CHICAGO - Cook County, Ill., Board President Todd H. Stroger named his chief of staff, Joseph Fratto, to serve as interim chief financial officer after the surprise resignation of Donna Dunnings from the post Friday over her ties to a fired county employee.
Stroger announced Dunnings' resignation in an early Friday morning news release. He requested it after "Dunnings disclosure of issues related to a personal matter that could conflict with her ability to fulfill her responsibilities as chief financial officer."
In a radio interview later, he said he asked Dunnings, who is his cousin, to resign after learning of "explosive" allegations made by the fired employee Tony Cole. Stroger said Dunnings has denied the allegations, but agreed that they would make it difficult for her to continue in her post given the attention they will draw from the media and Stroger's board critics.
"I asked her for her resignation and she agreed that this would not be good for the county for a figure of her position to have a public fight of this nature," Stroger said in an interview on WLS-AM radio.
Stroger did not provide additional details of the allegations. In an interview with the Chicago Tribune, Stroger said Dunnings bailed Cole out of jail several times.
Cole was charged with attempted rape in 2002 and thrown off the University of Georgia basketball team. The charge was later dropped. Cole also drew national attention when he disclosed that his coach, Jim Harrick, had violated NCAA rules by influencing grades and handing out financial gifts to players. In 2003, Cole was convicted of writing bad checks.
The county knew of the 2002 rape charge when Cole was hired last year upon the recommendation of Louisiana University basketball coach Dale Brown, according to published reports, but he did not disclose the felony conviction for writing bad checks.
When county officials learned of that conviction they fired him last week from his $61,000-a-year human resources position. Stroger said he believed Dunnings was trying to help Cole because he was smart and deserved a chance.
In early 2007, Stroger pushed then-CFO Thomas Glaser out of the position and named Dunnings to the post. The move raised some eyebrows because she was his cousin and lacked much professional financial experience outside of the county. Dunnings had served as budget director since 2004 under Stroger's predecessor and father John Stroger, who left office after suffering a stroke.
At the helm of the county's finances, Dunnings has had to defend the move last year to boost the local sales tax to the highest in the nation. She also has faced a tough road winning approval for a new borrowing.
Stroger and Dunnings had originally sought approval from the Cook County board for $740 million of bonding but critics questioned why pieces earmarked for one-time pension-related and self insurance claim payments were needed in light of the sales tax increase. The borrowing was cut down to $250 million. Stroger's move to raise Dunnings salary 12% to $160,000 last year after raising the sales tax drew widespread media attention and criticism.
Fratto previously served as the county's comptroller and before joining the county in 2007 served in various financial roles with the Chicago Park District. His brother, Anthony Fratto, is a veteran Chicago-based public finance banker and former city comptroller who works at George K. Baum & Co. The county will conduct a search for a permanent replacement for Dunnings.
Cook County carries mid-double-A ratings on about $3 billion of outstanding general obligation debt.
