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Chairman Dan Cronin
September 13, 2011
Introduction
- Today I submit to you my proposed budget for the fiscal year 2012, which begins December 1st.
- Let me acknowledge the hard work of top staff…including Paul Fichtner…Tom Cuculich, Fred Backfield…the finance staff and department heads for their participation in this process.
- I’d also like to thank this board and the countywide elected officials for their input and ideas over the last several weeks. I look forward to continuing our work together as we finalize a budget plan that is responsible…frugal…and pragmatic.
General Opening
- All of us in public service continue to navigate unchartered territory. Few times in history has our country…our state…and our communities…confronted the enormous challenges we must face in this economic and political climate.
- The economy continues to struggle and there are few signs of encouragement for a turn-around. Unemployment…particularly in Illinois…remains stubbornly high. Home foreclosures continue to be a problem.
- Families are finding it more difficult to make ends meet…as they try to manage higher day-to-day costs such as gas and groceries. And every time they turn around…it seems like there is a new tax…a higher fee…a greater burden on their family.
- People have lost faith in government to do the right thing on their behalf. Three in four Americans now believe our country is on the wrong track. And for the first time…the government ranks dead last in a list of major institutions whom Americans trust to do the right thing. The government actually ranks behind oil corporations in this survey.
- I know this is a grim picture…but it is the reality in which we must operate. It also represents an opportunity to demonstrate to the people we serve here in DuPage that we can do things differently.
- Over the last several months…we have taken on some tough fiscal issues. We’ve addressed a few crises that came our way. We’ve remained mindful of not just our duty to provide needed services…but our obligation to make sure the tax dollars we spend are spent wisely…with purpose…and with a large measure of respect to our taxpayers.
- For the most part…this has been done in a collaborative manner without a lot of the rancor we see in Washington or Springfield.
- And if we continue to address the issues that taxpayers are most concerned about…and continue to do so in a way that is respectful to each other…perhaps we can take a small step in restoring people’s faith in public service here at the local level.
Budget Overview
- The 2012 budget is a result of our work together…and offers an opportunity to build on the success we’ve achieved this year.
- Next year’s budget is $434.7 million…which is about $10 million less than the 2011 budget. Most importantly…this budget is once again achieved without asking for more from our residents. There is no increase in the property tax levy.
- Revenue estimates are conservative and reflect the realities of a foundering economy and the state’s troubling fiscal condition.
- The budget also prevents the need for lay-offs or furlough days. Headcount is reduced by 12 full-time positions for a total of 58 fewer positions over the last two years.
- At the same time…the essential services of county government are properly funded. Public safety, infrastructure and human services are our top priorities and this budget demonstrates our commitment to those obligations.
- Highway improvements….drainage projects and stormwater needs will proceed next year as we take advantage of lower borrowing costs.
- Moving forward…this budget also outlines the challenges that lie ahead and what opportunities we can pursue to make DuPage County a more dynamic and more productive body of local government.
- I believe there are three key ways to achieve this goal: Number one: Reducing employment costs. Number two: Seeking consolidation and partnerships….and number three: pursuing reform and transparency.
Reducing employment costs
- •Our chief concern is overhead expenses. Employee costs continue to rise faster than revenue growth. An assessment earlier this year indicated that overhead costs would grow at a rate of 133% of estimated revenue over a five year period.
- IMRF and health insurance costs were anticipated to increase 50% by 2016.
- I appreciate the work of Jeff Redick’s Ad Hoc Committee on Human Resources and John Zediker’s Sub-Committee on Health Insurance. The work of these committees is vital as we continue to reduce these costs.
- One key policy change has been in the area of compensation for county employees. Cuts have been made in the accrual of sick time and vacation days that should save the County nearly $20 million over the next 20 years.
- The Health Insurance committee continues to pursue cost-savings measures. Employees will pay more into their health care benefits again next year as we attempt to provide adequate coverage to our employees and their families.
- We also imposed restrictions on travel by county employees. Costly trips to gain information that can just as well be accessed online are just not necessary in this day and age.
- We also will see a cost savings from the 104 employees who retired this year. Rather than immediately filling the vacant positions…we went through a careful and deliberative review to decide whether the position is necessary or if we can absorb those duties with current staff.
Seeking consolidation-partnerships
- All of us regularly hear the frustration from our constituents about the size…scope…and cost of government. I again feel confident that we can show how measures like consolidation and local partnerships are needed in order to save tax dollars and operate more efficiently.
- Last spring…Brien Sheahan initiated a Shared Services summit that gathered elected officials and administrators to discuss way to collaborate on basic operations.
- We continue to implement the ERP system that will enable us to gain efficiencies in daily functions such as payroll…finance…and human resources.
- I am also committed to the innovative partnership with Kane County to utilize their Juvenile Detention Facility.
- In response to the discussion that the County Board had two weeks ago, I have accounted for the $400,000 in funding for the Juvenile Detention Facility. But I am hopeful that we will be able to reach a final agreement with Kane County and eliminate this expense.
- The $400,000…however…only funds a very minimal service level. Preserving the status quo is not just a bad deal for taxpayers…it costs about 3 ½ times as much to house a juvenile in our facility each day as it does to pay the daily tuition at the University of Illinois.
- But Kane County is able to offer enhanced programming for these juveniles. I will continue to work with all of you to finalize this partnership and save hundreds of thousands of tax dollars in the process.
- I strongly believe that one of our greatest accomplishments this year is getting a handle on the dozens of independent taxing districts in DuPage County. The legislature passed…and the governor signed…Senate Bill 541 that gives us the authority to gain much-needed oversight on these agencies and commissions.
- The ordinance approved by this board last month provides us with the tools necessary to access budget and operational information for the first time.
- Once we have collected all the information by the end of this month…we can determine areas that are ripe for consolidating…streamlining…or perhaps even downsizing.
- This task offers an opportunity to show DuPage taxpayers that we can take steps to reduce the burden of government…and assemble a structure of local government that is both responsive and responsible.
Pursuing reform and transparency
- At the same time…we are shining a light on these agencies in the name of good government and transparency.
- We’ve learned some lessons from the crises at the Water Commission and the Housing Authority. Our own Jim Zay is to be applauded for proving that a new direction can be applied to an old agency. And I appreciate this board’s support to overhaul those agencies…appoint a new board of directors…and hire new administrators.
- We need to prevent the mistakes of the past…to the extent we can. Taxpayers are entitled to easily-accessible information on every unit of government they support.
- The County has made great strides over the last few years…and has been recognized nationally for our attempts to increase transparency on behalf of our residents. Now our mission is to seek the same level of openness for all DuPage agencies.
Building on Success
- So I thank you for your consideration of this budget recommendation.
- Over the next few weeks…we will have a chance to discuss the proposal more in-depth… as well as seek input from our residents during the public hearings.
- I truly believe the 2012 budget will allow us to build on the successes of this past year… and represent the best interests of the taxpayers we in DuPage County are committed to serving.
- Thank you.
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