Big Budget Problem for Cook County in 2025

Cook County has a big problem on its hands. The county is looking at a $218 million budget gap next year. Why such a huge gap? Well, it's mainly because of the raises given to county employees and the increasing pension payments that come with those raises. But here's an interesting twist – this year, the county might end up with a surplus of $367 million. Isn't that strange? County leaders have a rule: don't use one-time money for ongoing costs. They prefer to save it for future surprises or long-term debts. So, what are they planning to do about this budget gap? President Toni Preckwinkle says there won't be layoffs, program cuts, or tax hikes. She seems pretty relaxed about it, saying, "We’ve seen worse. " The surplus at the end of this year is partly due to inflation. Higher sales taxes and better investment incomes are helping. CountyCare, a county-run Medicaid health plan, is also contributing. But employee raises – around 5% for both union and non-union workers – are pushing up expenses. These raises alone will cost $94 million, with an extra $10 million for health benefits and $36 million more for pension payments. Even with these raises and bonuses, the county is still struggling to fill about 4,000 job vacancies. Most of these empty spots are in Cook County Health, which runs several hospitals and clinics. Despite this hiring challenge, the health department is a bright spot – it’s not expecting any revenue issues or cost overruns next year. Remember that $1 billion the county got from the American Rescue Plan Act? Most of it went to 73 community programs like guaranteed income and violence reduction. Only $275 million has been spent so far, with $319 million committed but not yet used. All this money must be spent or obligated by the end of 2026, or the feds might take it back. Preckwinkle knows about this "fiscal cliff" and is planning for it. The county has a reserve fund to keep some programs running after 2026. They are also looking for other ways to support these initiatives. A public hearing on the budget forecast will happen on July 17 at 6 p. m.