With current revenues flat and an election on the horizon, Cook County Board President John Stroger unveiled a 1998 county budget leaning heavily on the local economy remaining strong, savings from job cuts and cash left over from last year.
Stroger’s proposed $2.4 billion budget–a 6.3 percent jump over last year–doesn’t contain any increase in taxes or any new fees. But it promises an additional $40 million for public safety programs, allocating funds for new courtrooms, domestic violence programs and initiatives for drug offenders.
Addressing the county’s huge payroll, Stroger claimed $26 million in savings from an early retirement program that will eliminate nearly 300 positions. His spending plan also cuts 500 positions at Cook County Hospital, although a number of workers in those jobs will be shifted to other clinics or hospitals.
The budget also includes a 3 percent pay increase for most county employees, in addition to salary bumps tied to the number of years an employee has with the county.
While Stroger and county finance officials attributed the no-taxes budget to good management, they also acknowledged a stronger than expected economy–and $113 million left over from last year–helped out.
The county, for example, collected $25 million more in sales tax than had been anticipated.
But Stroger discounted any notion that this budget, which will not increase property taxes and lacks more of the $42 million in use taxes that angered voters last year, was motivated by the upcoming primary.
“Right now, I’m not into the election mood,” Stroger said. “I’m into the mood of getting my budget approved. This is not an election day budget.”
While Stroger read an 8-page budget address to polite applause from board members assembled to start discussion, there was an awareness that the county still faces serious financial questions because the cost of providing criminal justice and health systems continues to rise.
The proposed 1998 budget contains $821 million for courts, jails and law enforcement costs, an increase of $100 million since Stroger came into office. Health costs add an additional $638 million next year.
Despite those steep increases, Stroger knows he can’t raise property or sales taxes in the near future after the public relations pummeling he took over his failed effort to raise the county’s real estate transfer tax.
The lack of options left some analysts worried what happens to the budget if the economy sours next year.
Lance Pressl, president of the Civic Federation, a government watchdog group, said the budget plan “lacked a long-term strategy to bring expenditures in line with revenues. I think (Stroger’s) budget is based on the status quo. We’re not confident the status quo will remain.”
Administration officials say their steps to economize include a $3 million drop in health spending next year, a $12 million savings in contracts involving construction of a new County Hospital and millions more saved through refinancing debt.
“We’ve tried to save money in every area of this county government,” Stroger said.
But Republicans questioned Stroger’s claims that he was making county government smaller and more efficient.
“This budget is $140 million more than the 1997 budget,” said Republican Richard Siebel. “The president really hasn’t addressed the entire issue of downsizing the county operation.”
Commissioner Carl Hansen wondered how the Stroger administration could claim it was pursuing efficiencies, all the while seeking $69 million for Provident Hospital, “which on any one day is one-quarter full.”
