Kane County to use riverboat money to stave off health department layoffs

Kane County will use gambling money to at least temporarily avoid layoffs that would cripple the county health department.

County Board Chairman Karen McConnaughay suggested Wednesday using some of the county's riverboat gambling revenues to create a line of credit that would hold the department over for about six weeks.

The hope is that the move would allow the department to put off layoffs long enough for state lawmakers to create a budget that restores health department funding.

Health department officials warned weeks ago that layoffs were coming when it became clear state grants that comprise 43 percent of their budget would be reduced or eliminated, piling onto what is now $962,000 of state money already owed the department.

Health Department Executive Director Paul Kuehnert detailed the extent of possible layoffs Wednesday, saying the loss of state funds will trigger the layoff of 58 employees. That's by far the largest layoff in the history of the department.

Doing nothing would render the department unable to meet payroll as of September, burn through all the department's savings and leave a $200,000 deficit at the end of the year.

"I cannot recommend that we wait and see what happens with the state," Kuehnert said.

The county believes the state eventually will pay the $962,000 it owes the health department. Once that is in hand, the county can use that to repay the riverboat fund.

If the state budget is still an unknown by early August, or if the state lawmakers don't restore all the grant money the health department is set to lose, then the layoff of 58 people will be necessary at some point.

County board members showed Wednesday they are willing to create the line of credit for the health department.

However, they may duke it out over exactly how much credit should be available. McConnaughay pitched the idea of floating up to $1 million to the health department, a figure initially agreed upon by county board members.

But only minutes later, the county board's executive committee shrunk that amount to $500,000. The thinking behind the smaller amount is that the county board could always come back and vote on an additional $500,000 line of credit for the health department if need be. In the meantime, leaving as much money in the riverboat fund as possible keeps it available for other uses.

County Board Member Drew Frasz, of Elburn, summed up the sentiments of most board members about why the health department's needs trump others' right now.

"To be blunt, if this department's gutted, people could die," Frasz said.

Board Member Jim Mitchell was the lone voice of dissent. Mitchell said he couldn't vote to give more money to a department that has a lobbyist and pays for what he deems to be unwarranted travel expenses for the department's epidemiologist.

"Those are two things that don't seem to be needed to me," Mitchell said.