Despite ongoing tensions at the federal level causing widespread financial uncertainty, Cook County Board President Toni Preckwinkle presented a preliminary outlook for the County's Fiscal Year 2026, projecting a $211.4 million gap. However, President Preckwinkle was quick to point out that this is an improvement from last year’s $218.2 million shortfall, as reported by Cook County's news release. This figure also represents a significant decrease from the pandemic peak's $409.6 million gap.
"By making tough decisions, implementing budget best practices and spending taxpayer dollars responsibly, the County has created a strong fiscal foundation as it navigates the unpredictability and volatility being created at the federal level," Preckwinkle said. She emphasized the nearly 15 years of fiscal prudence that have put the County in a solid position to surely tackle potential future economic challenges. The forecast reflects careful management, which has resulted in three bond rating upgrades for the County, the closing of over $1 billion in preliminary gaps since the onset of the pandemic, an increase in reserves, and balanced budgets without raising taxes.
Continued strategic management has enabled Cook County to devise a plan for maintaining pandemic services once federal funds dry up. This is made possible due to an ARPA reserve supporting programs such as medical debt relief, guaranteed basic income, and violence prevention efforts. Cook County emphasizes the importance of such programs, given their origins and impact during the height of the COVID-19 pandemic, underscoring their continued relevance in the coming years.
Looking at the County's General and Health Funds, the General Fund is projected to end FY2025 with a positive net of $145.1 million, attributed to slower hiring leading to payroll savings and higher than expected Sales Tax Revenue. However, the FY2026 forecast anticipates a $102.6 million gap due to minimal revenue increases and significantly rising personnel costs, inflation, and healthcare. The Health Fund projects a negative net result for FY2025, largely from the end of Illinois' Health Benefits for Immigrant Adults program. FY2026 expects a $108.8 million gap, with challenges including reductions in patient service revenues and the impact of Medicaid redetermination.
Perhaps most concerningly, Preckwinkle highlighted potential federal cuts to healthcare, which could be deeply detrimental to Cook County's services. "Ever-shifting federal guidance, threats of drastic funding cuts, impulsive decision-making with vast economic implications and the general unpredictability of this new presidential administration is creating stress for state and local budgets across the country," she stressed. Despite this, the County remains steadfast in its mission to protect residents and provide necessary services.
To engage the community in these budgetary matters, a virtual public hearing will be held at 6 p.m. on July 16, enabling residents to discuss their priorities directly with the President's office. Information can be accessed, and questions can be submitted through Cook County's website leading up to the event. The County encourages residents to participate in the democratic process, ensuring their voices are heard as fiscal strategies are crafted and refined for the upcoming year.
