the judge so that a decision can be made about bond, what can be done to ensure that people are not being held in jail who could be out on bond?  He also stated that the number of pre-trial detainees in the CC jail is 50% higher than in other major systems and that $44 million had been paid for cases that were eventually dropped. Ms. Alvarez said that she was not certain about his numbers but that the efforts to work on these issues will continue. 

Commissioners also wanted to know if the ticketing for marijuana offenses had made a difference in the workload for her office and she stated that there did not seem to have been a significant impact.

Cynthia Schilsky, LWVCC Observer

Cook County Board Meeting, December 4, 2012

The Meeting was called to order at 10:15 am by President Toni Preckwinkle.  All commissioners except Beavers and Tobolski were in attendance.  A delegation from Russia is in the United States to observe government meetings and was in attendance.  Commissioner Gainer commended these elected officials for several reasons including the fact that they do not collect a salary.

*Special Drivers License for Undocumented Immigrants:  Over the weekend, the League asked its members to call their Illinois legislators to urge support for allowing Illinois to provide temporary visitor driving licenses which would then allow drivers to obtain insurance.  On Thursday, The Cook County Board overwhelmingly passed a resolution in support.   It has the backing of a wide range of supporters including the Insurance and Health Care Industries and the Sheriffs and Police Chief Associations.  The Bill is expected to pass and be signed into law by the Governor.

* Implications of State Pension Reform:  Prior to the meeting, Commissioner Gainer held a Finance Subcommittee on Pension to discuss the possible implications of pension reform legislation that may be discussed by the Illinois General Assembly.  Over the past ten years the Cook County Pension Fund has dropped in its funded status from 88.8% to its 2010 valuation of 60.7%.

    

*The Finance Committee:  The controller gave a hopeful revenue report.  The County’s revenues are up $9.8 million over 2011 including sales tax which is up $8.8 million even with the reduction in the tax rate.  Recovery of patient costs at the Health and Hospitals System continues to be a major drag on the bottom line.

* Cost of Phone Service for Inmates:  The Reverend Jesse Jackson commended President Preckwinkle for working to reduce the very high cost of collect calls for inmates.  He asked for open hearings to learn more about what best practices are recommended.  Currently the cost per minute is over 40 cents.  The Administration has recommended reducing that to 23 cents per minute.  As a comparison, inmates in the Federal prisons pay 7 cents.  The jail holds a large number of women inmates, many with children.  Studies show that the ability to stay in touch lowers recidivism rates upon release.

*Other News of Interest:  The Board gave the Department of Risk Management the authority to resolve Workers Compensation Cases not to exceed $25,000. Commission Simms in particular but also Commissioners Murphy and Collins expressed concern with previously granted approval to give increased procurement authority to the Purchasing Department.  Two resolutions were referred back to committee.  This subject will likely come up again as the two resolutions were for rather routine purchasing authority.  The Cook County Board will meet on a 3 week schedule instead of a two-week schedule beginning "soon."  The number of meetings will be reduced from 24 to 17.

The meeting was adjourned at 12:40 p.m.  Submitted by:  Diane Edmundson