County seeking $200 mil. loan
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Chicago Sun-Times
By Steve Patterson, Staff Reporter
July 8, 2006
Twelve weeks ago, Cook County chief of staff James Whigham
-- running the county's day-to-day operations -- flatly denied
the county was in such dire financial straits that it would
have to borrow money to make ends meet.
Friday, things changed.
For the first time in more than a decade, Cook County must borrow
to help pay the bills.
According to an ordinance delivered to commissioners, they will
be asked Wednesday to allow the county to seek a $200 million
loan.
"We were arrogantly told everything was OK," Commissioner
Mike Quigley said. "It wasn't."
The request from county chief financial officer Thomas Glaser
outlines terms that call for the county to pay the loan back
over 18 months, at 10 percent interest.
That will allow for "timely payment of general county expenses,"
Glaser's request says.
Multiple county contractors have been grumbling in recent months
about delays in being paid.
Glaser's request cites delays in the county receiving its share
of state funds for general county and hospital expenses.
If approved, the $200 million would represent about 6.6 percent
of the county's $3 billion budget.
Titanic comparisons last month
County officials did not respond to requests for comment, but
just last month, Glaser compared county finances to the Titanic,
telling commissioners he sees "icebergs floating"
and "I have my life preserver on."
The request to borrow funds comes three months after Crain's
Chicago Business reported the county was asking local banks
about a loan -- and Whigham scoffed at the report.
"Either [officials] didn't want to be totally candid with
us or they didn't see it coming, which would be an even greater
concern," said Commissioner Peter Silvestri. "Nothing
good comes from this."
The request is likely to embolden a county board already feeling
more independent in the wake of John Stroger's resignation last
week as board president.
His resignation, effective July 31, prompted a flurry of filings
by commissioners, demanding greater financial accountability
-- most of it aimed at the county hospitals.
Last month, records showed the bureau of health was falling
substantially short in revenues, driving projections of a county
budget deficit to more than $88 million.
