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Download This Report FOR IMMEDIATE RELEASE For more information, contact Laurence Msall at 312-201-9044 CIVIC FEDERATION OPPOSES COOK COUNTY’S MASSIVE, UNJUSTIFIED Officers TAX HIKES, PERSONNEL INCREASES Barbara Stewart, Chairman Sarah Garvey, Vice Chairman George Lofton, Vice Chairman In a blistering report to be released to the public today, the Civic Federation announced its Thomas McNulty, Vice Chairman Joseph B. Starshak, Treasurer opposition to Cook County President Todd Stroger’s proposed $3.2 billion FY2008 budget. Laurence J. Msall, President The full study, including comprehensive analysis and recommendations, is available on our Board of Directors Catherine M. Adduci* website, www.civicfed.org. Bridget M. Anderson* A.G. Anglum* Adrienne Archia* The Civic Federation found that the county’s FY2008 budget represents a stunning reversal Murray E. Ascher* Alicia Berg from last year’s painful but necessary across-the-board cuts to the county’s spending and Abel E. Berland ☼ personnel. It is predicated on the addition of 1,130 new positions, a 267% increase in the Roger Bickel Aileen Blake* county’s sales tax, and other tax hikes that could generate as much as $979.8 million in Douglas H. Cameron Richard A. Ciccarone * FY2009. Even more astonishing is the lack of justification for either the tax or personnel Jerry Cizek ☼ Elizabeth Gallagher Coolidge increases. “It is inexcusable and irresponsible for a government that has a history of Mark Davis* inefficiency, cost overruns, and eye-popping mismanagement to demand millions of additional Amy Anderson Day Kevork Derderian ☼ dollars from taxpayers when it has failed to implement rudimentary efficiencies and cost- Julian C. D’Esposito Martin L. Eisenberg* saving measures,” said Laurence Msall, president of the Civic Federation. Brian D. Fabes Timothy J. Faerber Timothy Fair Instead of focusing on new and creative ways to increase taxes, Cook County should redirect Theresa M. Fredrick Stephen Friedman those energies to containing spending. Until the Cook County government can demonstrate to Charles R. Gardner * Carol W. Garnant ☼ taxpayers that it has taken the necessary steps to operate with efficiency and transparency, Anthony Gedeller taxpayers will not have confidence that their dollars are being levied and spent wisely and will Judith A. Gold* Steven Gouletas certainly not support any new tax increases. The Federation’s analysis includes Patrick Hagan Philip Hale recommendations that would both contain costs and provide much-needed improvements to Albert C. Hanna the county’s management of tax dollars. Bruce T. Hopple Margaret A. Houlihan Lorna Brett Howard Thomas J. Klutznick Approximately 62% of the county’s proposed FY2008 spending is earmarked for personnel James Kranjc* Thomas E. Livingston expenses, which should make curbing employee cost growth a top priority. Instead of Michael A. Lovett increasing next year’s payroll by 4.8%, the Civic Federation calls on county management to William Mack Thomas McCracken reassign existing staff to meet court-mandated staffing and critical health fund needs. Cook Susan McKeever Eileen Mitchell* County should end the practice of giving employees both annual step and cost-of-living Fred H. Montgomery* increases and limit total annual increases to the lesser of 3% or inflation. The Federation also Timothy E. Moran Monica M. Mueller recommends that the county pursue alternative service delivery and outsourcing as ways to Michael E. Murphy ☼ Bert Nuehring* reduce the cost of its operations. Michael E. O’Brien Holly O'Connor William Paparella The Civic Federation’s recommended management reforms would enable the county to Robert Pasin Kathleen Pasulka-Brown improve the efficiency of its delivery of services. Such reforms include taking immediate steps Dorice Pepin Donovan Pepper to transfer the management of the Cook County Health Bureau to health care professionals, as John H. Peterson was recommended by a recent blue-ribbon panel study, and implementing an effective Erika Poethig Alexander I. Rorke performance management system. Cook County must aggressively prioritize the $3.0 billion it Scott Saef ☼ James E. Spiotto* currently spends and it cannot do so without knowing how efficiently (or inefficiently) the Caryn Stancik Theodore M. Swain* different parts of its organization operate. “The county must come to the realization that the Kent A. Swanson resources the taxpayers will provide for its services are finite,” Msall added, “and implement Thomas C. Vanden Berk Robert Vihon* strategic planning in order to give citizens more bang for their tax buck.” John F. Ward, Jr.☼ Greg Wass Jerrold Wolf The Civic Federation is an independent, non-partisan government research organization founded in 1894. The Federation's Charles J. Wooding membership includes business and professional leaders from a wide range of Chicago area corporations, professional service firms and Philip Zinn* institutions. * Executive Committee ☼ Past Chairmen’s Council 177 N. State Street, Suite 400 Chicago, Illinois 60601 z Telephone (312) 201-9066 Fax (312) 201-9041 z E-mail [email protected] COOK COUNTY FY2008 PROPOSED BUDGET Analysis and Recommendations Prepared By The Civic Federation October 26, 2007 TABLE OF CONTENTS EXECUTIVE SUMMARY .........................................................................................................................................3 CIVIC FEDERATION POSITION ON FY2008 BUDGET ....................................................................................4 ISSUE THE CIVIC FEDERATION SUPPORTS ..................................................................................................................5 Introducing an Executive Budget Before the Beginning of the Fiscal Year .........................................................5 Employee Health Care Changes ..........................................................................................................................5 Moving Toward Performance Measurement........................................................................................................6 ISSUES OF CONCERN ..................................................................................................................................................7 Massive, Unjustified Tax Increases......................................................................................................................7 Large Personnel Increases...................................................................................................................................8 The Failed Management of the Cook County Health System...............................................................................8 No General Fund Balance .................................................................................................................................10 ACKNOWLEDGMENTS.........................................................................................................................................10 FY2008 BUDGET DEFICIT AND GAP-CLOSING MEASURES.......................................................................10 APPROPRIATIONS .................................................................................................................................................12 ALL FUNDS APPROPRIATIONS BY CONTROL OFFICER..............................................................................................12 ALL FUNDS APPROPRIATIONS BY FUND...................................................................................................................13 RESOURCES.............................................................................................................................................................15 REVENUES IN FY2008 .............................................................................................................................................16 FIVE-YEAR REVENUE TRENDS ................................................................................................................................18 PROPERTY TAX LEVY ..............................................................................................................................................18 FUND BALANCE.......................................................................................................................................................19 PERSONNEL TRENDS............................................................................................................................................20 PENSION FUND TRENDS ......................................................................................................................................23 FUNDED RATIOS – ACTUARIAL VALUE OF ASSETS..................................................................................................24 UNFUNDED PENSION LIABILITIES ............................................................................................................................25 INVESTMENT RATES OF RETURN .............................................................................................................................25 CIVIC FEDERATION RECOMMENDATIONS ..................................................................................................26 COST REDUCTIONS ..................................................................................................................................................26 Limit Total Annual Personnel Compensation Increases to 3% Per Year or CPI...............................................26
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