No Lack of Input at Second Public Hearing on Proposed Budget

2016 Budget Public Hearing:  Maybrook Court House, Maywood,  November 5, 2015,  6:30 PM.

The hearing began on time and had 12 commissioners present. The hearing was chaired by Comm. Boykin. 

Approximately 25 people spoke, some alone and some on behalf of groups with many people standing at the podium.
Many people spoke out against the e-cigarette tax, one even claiming that such a tax would increase the amount of people who smoked regular cigarettes. One speaker was the owner of a “Vape” shop and worried about the loss of business that might occur. Also noted were several speakers who wanted more money for Restorative Justice programs. A group called Peacekeepers handed out sheets of statistics to the commissioners about lowering recidivism rates. These folks were very polite and thanked the board for the $500,000 donation to their group. Conversations about budget balancing ensued. Finally, Reclaim Chicago spoke about the Responsible Business Act. It basically taxes employers who pay less than a fair wage.

   

Some other interesting speakers included the Mayor of Lyons who complained about the 3% Amusement Tax hurting seniors the most. The Commissioners thanked this mayor profusely for the recent regulations placed on the gun shop in Lyons. Other speakers complained about the same tax. Comm. Daley stated that this tax probably would not happen.

A doctor from Access to Care based at Loyola Medical Center in Maywood asked for more funding. Some discussion ensued about treating illegal immigrants. Comm. Suffredin said that he would work with this program to try to come up with a solution to this problem. Others complained about county taxes treating illegals. Comm. Garcia said CCHHS has a mission to treat everyone equally and doctors have an oath to treat the sick.

The SEIU (state unionized workers) speaker complained about cutting the grafitti removal team because it has been very successful. A speaker from Safer Foundation thanked the board for its support in the past. Several cancer patients thanked the board for County Care and the expansion of Medicaid. Many had had no health care at all until 2 years ago.
 

A huge group from TASC (Treatment Alternatives for Safe Communities) came to the podium. They explained their mission and looked forward to working with the State’s Attorney's Office and the Jail by expanding diversion programs. Another speaker asked for more county facilities to be compliant with the Americans with Disabilities Act. She complained about both downtown county buildings and the difficulties wheelchair bound people have negotiating some of the doors and elevators.

   

The most emotional part of the evening came when one speaker (calling himself “just a taxpayer") complained about the increasing sales tax which makes Cook County have the highest sales tax in the nation. Comm. Sims said that it was a fair tax because it hits everyone who shops in Cook County evenly. She became emotional when she told everyone how difficult it was to balance this budget when all groups are asking for more money.

--Submitted by Jan Goldberg

Commissioners question Cook County's salary increases while raising taxes and fees

Cook County Committee & Board of Commissioners’ Meeting Wednesday, October 28, 2015

The Board meeting was called to order at 11:15 a.m. but the actual conduct of business started at 1:50 and ended at 2:50.  This writer found the meeting process one of the most confusing observed.  Perhaps it had something to do with the number of budget hearings that Commissioners attended in the days prior to the formal Board Meeting and the inability to get the morning Committee meetings concluded on time.

Major Discussions/Decisions of Note are: 

1. Resolution #15-4297 passed out of the Finance Committee and was approved by the full Board.  It is a contract with Blue Cross and Blue Shield for $884,195,500 over a 3 year period ending in 2018. This covers 22,000 employees and 33,000 dependent lives and includes all Cook County government employees, the Forest Preserve, and the Housing Authority.  By the end of the contract, employees in total will pay for approximately 10% of the total cost of insurance.  Currently the Health and Hospital Systems employees are included in the county’s PPO network but not the HMO.  They are negotiating for the HMO [in competition with HHS’s County Care]. 
2. Resolution #15-5145 changing the Medical Examiner Ordinance, passed out of the Finance Committee and was approved by the full Board.  In addition to language updates [dropped the anachronistic Office of the Coroner reference], it gave authority to the new Medical Examiner to enter into cooperative agreements with other agencies having laboratory facilities without going to the Board for permission, and changed the accounting method for the fee fund.  The Board did ask for an email notice when entering into agreements.
3. Resolution #15-6190, proposed by Commissioner Fritchey, was sent to the Finance Committee.  The resolution calls for a county-wide referendum to abolish the office of the Cook County Recorder of Deeds.  The CC League of Women Voters spoke in favor of sending the resolution to committee to give the public time to review and comment.  We will closely follow this resolution. 
4. Resolution #15-5847, authorizing the Sheriff’s office to appoint a Cook County Gun Violence Coordinator was passed out of the Criminal Justice Committee and approved by the Board.  

Other Board Business

1. The CFO of HHS reported that as of the end of the 3^rd Q, HHS has $14 million budgeted surplus.  It is waiting for a $100,000 million Federal and State pass through from the State. 
2. County Clerk David Orr asked for and received a transfer of funds to purchase electronic pollbook computer equipment to serve precincts larger than 1,000 registered voters. 
3.  State's Attorney, Anita Alvarez, received approval to renew a grant for 2 staff members to work on a uniform bond court screening process thereby allowing for diversion into treatment courts and decreasing the time offenders spend in custody. 
4. Alvarez also received a 3-year $900,000 Federal grant to strengthen the response to victims of sexual assault, domestic violence, dating violence, and stalking who are enrolled in colleges located in Cook County including Chicago. 

Public Speakers and Consent Calendar Highlights: 

1. The Board saluted two Chicago officers that save a baby’s life by foregoing protocol and driving the infant directly to the hospital rather than waiting for an ambulance. 
2. The Rev. Jesse Jackson was honored on his 74^th birthday for his civil rights and community work. 
3. Representatives of the Black Funeral Directors Association requested a reconsideration of the ordinance authorizing a charge of $500 to Funeral Homes that pick up deceased individuals and deliver them to the County Morgue because families cannot pay the funeral home for a burial and the funeral home is not legally able to store bodies.  It was noted that the storage fee was imposed to discourage use of the Medical Examiner’s office which has limited capacity.  Commissioners Boykin and Steele promised to continue to find a solution for the Funeral Directors as they are caught in the middle.  One suggestion is that the family can gift the body to the Anatomical Society and bypass the ME’s office.  Another:  When the individual dies at home, rather than calling a Funeral Director, call the police to pick up the body and deliver it to the morgue.

Finally, there was much discussion on the number of higher than expected salary increase percentages for several individuals and departments.  Several Commissioners asked the HR Department to prepare a list of those employees receiving a salary increase higher than the standard 6.5% combination of cola and step.  It was noted that two individuals received $31,000 and $36,000 respectively and among three individuals the raises totaled more than $200,000. The point was raised because of the recent Sales Tax increase and the proposed increase to the Amusement Tax.

Submitted by:  Diane Edmundson, Observer

Reviewed by:   Laurie Morse, Observer

Opposition to Tax on Cable TV and E-Cigarettes; $2 Million for Restorative Justice; Tax on Corporations Paying Less than Living Wage; and Lost Animals Raised at Public Meeting

2016 Cook County Proposed Budget:  Public Hearing at the County Building, November 3, 2015

Lawrence Msall, on behalf of the Civic Federation, after complimenting the County government for the actions taken with regard to criminal justice reform, health care, and rationalizing the workforce, said that with regret, the Civic Federation could not support the proposed budget. The opposition was mainly to the 1% increase in the sales tax that the Board had approved this summer, and on which this budget is based.  The Civic Federation cited the competitive disadvantage the Board was creating for the many businesses in Cook County, particularly those on the County’s borders. 

However, in response to a question by Commissioner Suffredin, the Civic Federation thinks the $30 million in additional taxes and fees that are part of this budget proposal are reasonable.  This was clearly not what the Commissioner wanted to hear, as he expressed his concerns about these revenue proposals.   Subsequently, the Chamber of Commerce expressed its opposition to extending the amusement tax to (or rather eliminating the current exemption for) cable television.  There were several other speakers similarly expressing opposition, as well as one speaker in favor.  Chairman Daley stated that in talking with the individual Commissioners, it seemed unlikely that the Board would pass the expansion of the amusement tax, so the Commissioners will have to come up with proposals to cover the $18 million projected from this tax, either through other new revenues or through cost cuts.

Several speakers also voiced opposition to the proposed tax on E-cigarettes. 

Several speakers called on the Board to increase the $500,000 for restorative justice programs in the budget to at least $2 million. The dialogue between a couple of the Commissioners and one of the speakers got a little heated at one point, as the Commissioners explained that they supported more money for restorative justice programs, but also were faced with trying to balance the budget.  The speaker argued that if the County would stop spending so much on the jail, it could fund restorative justice, which would do much to reduce the jail population.  Commissioners pointed out that they have a responsibility to see that there is sufficient money for the jail in order to protect the public from those committing crimes.

Several speakers spoke in support of a proposed ordinance (the “Responsible Business Act”) that would impose a tax on employers who had 750 or more employees making less than a “living wage.”  Chairman Daley pointed out that this proposal is not part of the budget, and has been referred to a Board committee for separate consideration.

Several speakers also urged that the focus of the Animal Control Department of the County be expanded to include helping owners find their lost pets. 

One speaker complained about the Health & Hospitals System treating undocumented immigrants.  Chairman Daly stated that the mission of the County’s health system has always been to treat everyone.

Next Steps

The Finance Committee finished its last department meeting on Nov. 2, and has one more public hearing at the Maybrook Courthouse at 6:30 pm on November 5.  Chairman Daley indicated that the deadline for the Commissioners to submit amendments to the proposed budget would likely be next week, but had not been finalized.  Check on the budget calendar.  A meeting of the Finance Committee to vote on these amendments and the resulting budget will then be held, followed by the Board meeting to vote on the budget, as amended.

-- submitted by Priscilla Mims, League Observer

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

Cook County Board Meeting and Committee Meetings September 9, 2015

The Committee meetings for Wednesday, September 9 were as follows: Labor Committee, Rules Committee, Finance Committee, Zoning and Building Committee, and Criminal Justice Committee.  

Criminal Justice Committee: 

Proposed Ordinance 15-4648 sponsored by Commissioner Boykin, this ordinance is to appoint a Cook County Gun Violence Czar to lead a Cook County Gun Violence Task Force.  The Task Force, made up of representatives from other County officials, such as the Chief Judge and Sheriff, along with Commissioner Boykin and another representative appointed by President Preckwinkle, would be charged with holding hearings and gathering information in order to submit recommendations to the Board within 6 months. Boykin withdrew this ordinance and plans to work on it further with the support of other commissioners.

There were two speakers who spoke in favor of this ordinance. Commissioner Boykin reiterated the fact that there is too much violence. He stated that 80% of African Americans are victims of gun violence even though they make up 25% of the population.  He also stated that there could be an allocation in the budget of $200,000 to finance the Task Force.

There was much discussion as most of the Commissioners had reservations concerning this ordinance.  Many questioned whether the money could be found within this fiscal year.  In addition, they felt that more community support, education, parental support and jobs are needed to control violence. Zelda Whittler, Undersheriff, was asked to comment. She stated that they are working with many law enforcement agencies including law officials from the city and suburban areas to address this issue. She stated the Sheriff would participate in the Task Force.

Proposed Resolution 15-4728, sponsored by Commissioner Boykin, calling upon the Justice Advisory Council and the Department of Procurement to report to the Cook County Board of Commissioner on the scoring criteria for the Justice Advisory Council’s Violence Prevention Grant Awards and the role played by community violence levels in determining violence prevention grant recipients. Resolution was approved.

Please note all reports referred to are available on the Cook County web site. Go to http://cook-county.legistar.com and click on “meeting details”.

General Meeting:

Public Testimony: Reference to item 155308 and 15-5311 (proposed ordinance on Cook County Service Occupation Tax). Speakers stated they were opposed to a tax increase stating that $10 an hour is too little to live on making this tax increase difficult for them. They want a fair wage of $15 an hour.

The following were items of interest:

15-5141, proposed by Commissioner Boykin, calls upon the Cook County Medical Examiner to modify its reporting of Gunshot homicides to include specific classifications of victims as to Hispanic, Latino or Spanish origin.  In other words not just list them as Spanish but their origin. This was withdrawn because the medical examiner already has the software to do this.

15-5308 and 15-3011, proposed by Commissioners Fritchey, Boykin, Schneider and Suffredin to roll back the newly approved sales and service tax of 1.75% after 1 year to 1.25% on Jan. 1, 2017, and back to 0.75% on Jan. 1, 2018.  Was referred  to the Finance Committee.

15-5262 presented by John Jay Shannon, MD, Chief Executive Officer. Cook County Health and  Hospitals System (HHS), proposed  HHS preliminary budget for 2016 fiscal year. During the Public Testimony portion of the meeting, there were many speakers, doctors and nurses who spoke in support of retaining the in-services Pediatric Unit at Stroger Hospital.  Dr. Shannon stated that there has been no decision to close the Pediatric In-Services Unit at Stroger, but a consolidation of services, such as combining the Pediatric Emergency Room with the regular emergency room, will happen. He stated that with advancements of care and access to ambulatory care such as “Kid Care,” there are opportunities for patients receiving care closer to home.  Dr. Shannon stated that there is constant review as to whether the services being offered throughout HHS are what are needed or whether other services would better fit the needs of those needing care.

Commissioners Gainer and Sims had concerns about the cancellation this summer of the contract with the current administrator of Medicaid eligibility for HHS.    The current administrator is Illinicare, which has its own managed-care program and which is in competition with HHS and its managed-care program, County Care, for Medicaid recipients.  Dr. Shannon said that while there was no evidence of impropriety on the part of Illinicare, there was concern for the future.  Dr. Shannon said that Illinicare will stay on through early 2016, providing sufficient time to find a replacement and transition smoothly.  This item was referred to the Cook County Board’s HHS Committee.

15-5225,  submitted by Clerk David Orr,  seeking approval to eliminate 74 voting precincts in suburban Cook County, changing the number from 1,673 to 1,599 a reduction of 4%.  The estimated savings in 2016 is $200,000.  This was approved.

Also approved at the Board Meeting were the following items that the Board’s Technology Committee, which met the day before, had voted to recommend to the Board:

15-4067, a contract for $30 million for an Integrated Tax & Mass Appraisal System, to integrate the functions of the Recorder of Deeds, Assessor, Board of Review, Clerk, and Treasurer relating to the property tax system.

15-4318, a $66 million contract for an E-Business Suite platform to allow for process improvements and analytics for finance and human resource functions across the County.

15-4488,  which amends the contract with the existing provider of telephone service at the County Jail to lower the costs for detainees to make calls.

The meeting ended around 3:30

Respectfully submitted

Nancy Marcus and Priscilla Mims.