FY2018 Year in Review

A mid-year projection of year-end revenues and expenses for Fiscal Year 2018 is available here. The year-end projections describe budgetary shortfalls and surpluses associated with the FY2018 budget approved by the Cook County Board of Commissioners in November.

Projected 2018 Year-End Revenues and Expenditures

Cook County’s General Fund is projected to end FY2018 with a $2.9 million surplus, while the Health Fund is projecting a $2.3 million shortfall, for a combined surplus of $.6 million in the County’s major operating funds. 

2018 Year-End Revenue Projection

General Fund and Health Enterprise Fund revenues support the County’s general operating funds and finance the Corporate, Public Safety and Health Enterprise funds and activities.  The total projected combined revenue for FY2018 year-end is $4,360 million, which represents a 13 percent, or $517 million increase from budgeted revenues. The vast majority of this increased revenue is specific to the Health Enterprise Fund.
General Fund
The total budgeted revenue for FY2018 is $1,800 million for the General Fund.  The projected year-end revenues of $1,809 million are higher than budgeted revenues by $9 million, or less than half a percent.  This projected increase in revenues is attributed to higher than anticipated revenues in the County Sales Tax due to a non-recurring accelerated payment from the State of Illinois to compensate for increased receipts in comparison to the prior year.  Also, effective with the State’s FY2019 budget, the 2 percent service fee imposed by the State on municipalities for the collection and remittance of sales tax revenue has been reduced to 1.5 percent, further attributing to the favorable revenue projection. 

Health Enterprise Fund
The total budgeted revenue for FY2018 is $2,043 million for the Health Enterprise Fund.  The projected year-end revenues of $2,551 million are higher than budgeted revenues by $508 million, or 25 percent.  The projected increase in revenue is attributed to the increase in enrollment in the Managed Care Medicaid expansion program, commonly referred to as CountyCare, which is allocated and collects reimbursements on a per member per month basis. 
The County’s General Fund revenue is comprised of Property Tax, Non-Property Taxes, Fees, Intergovernmental Revenues, Investment Income, Indirect Costs and Miscellaneous Revenues. The Health Enterprise Fund revenue is comprised of Patient Fees, Managed Care and Other revenue.
Property Tax
The projected year-end Property Tax Levy and Tax Increment Financing Surplus collections to the General and Health Enterprise Funds for FY2018 remains estimated at the budgeted amount of $274.8 million. 
Non-Property Taxes
Several of the Non-Property Taxes are on track to meet or exceed the FY2018 budgeted amounts.  The projected year-end revenues of $1,324 million in the General Fund are higher than budgeted revenues by $36.2 million, or 3 percent.  The aforementioned projected year-end revenue in the County Sales Tax for FY2018 is $38.9 million higher than budget, representing a 5 percent favorable variance.  Due to the robust economy, the State Income Tax which is collected by the State and remitted to the County is projecting year-end revenues of $12.3 million, that is $1.8 million higher than budget, or 17 percent. 
General Fund Fees
The County imposes various General Fund fees for certain services it performs. The fees charged by various County departments include fees for vital records, real estate transactions, court case filings, and delinquent taxes. General Fund fees are anticipated to be $197.6 million for year-end FY2018, which is a negative variance of $21.9 million, or 10 percent.  The primary driver of the negative variance relates to fees generated by the County Treasurer’s office.  The fees consist of penalties on delinquent taxes.  Due to the positive state of the economy and enhanced communications to inform impacted residents, there are fewer delinquent taxes.       
Intergovernmental Revenues
The projected year-end Intergovernmental Revenues for FY2018 is $46.3 million, this represents a $3 million, or 7 percent increase from the budgeted amount.  Intergovernmental Revenues include reimbursements from the State of Illinois and Forest Preserve District for select services under the administration of Cook County.  The favorable year-end revenue projection is attributable to higher than anticipated subsidies from the Administrative Office of the Illinois Courts (AOIC). 
Investment Income, Indirect Costs, and Miscellaneous Revenues
The County is projecting to receive Investment Income of $1.8 million, at the budgeted amount.  Investment Income is the interest garnered on County fund cash balances. 
Indirect Costs are charged to Grants and Special Purpose Funds to reimburse the General Fund for pension and administrative resources.  The projected year-end Indirect Costs revenues for FY2018 are $11.6 million, on par with budget. 
Miscellaneous Revenues are projected to generate $25.8 million in FY2018; this is below budgeted expectations by $8.3 million due to delays in anticipated one-time legal settlements.
Cook County Health and Hospitals System Fees
The Health Enterprise Fund receives revenue from patient fees and supplemental payments for care provided at County Hospitals.  In addition, the Cook County Health and Hospitals System (CCHHS) operates a Managed Care Community Network (MCCN) known as CountyCare.  CountyCare receives a fixed per member per month reimbursement for each of its roughly 332,000 members.  CCHHS projects that it will end FY2018 with fees totaling $2,479 million, a 26 percent, or $508 million increase to the FY2018 budget.  The increased FY2018 revenues projected by CCHHS are attributed to increased enrollment in the Managed Care Community Network.  CCHHS experienced CountyCare membership growth from 140,000 members per month to an estimated 332,000; outpacing the projected 225,000 members per month budgeted in the FY2018 budget.

2018 Year-End Expenditure Estimate

Year-end expenditures in the General Fund are projected to have a $6.0 million negative variance.  The overage is primarily attributable to higher than anticipated salary and wages ($5.8M) and reserve for claims ($4.5M).  These increases are partially offset by lower than anticipated overtime spending ($8.4M).
The Health Fund year-end expenditures are projected to be above the FY2018 appropriation by about $510 million due to higher than budgeted member enrollment in CountyCare, causing a large increase in managed care claims. Projected overtime costs are expected to exceed the budgeted amount by $4.4 million while regular employee salaries will be under budget due to employee turnover and position vacancy rates. Additionally, maintenance of facilities budgets is projected to be over budget by $5.2 million to continue to meet Joint Commission accreditation. 

FY2018 Year-End Revenue Projection

FY2018 Year-End Expense Projection