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Home >> 2008 Cook County Budget Proposal
    
Cook County Budget Update
After midnight on February 29, 2008 the Cook County Board approved a budget for 2008, three months into its fiscal year. When President Stroger offered his budget recommendations back in October 2007 the deficit was $239 million. During the nearly four month debate, this deficit grew to $283 million, as revenues related to the real estate market continued a sharp downturn and hospital billing collections lagged behind projections. At the outset, President Stroger had proposed a 266% increase in the sales tax rate from ¾% to 2 ¾%, a doubling of the parking tax and a doubling of the vehicle fuel tax. Combined these taxes were projected to generate just over $239 million.

Throughout the process, some Commissioners offered tax alternatives to those presented by the President. Commissioner Beavers proposed higher taxes on electricity, natural gas and telephones. Commissioner Maldonado offered proposals to impose a tax on jet fuel and raise the tax on large vehicles, on-premise liquor and hotel rooms. He also proposed increasing the use tax. Commissioner Moreno proposed a county-wide wheel tax that, if approved would have had many motorists throughout the County applying two vehicle stickers to their cars instead of one.

Here's a chart outlining the final action on each of these tax proposals.

On the expense side of the budget, President Stroger's initial recommendations included $68 million in expense reductions. This included the elimination of 735 positions for a savings of $44.3 million, $13.8 million in non-personnel savings, $5.2 million in reduced overtime expenses and $4.7 million is savings from a centralized hospital administrative services function. Through the amendment process, the County Board made further cuts. Although of the nearly 130 amendments offered, few proposed any meaningful reductions and even fewer received the nine votes necessary to actually pass the County Board. The Board did manage to reduce professional and management services at the Health Bureau by 10% for $1.1 million in savings. Another $12.1 million was saved by eliminating about 180 of the 1,100 new positions proposed in the 2008 budget. The final amendment on the expense side was a 4% across the board reduction for a savings of just over $23 million. This cut was not applied to those units of county government that are under a court order or decree such as the Cook County jail and the juvenile detention center.

1% Sales Tax Roll Call (Retailer’s Occupation and Service Occupation)

Yes (9) – Beavers, Butler, Collins, Moreno, Murphy, Sims, Steele, Suffredin, Daley
No (8) – Claypool, Gorman, Goslin, Maldonado, Peraica, Quigley, Schneider, Silvestri

Tax
Current Rate Proposed Rate Sponsor Final Action
Retailer's Occupation* 0.75 1.75 Commissioner Murphy Passed 9-8
Service Occupation* 0.75 1.75 Commissioner Murphy Passed 9-8
Aviation Vehicle Fuel 0.00 0.06 gallon Commissioner Maldonado Failed
Hotel 0.00 1% of gross rental charge Commissioner Maldonado Failed
Use 0.75 1.00 Commissioner Maldonado Failed
Alcoholic Beverage (on premise) None 1.5% of purchase price Commissioner Maldonado Failed
Motor Vehicle Weight   $100 per vehicle weighing 3,300 pounds or more Commissioner Maldonado Failed
Wheel Varies based on vehicle 140% - 366% increase on trucks and application county-wide Commissioner Moreno Failed
Natural Gas None 0.052 per therm Commissioner Beavers Failed
Electricity None Ranging from 0.61 per kwh on first 2,000 kwh to 0.30 per kwh over 20,000,000 kwh Commissioner Beavers Failed
Telecommunications None $4.00 per month Commissioner Beavers Pending in Committee
Tobacco None 0.10 per cigar 0.50 per ounce roll your own 0.25 per ounce smokeless Commissioner Beavers Pending in Committee
Parking** 0.05/daily to 20.00/monthly 1.00/daily to 40.00/monthly President Stroger Pending in Committee
Gasoline** 0.06 per gallon 0.12 per gallon President Stroger Pending in Committee


*The initial sales tax proposed by President Stroger was to increase the rate from ¾% to 2 ¾%. The final tax rate that was approved represents a 50% reduction in his request.

**These taxes were part of President Stroger's original budget recommendation but were never formalized into ordinance form and submitted to Committee, although staff maintains they are pending in Committee.