DuPage chairman candidates wary of revenue projections

Neither candidate vying for the DuPage County Board chairman's seat in November has much faith in the county's current budget.

Republican nominee and state Sen. Dan Cronin calls it "almost irresponsible," while his Democratic counterpart, Carole Cheney, described the plan that requires a 9 percent spike in sales tax revenue as "overly optimistic."

While the success of the budget hinges on sales tax revenue bouncing back, the county's finances won't collapse if that doesn't happen. That's because the county hasn't committed to spending more than $13 million on capital improvement projects. The capital funds could plug any financial shortfall created by a continued stagnation of sales tax receipts.

Before the end of the fiscal year in November 2009, county finance officials were projecting a need for sales tax revenues to jump 4 percent this year. But the actual sales tax revenues came in less than anticipated and are still below projections in the first two months of this fiscal year.

It would be the second year in a row capital projects have been postponed if the sales tax revenue doesn't come in as projected. By forgoing capital spending last year, the county board saved almost $10 million. Some of the savings came from cost cuts elsewhere, but the chairman candidates aren't keen on the idea of going a third year using capital funds as a backup to lackluster sales tax receipts.

"I would suggest we hunker down and develop a crisis budget," Cronin said. "We ought to be looking at some alternatives in the event that revenue projections fall short."

He contends that since almost every other taxing body in the state is forecasting no growth in sales tax revenue, DuPage should do the same.

"The county should not have a recovery-based budget until there's an actual recovery," he said.

Meanwhile, Cheney said county department heads should be prioritizing spending so that capital improvements don't have to bear the brunt of the county's financial missteps.

"There are definite needs that need to be recognized, and there are capital projects that still need funding," she said. "Are there other places to trim to make room for those capital improvements?"

Cheney said the county should make decisions about funding capital projects through federal stimulus programs, but she doesn't want to create debt that the county can't pay off. The current budget calls for the county to spend almost $9 million this year on capital projects using a federal "Recovery Zone" program that offers debt assistance to taxing bodies. That program expires at the end of this year.

Paul Fichtner, chairman of the county board's finance committee, said the candidates should be concerned. He also has reservations about the current budget because of the increased reliance on a major sales tax revenue recovery and the impact that plays on borrowing for capital projects.

"The whole linchpin in this is the (borrowing) program," he said. "We're already not making budget on sales tax receipts, so anytime we're not on budget for revenues that almost paralyzes plans for expenditures."

Fichtner said April and May sales tax figures will play important roles in determining how much spending will take place this year, because those months performed so miserably last year.

"We're definitely going to be waiting until we see what happens with those two months that were tough months last year," he said.

Neither Cronin nor Cheney will have much of a say in the preparation of next year's budget as the election takes place just days before the fiscal year ends. Whoever wins the Nov. 2 election will replace outgoing Chairman Bob Schillerstrom, who has held the post for the past 12 years.