On Tuesday, dozens of local leaders and community members gathered for the 2025 State of Kane County address, at which Kane County Board Chair Corinne Pierog discussed the county’s financial outlook and future projects, and county staff members presented on their departments’ work.
The event was put on by the local chambers of commerce in Batavia, Geneva, St. Charles, Elgin, Elburn, Bartlett, Sugar Grove, Greater Montgomery and Northern Kane County and held at Eagle Brook Country Club in Geneva. It was the first in-person State of Kane County address, per a county spokesperson, since the pandemic.
In addition to discussions about county departments’ work and future county projects, Kane County’s financial outlook and current budget shortfall were addressed by Pierog on Tuesday.
Kane County is currently facing a budget shortfall in its general fund for the fiscal year beginning Dec. 1, according to past reporting.
Since 2023, the county has dealt with gaps in its annual budgets by dipping into its cash reserves, according to past reporting. Last year the county balanced its budget with roughly $27 million in reserve funds.
Per the county’s most recent audit, the general fund’s cash balance was around $55.6 million as of Nov. 30, 2024. The county aims to keep at least three months’ worth of operating expenses in cash reserves, which would amount to about $34.7 million.
Assuming revenue and spending remain level, continuing to use reserve funds to balance the annual budget would leave the county on track to dip below its required 90-day reserves in 2027, according to past reporting.
As a result, the county board is currently determining how to close the gap in its budget for next year.
A referendum question in the April 1 election asking voters to approve a 0.75% county sales tax to pay for public safety expenses, which was projected to generate more than $50 million in revenue for the county annually, was touted by some as a possible solution. But it was overwhelmingly shot down by voters.
At Tuesday’s State of Kane County address, Pierog outlined some of the factors driving up spending in the county and contributing to the county’s budget shortfall.
She cited the SAFE-T Act, which went into effect in 2023 and includes, among other provisions, the end of cash bail statewide, as having increased things like staffing needs, hours of operation and workflow and thus putting pressure on the general fund. She also noted higher expenses in the county, due to things like rising health insurance costs and higher wages.
But now, with rising expenses, the county’s cash reserves are dwindling, according to Pierog’s presentation on Tuesday. And with no new sales tax set to generate additional revenue, the county is now looking to make cuts.
The county’s 2025 budget was $416.6 million, $138.9 million of which was allocated to the general fund, the fund that is experiencing a shortfall, according to past reporting. With a projected revenue of about $121 million for the general fund next year, the county board is asking the county’s departments and offices to cut their budgets by roughly 8% from last year’s figures.
The county is still anticipating the use of some reserve funds — around $3.5 million to $5 million, Pierog told The Beacon-News on Tuesday — to balance this year’s budget, but she believes this won’t cause the county to dip below its 90-day reserves.
Pierog said that the county’s projected $121 million in revenue for the general fund includes the money it would get from a property tax levy increase, though that measure has not yet been voted on by the board.
According to Pierog’s presentation, the county’s budget receives $60.8 million from the property tax levy, including last year’s increase by 3.4% based on the Consumer Price Index, or CPI, which generated around $2 million. Previously, the county hadn’t increased the property tax levy, except to account for new construction, since 2013, according to past reporting.
The county’s finances also came up in the questions asked at Tuesday’s event. Responding to a question about the budget gap following the defeat of the sales tax referendum question, Pierog said she sent out a letter on Monday to the county elected officials asking them to cut their budgets by roughly 8%.
“It’s going to be a different reality here for Kane County,” Pierog said about the possible impact of budget cuts on, for example, the State’s Attorney’s and Public Defender’s offices. She said those offices are “trying to be as fiscally responsible and as conservative as (they) can.”
Asked whether there is the possibility of bringing another tax referendum question to voters in the future, Pierog said it was dependent on the county board.
The questions at the event also addressed population growth with regards to school districts and infrastructure, and how the county will balance this growth with maintaining natural areas and farmland.
Pierog said that “it’s really up to the municipalities” in terms of annexing property and providing the necessary infrastructure for it, but said the county can provide resources and guidance. As far as farmland preservation, Pierog talked about the growth of solar fields, and spoke about the need to “continue to cultivate the next generation of farmers.”
County staff members also spoke at the event to discuss the work their departments do in the county.
Mark VanKerkhoff, the director of the county’s Development and Community Services Department, talked about initiatives his department has undertaken, like being part of an effort to get a portion of the Fox River designated as a national water trail.
The director of the county’s Environmental and Water Resources Department, Jodie Wollnik, discussed efforts to protect the county’s water supply, which she said is mainly from groundwater.
For example, Wollnik said the department works with local chambers of commerce and private business owners to encourage them to minimize their use of salt on private property, parking lots and roads because it contaminates shallow water systems. She said the department has also been part of the installation of a solar field at the Kane County Judicial Center and runs county recycling events.
Michael Isaacson, the executive director of the county’s Health Department, said the Health Department’s work includes, for example, investigating infectious diseases, supporting families with young children and looking into lead and septic issues.
Among other programs, Isaacson highlighted the department’s Behavioral Health 360 initiative, which provides Kane County residents with resources and information on things like stress management, substance use, emotional well-being and cultural competence, per its website.
The county’s Division of Transportation was also highlighted by Deputy Director Tom Rickert, who spoke of the budgetary concerns county transportation is currently facing after the county board recently decided to reallocate some of the county’s Regional Transportation Authority sales tax funds from transportation to public safety.
Rickert said this change “removes (the Division of Transportation’s) ability to go after grants” and is set to cause a $3 million revenue shortage annually that department officials are not yet sure how they’re going to solve.
He also cited the RTA’s current fiscal cliff situation and the possibility of service cuts within the county, and the county losing some of the RTA sales tax it receives, which Pierog on Tuesday said could be around $27 million.
Pierog also spoke about the work done by Kane County Animal Control and the county’s Office of Emergency Management.
Looking to the future, Pierog said the county is “taking very modest steps because of (the county’s) stretched budget.”
She outlined a few of the county’s future projects, like a $2.8 million county Health Department building in Elgin, which Pierog said was paid for with savings from the Health Department. It could be open as early as November, she said, with the aim of being fully operational in 2026.
The county is also considering instituting a paid internship program, pending funding from the county board, Pierog said. She said that “some people feel that this is not (an) appropriate use of public dollars” but noted that the money to pay for it is planned to come out of the Grand Victoria Riverboat Fund, which provides a portion of the annual net operating income of the Grand Victoria Riverboat to the county.
As far as other initiatives, Pierog said the county plans to use riverboat funds for a garden commemorating the founding of the United States, and pointed to the strategic plan, the county’s first since 2006. The strategic plan was recently on the table to be cut to save money in the budget, according to past reporting, but is currently set to continue, potentially funded by riverboat funds.
mmorrow@chicagotribune.com
