Cook County projects $550 million budget deficit for 2027

Cook County faces a $550 million budget shortfall next year that will require “careful planning and difficult decisions,” county officials said this week in a preliminary budget forecast.

Officials blamed a chunk of the projected deficit on an expected $138 million loss in federal funding, including from Medicare cuts.

There’s also a $258 million deficit created as a result of a January court decision that the county violated the state’s Safe Roads Amendment by spending $243 million in transportation tax money on other uses, such as law enforcement.

The amendment requires local governments to spend transportation revenues — such as from gas taxes — only on transportation-related expenses.

“We have done things the right way when it comes to budgeting: we use best practices, we spend (responsibly), we pay down legacy obligations, we plan ahead and set aside money for emergencies, but the County is not immune to extraordinary outside factors like federal action or court rulings,” county board President Toni Preckwinkle said in a written statement Wednesday.

The budget is split into two primary areas. The general fund covers most elements of county government, including roads and transportation, the criminal justice system and administration. The health fund covers the Cook County Health system and related services.

According to the preliminary forecast, the county is projecting a $283 million in the general fund at the end of the current budget year Nov. 30. And while general fund revenues are expected to grow for the 2027 budget that begins Dec. 1, the fund is projected to face a $336 million budget gap due to the court ruling, as well as rising employee salaries and health insurance costs.

The health fund has a projected $214.7 million deficit for 2027, largely due to federal assistance cuts and Medicare eligibility restrictions, officials said.

A public hearing on the preliminary forecast will take place at 5:30 p.m. July 9, in the county board room at 118 N. Clark, 5th Floor, Chicago. It will also be livestreamed. Residents can visit the county’s website at cookcountyil.gov/Budget to view the preliminary forecast.