Lake County approves ‘challenging’ budget due to rising insurance costs

The Lake County Board approved a “challenging” budget during Tuesday’s meeting, as the county faces financial headwinds from insurance cost increases.

However, the $732 million budget moves forward with no major cuts and no one-time funding bandages, the county administrator said.

For a $350,000 home — the median value used during county presentations — the increase in the county’s portion of the tax bill will be about $15 from last year, County Administrator Patrice Sutton said.

The 2027 budget, including all funds, is $732.2 million, an 8.21% increase from last year, according to a county presentation on the budget. The property tax operating funds — which pay for most government services — are $409.3 million, a nearly 5% increase from 2026.

Paul Frank, chair of the Financial and Administrative Committee, called it a “challenging budget,” with the county “prioritizing the workforce, our people, as well as the infrastructure needs.”

County leaders attributed the issue to health insurance increases, which are “significantly higher” according to the budget presentation. It’s part of a broader national trend that is seeing health plans “approach 15-year highs.”

For Lake County, renewal premiums are about 20% higher, the presentation said. According to Sutton, that was a roughly $7 million operating expense the county had to absorb. But the budget has “no reliance on reserves for ongoing expenses,” with ongoing expenses funded by ongoing revenues, according to the presentation.

While they’ve avoided any major reductions, “the tightness in the budget” is impacting “the ability to make any new investments in additional headcount,” Frank said. That could be seen during the Finance Committee process, when requests for new positions in the Sheriff’s Office and Public Defender’s Office saw some back and forth.

Ultimately, the county gave the Public Defender’s Office partial funding for two principal attorneys, one assistant attorney and a senior investigator — with the understanding that the lengthy timeline for recruitment means those positions won’t require a full year of funding. The Sheriff’s Office request for four administrative clerks was also approved.

And two notable programs launched with COVID-era dollars — the Gun Violence Prevention Initiative and the Digital Growth Initiative — will be continuing forward into 2027 after facing questions about their longevity as federal money runs dry.

The GVPI, which includes on-the-ground community violence interrupters who collaborate with the county to reduce violent crime rates, will be moving ahead with grant funding, clearing it for 2027.

The digital equity push, meanwhile, has been downsized as it’s switched to county funding. Approximately $230,000 will cover two positions — a digital navigator supervisor and digital navigator — and it will be absorbed into the Lake County Workforce Development Group, Sutton said.

According to county leadership, the Health Department has also seen some changes. The department had closed its North Shore Health Center in Highland Park, and entered into a prenatal care partnership with Erie Family Health Center.

The last few years have seen federal funds repeatedly interrupted but ultimately delivered. To keep programs operating as normal during interruptions, the county had created a contingency fund, which will continue in 2027.

jstates@chicagotribune.com