County finances heading south
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Daily Southtown
By Jonathan Lipman, Staff writer
May 16, 2006
Cook County revenue continues to fall and while budget officials
say the county won't go broke this year, some commissioners
are getting worried.
"The Cliffs Notes version is we're running out of money,"
said Commissioner Gregg Goslin (R-Glenview). "We're going
to have to make some difficult decisions in December.
Earlier this month, budget officials said Cook County was about
$16 million below its estimated revenue for the first four months
of its $3 billion 2006 budget.
Things are not getting better after another month of data, Comptroller
Walter Knorr said Monday during a meeting of the county finance
committee.
Hospital revenue, the biggest hole in the budget, was another
$3 million short in April and now is $26 million behind. Cigarette
tax revenue was $4 million behind in April.
Finance committee chairman John Daley (D-Chicago) said new jail
guards, increases in salaries and a decrease in federal health
care money leaves a minimum $163 million hole in the budget
next year.
If employee unions win any major concessions in their contracts,
which are under negotiation now, that number could grow, he
said.
"The contracts ... unless we fund it properly, with new
revenues, that's where a problem could occur," Daley said.
He said a hole that big could mean tax increases "or else
some serious cuts throughout the county."
The county also has to make up an extra $20 million decrease
in Medicaid money from the state.
They county got that money last year as a last-minute bailout
that allowed commissioners facing re-election to approve a budget
without a property tax increase. But commissioners were reminded
Tuesday the cash was not an overall increase in funding, but
actually an early payment that would otherwise be paid to the
county in 2007.
"That's no surprise," Daley said. "That number
was thrown out at last year's budget."
Knorr refused to give estimates of where the county will wind
up at year's end, but said there is $464 million in the bank,
and the county is in no danger of going broke.
But Knorr also signaled he was skeptical of claims from hospital
officials that revenue from patient fees would improve. He said
those numbers have to be "watched like a hawk."
"We're walking a fiscal tightrope," Knorr said.
Health bureau chief Daniel Winship said revenue was low in February
and March because the county allowed contracts with its billing
companies to lapse.
"I think we'll make (up the gap) because I think the money
is there," Winship said.
But those billing contracts were renewed in April, and fee collection
still was less than budgeted. Winship said he could not comment
on that because he had not seen the April figures.
