Chicago Area Local News

CHICAGO (CBS) ― Nine months after he pushed through a controversial sales tax hike, Cook County Board President Todd Stroger says he needs even more revenue to avoid massive layoffs of county employees.

To that end, Stroger wants to borrow hundreds of millions of dollars to pay for bills and pensions.

As CBS 2's Joanie Lum reports, the 2008 budget battle dragged on for months last year and earlier this year. As midnight approached on the night of Feb. 28, the county commissioners had to stop the clock in the boardroom for 15 minutes so they could make the legal deadline for passing a balanced budget.

The board begrudgingly approved a 1 percent increase in the county sales tax, which raised the sales tax in Chicago to the highest level of any major U.S. city, at 10.25 percent. Under the deal, the county portion of the sales tax increased from 0.75 percent to 1.75 percent.

Back then, county officials said the tax hike was a rare move to keep county government running. They said without the tax hike, health and safety services provided by the county might be in jeopardy.

Stroger defended the tax hike against those who said it was excessive.

"Until this place falls apart, then I'll jump and say, 'You know what? I screwed that up,'" Stroger said. "But until then, I'm going to say I'm doing a damn good job."

County officials said the tax hike was supposed to generate $400 million, but apparently it is not generating enough money.

Stroger insists the county has to borrow the money to pay off debt from last year and because, in this bad economy, he says, the county is not taking in as much revenue as he expected. Stroger now says thousands of workers could be laid off if more revenue is not approved for the 2009 budget.

He argued his critics on the county board should understand that.

"They must not be doing their jobs. Maybe they ought to come to some meetings; maybe they ought to listen when their colleagues are talking," Stroger said.

To account for the shortfall, wants the board to approve a $740 million loan to bail out the budget. He says pensions and jobs are in jeopardy. Among the options being laid out on Tuesday is a cut of 1,500 jobs at the county Sheriff's Office alone.

Some county commissioners say for a borrowing plan, the timing is terrible.

"No one else in the world is borrowing money in this economy," said Commissioner Mike Quigley (D-10th). "I think Cook County government thinks it's outside of the world of economic reality, and unfortunately if they do, taxpayers will suffer."

"I think that what we need to do instead is to take a look at this budget, look at changes, better ways to manage taxpayers' money; reduce the payroll, reduce the benefits, or make employees pay additional contributions for health care and other benefits," added Commissioner Tony Peraica (R-16th).

Quigley said Stroger's budget is like the movie "Groundhog Day."

"It reminds the public in Cook County that nothing every really changes in Cook County," Quigley said.

Another is not buying the claim the county may have to liquidate assets in the pension fund.

"It's all part of the scare tactic to convince the board to borrow hundreds of millions of dollars for him to use as 'funny money' in his re-election campaign," Commissioner Forrest Claypool (D-12) said.

There was another testy moment when Peraica attempted to talk to reporters and was interrupted by sometime Stroger ally Earlean Collins.

There will be more of that sparring when the county's finance committee debates the merits of Stroger's budget.

Stroger critics Quigley and Claypool will likely come up with a budget of their own. As for the heat Stroger takes in the media, the county board president said he feels good about himself.

CBS 2's Joanie Lum and Jim Williams contributed to this report.

(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)

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