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September 26, 2007
FOR IMMEDIATE RELEASE
For
more information, contact Ibis Antongiorgi, Press Secretary to Cook
County Board President Todd H. Stroger, at 312-603-0396 or by email at
iantongiorgi@cookcountygov.com.
Cook County Faces $307 Million Budget Deficit for FY 2008
County
officials say deficit would have been even higher without expansion of
performance-based budgeting, deep cuts in some expenditures.
September 26, 2007 – Cook
County Board President Todd H. Stroger’s office released numbers
for Cook County’s proposed 2008 deficit today, which is projected
to be $307 million.
“Between our structural deficit and additional financial
obligations for FY 2008, it becomes clear that there is a dire need for
new revenue to address our financial obligations,” said County
Board President Todd H. Stroger.
“This budget deficit includes a $157 million increase in
expenditures and a $150 million reduction in revenue,” says Cook
County Chief Financial Officer Donna Dunnings. “48% is generated
by employee-related costs that have been approved by the County
Board.”
County officials assert that if it weren’t for improvements in
areas like the Bureau of Health Services’ billing system and
prescription drug co-pays, the deficit would have been larger.
Earlier this week, the Center for Tax and Budget Accountability
released a report which estimated that Cook County’s structural
deficit for 2008 – not including COLA’s and other
contractual obligations – was expected to top $288 million.
The County asked the CTBA to analyze the level of County expenses for
core services compared to the level of revenue the County can collect
to pay for those core services.
The report's principal finding is that the County's annual revenue
growth falls far short of annual expenditure growth, taking into
account only inflation and holding public services at 2007 levels into
the future.
For this year’s budget cycle, performance-based budget standards
were fully implemented, according to the Cook County Department of
Budget and Management Services. The approach is designed to hold down
costs, create greater accountability and efficiency, and maximize the
services that each department and bureau provides for the dollars they
are allocated by using measurement tools that carefully compared costs
to outcomes and based 2008 budgets on those performance numbers.
“We’ve worked very hard to ease the financial impact of a
massive structural deficit – but without new revenue, we’ll
be forced to cut into core services, particularly further cuts of core
services in health care, and that is simply not an option we want to
consider,” said President Stroger. “I have every hope and
expectation that the County Board will identify new revenue to tackle
this deficit.”
Cook County is the 19th largest unit of government in the nation
representing more than five million residents in 128 municipalities and
30 townships.
For
more information, contact Ibis Antongiorgi, Press Secretary to Cook
County Board President Todd H. Stroger, at 312-603-0396 or
iantongiorgi@cookcountygov.com.
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