Politics

Cook County Faces $550M Budget Shortfall in 2027 as Officials Prepare to Consider ‘Belt Tightening Measures’

Cook County is facing a projected $550.7 million budget shortfall in 2027, according to a mid-year forecast released Wednesday by Cook County Board President Toni Preckwinkle and the Cook County Bureau of Finance.

The projected budget gap, the largest in at least 16 years, comprises a $336 million shortfall in the county’s general budget and a $214.7 million shortfall in its health budget.

“We’re gonna look at a variety of belt tightening measures,” Preckwinkle told reporters during a Wednesday budget briefing. “We’re going to be looking at cost savings and efficiency before we consider any new taxes. Our goal is always to balance the budget without asking more from our taxpayers.”

Cook County’s general budget pays for areas such as public safety, property and taxation, economic development, and finance and administrative costs, according to annual budgets. The health budget covers the Cook County Health and Hospitals system.

The projected budget gap facing the county next year is fueled by the impact of litigation related to the Safe Roads Amendment, growing payroll and pension liabilities, increasing employee benefit costs and Medicaid enrollment declines due to federal policy changes, according to a budget forecast presentation. 

A judge ruled earlier this year that the county misspent $243 million in tax revenue that should have been used for transportation-related spending and instead was used to enforce road laws through various county offices, which was a violation of the Safe Roads Amendment of the Illinois Constitution. 

Preckwinkle recognized it would be a tough budget year, but said the county is coming from a position of strength, citing bond ratings improvements and progress in pension funding.

“Even strong internal fiscal management can’t shield us from external events: court decisions, federal policy changes, and rising costs across the economy,” Preckwinkle said. “But, we’re approaching these challenges the same way we always have — with transparency, discipline and a commitment to protecting vital services.”

This year, the county has an operating budget of $9.52 billion.

The general fund is expected to end this year with a $283 million surplus largely due to a one-time $115 million cigarette tax receipt from a tobacco tax settlement agreement and a stronger than anticipated sales tax revenue of $122.7 million, according to budget officials. The health fund is expected to end this year with a $42.8 million net loss driven largely by losses with the county’s largest Medicaid health plan CountyCare.

In March, Preckwinkle won the Democratic nomination for Cook County board president, positioning her for a fifth term in office. Preckwinkle has served in the role since 2010. Preckwinkle defeated Chicago Ald. Brendan Reilly in the primary and will face Libertarian Michael Murphy in the Nov. 3 general election. No Republicans sought the GOP nomination. 

A town hall to discuss the upcoming budget will take place July 9 at 5:30 p.m. in the County Board Room at 118 N. Clark, 5th Floor. The event will also be livestreamed. Starting Thursday, residents can visit the county’s website to view the preliminary budget forecast.

The budget will be released in October.

Heather Cherone and Blair Paddock contributed to this report.

Contact Eunice Alpasan: [email protected]