CHICAGO - The Cook County, Ill., Board of Commissioners is poised to vote tomorrow on a $2.9 billion 2009 budget that abandons much of board President Todd Stroger's $740 million borrowing plan and instead relies on spending cuts and anticipated federal stimulus money to help balance the budget.
The compromise plan comes after months of debate over Stroger's plan to borrow $740 million in new-money bonds to pay for pension payments, self-insurance claims, and a number of capital projects.
The borrowing was a key piece of Stroger's proposed budget introduced in late November, and immediately attracted criticism from commissioners who argued that the debt was unnecessary in light of a recent sales tax increase.
Last week the board's finance committee, which is made up of the full county board, signed off on a compromise spending plan that whittled down the borrowing to around $220 million for capital projects. The budget is further balanced through a series of spending cuts. Commissioners also included more positive revenue projections in the fiscal year.
It is unclear how the county would make its $109 million pension payment, though some commissioners suggested it could be paid off over a number of years. The self-insurance and workers' compensation claims would be paid in part with money saved from 4% budget cuts and $47 million in expected health care-related federal stimulus money.
"I expect that it's going to pass," said Commissioner Tony Peraica, who opposed the borrowing plans, with the exception of the piece that would support some of the capital projects. "But I don't have confidence in the numbers, and I think it was put together with Band-Aids and bubble gum. The revenue expectations in particular are unrealistic."
Peraica noted that the county brought in $127 million less in revenue than expected in fiscal 2008, which ended Nov. 30.
"How can you project for more revenues coming in fiscal 2009 than we received in 2008 when the 2009 economic environment, by all indications, is going to be more challenging?" he asked.
Though the board approved the bond issues in September - as well as an authorization that would allow the county to refund roughly $3 billion in debt - it recently has blocked the administration from going to market by refusing to sign off on the finance teams put together for the transaction.
While the pension bond and self-insurance bond issues are likely dead, the board is likely to approve some capital project bond financing, and Peraica said he would continue to vote against any of the proposed finance teams because of what he said are conflicts of interest with Stroger and finance chairman John Daley.
The board has until Feb. 28 to approve a final budget.
