Cook County revenues down $67 million

Analysis of Cook County's finances after eight months shows revenues down by $67 million compared to budget expectations.

The dip is mainly due to patient fees going uncollected to the tune of $68.7 million at the county's hospital system, according to a report released by Cook County Board President Toni Preckwinkle's office. It's offset somewhat by $9 million surplus in fees collected in the county's “Disproportionate Share Hospital” fund, which is a federal program that pays hospitals to treat low-income patients.

The report blames management of the hospital system for failing to shore up Medicaid billing losses as well. A new director of the county's hospital system is set to take over in the coming weeks. However, the new director will have his work cut out for him as the board learned Wednesday that the hospital system's budget director recently resigned abruptly.

Additionally, fees from the court and court clerk are down a combined $10 million, along with a drop in anticipated fuel taxes of $4 million.

Revenues are coming in above budget at the treasurer's office, which is running at $4.7 million higher than expected. The county's use tax is also up by $2.3 million.

Sales tax revenues are also coming in slightly above budget, but still way down from last year because of the board's repeal of a quarter-cent sales tax. The county had budgeted $328 million through the first eight months, but actual sales tax receipts show revenues up $700,000 more than anticipated. The report indicates officials attribute the slight bump to consumers spending more after the quarter-cent sales tax repeal.

Meanwhile, the county still received $82.2 million less in sales tax revenue over the same time period as last year. Officials anticipate the repeal of the sales tax will cost the county $162 million this year.

Coupled with shortfalls in the hospital system, the county is facing a $315 million budget deficit in the next fiscal year that begins Dec. 1. Preckwinkle has hinted at layoffs to offset some of the shortfall, but has also been holding town hall meetings to gather ideas on where else the county can cut.