Preckwinkle's $8.75 billion budget comes with no tax, fee hikes
No tax or fee hikes are included in Cook County Board President Toni Preckwinkle's $8.75 billion budget recommendation, which is a 7.8% increase over the county's current spending plan.
"Cook County has encountered no shortage of challenges," Preckwinkle said in a news release ahead of Thursday's budget hearings. "Despite a pandemic, global economic turmoil and rising inflation, the fiscal condition of Cook County is strong. I am incredibly proud of what we have done to weather these storms, confront these obstacles, increase equity and turn adversity into opportunity."
Preckwinkle noted that for the seventh straight year, the county will not increase its property tax levy.
During a call with reporters Wednesday afternoon, she called her budget proposal "not just responsible, but transformative."
The budget includes a 1% increase in hiring, amounting to 264 new positions, mainly to cover workloads created by the implementation of the Pre-Trial Fairness Act, which eliminates cash bail beginning Jan. 1.
But officials noted the county has about 4,000 vacant positions currently among the more than 23,000 full-time posts.
Savings from those personnel openings likely will help the county close an $18.2 million budget shortfall expected in Preckwinkle's budget plan.
Preckwinkle's proposed fiscal year 2023 budget also relies on a 12.8% increase in sales tax revenue, something critics believe could be tough to reach as inflation grows. However, county budget officials believe receipts could exceed expectations, despite the looming threat of a recession.
"We are seeing about a 7% increase over our budget from the prior year, so we anticipate that growth will continue for FY22 already," said Dean Constantinou, deputy chief financial officer. "When we do our forecast we use a variety of different methods. From a statistical perspective, I would anticipate this number would actually maybe be a little conservative."
He noted inflationary price hikes on goods will drive a reciprocal increase in sales taxes and noted the county is receiving greater compliance with online sales tax revenue from retailers, which they anticipate will help the county reach its revenue targets.
Preckwinkle is seeking her fourth term in office, squaring off against Republican Bob Fioretti and Libertarian Thea Tsatsos in the Nov. 8 election.
Flush with about $1 billion in federal COVID-19 relief funds, the county also is implementing a guaranteed income program that will provide $500 monthly payments to 3,250 households for two years.
The county has committed to continuing the program, which distributes nearly $20 million a year, for another two years after the federal funding ends, Preckwinkle said.
"This is not a new idea in this country. Martin Luther King talked about it 55 years ago," Preckwinkle said. "Giving people money so they can support themselves and their families better, so we hope to see more financial stability, we'll see people investing in education for themselves and their children, see less food insecurities, those are the kinds of things seen elsewhere in pilot programs."
Registration for the guaranteed income program opened Thursday and remains open through Oct. 21. Participants have to meet household income eligibility requirements. Visit promisepilot.cookcountyil.gov for more information.
Because Chicago is doing something similar, Preckwinkle said she expects the county guaranteed income program to "skew suburban," though city residents are not being excluded.
The recipients will be determined via a lottery process, she said.
A number of other capital and social initiatives will benefit from the federal funds as well.
The county board will discuss Preckwinkle's proposal at a series of hearings over the next several weeks before a final vote is expected in November.