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Chairman changes budget plan to account for economy


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By Dan Petrella, dpetrella@mysuburbanlife.com
Suburban Life Publications

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DuPage County, IL -

Due to a “precipitous drop” in sales tax income and concerns expressed by several DuPage County Board members, Chairman Robert Schillerstrom made adjustments Monday to his 2009 spending plan.

Since Schillerstrom first proposed his $462.6 million budget in September, the national economy has been on roller-coaster ride. Economic uncertainty has tamped down consumer spending, leading to a decline in the county’s sales tax revenue over the past four months.

“Our situation has changed dramatically since I introduced my budget in September,” Schillerstrom said.

At a special County Board meeting, he proposed reducing the county’s expected sales tax revenue for 2009 by $5 million. Several board member have stated at recent meetings that the original revenue projections were overly optimistic.

To maintain a balanced budget, Schillerstrom suggested cutting in half the $12 million he had proposed setting aside for his DuPage 2013 plan.

DuPage 2013 is a $300 million plan that would use bonds to fund major road projects and improvements to county government complex in Wheaton.

The $12 million would cover the first year’s payment of the debt if the bonds were sold at the beginning of the year. But due to the weak economy, it will probably be several months before the county considers selling bonds, Schillerstrom said.

Setting aside $6 million would still allow the possibility of selling bonds later in the year if the economy improves, he said. It would also offset the expected drop in sales tax income with money to spare.

Schillerstrom suggested using the remaining $1 million to give raises to prosecutors and cover increasing insurance costs for county employees.

State’s Attorney Joseph Birkett has been lobbying for 11 percent raises for his assistants to make their salaries more competitive with their counterparts in neighboring counties.

Schillerstrom originally said he wanted to wait until a salary study is completed next year to address the issue, but changed his mind after meeting with Birkett last week.

Despite the difficult economic times, the county will bring in about $1 million more revenue than expected in 2008 and will spend about $10 million less than budgeted, said Fred Backfield, the county’s chief financial officer.

The chairman has proposed using $7.5 million of that surplus to create a one-time capital improvement fund that could be used to pay for some of the projects listed in the DuPage 2013 plan.

In an informal show of hands at Monday’s meeting, the majority of board members showed support for Schillerstrom’s revised proposal.

Brien Sheahan, R-2nd District, of Elmhurst has been the most outspoken critic of the county’s sales tax revenue projections for the next five years, which show increases of about 4 percent each year from 2010 to 2013 after slower growth next year.

Sheahan said he is unsure if he will vote in favor of the budget.

“Adopting more conservative — I think realistic — revenue projections for next year is a step in the right direction,” he said.

He is concerned the current economic downturn will last more than one year and force the county to consider widespread budget cuts like those that were proposed last year, he said.

The board must approve a budget by Sunday. The county’s 2009 fiscal year begins Monday.

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