Posted by John Byrne at 12:42 p.m.
Democratic Cook County Board President candidate Toni Preckwinkle said today that she won’t eliminate the rest of a controversial county sales tax increase until 2012 at the earliest.
That’s because budget experts told her next year’s shortfall could reach $500 million due to a poor economy, elimination of federal stimulus cash and the already-approved half-cent sales tax reduction.
"I see ahead a very, very difficult budget year," Preckwinkle, the city’s 4th Ward alderman, told reporters at a news conference with Mayor Richard Daley to discuss a trial health care program for city schools.
Preckwinkle, who won the Democratic primary over Board President Todd Stroger and two others in February, campaigned on a pledge to eventually get rid of the entire one-percentage-point sales tax increase. The total sales tax rate in Chicago is 10.25 percent, but that will drop to 9.75 percent on July 1 after commissioners voted to roll back part of the tax hike.
Preckwinkle said she would cut the rest of the sales tax increase over time as she found new sources of revenue and ways to reduce costs. She said one possible way to cut local tax costs is to secure more federal funding for the jail and health system.
The 2011 county budget year starts Dec. 1 — before Preckwinkle would take office if she is able to defeat Republican Roger Keats and Green Party candidate Tom Tresser in the Nov. 2 election. The winner is expected to have a hand in shaping the new budget, which does not have to be approved until after the start of the next president’s term.
Preckwinkle said today she will do away with the rest of the Stroger increase, but added that the sharper picture she now has of the county’s financial trouble will cause her to proceed with caution.
"Since (the) February 2nd (primary election), we’ve put a lot of energy into figuring out what we’re going to be heading into, and the short answer is, we’re heading into a buzz saw," Preckwinkle said. "So – given the loss of revenues in the way I’ve described… we’re just going to try to get a handle on things when we walk in the door, and look down the road for opportunities to make further cuts in the sales tax."
The earliest that could happen would be 2012, she said.
"I’m not sure (I’ll be able to repeal it in 2012)," Preckwinkle said. "I’m hopeful that the economy will pick up, and that a rising tide will lift all boats, and that the finances of local government and state government and national government will improve in part because the economy is improving. We’ll see what happens."
Preckwinkle also reacted to Tribune and Fox-32 reports that the Stroger administration recently awarded a series of census outreach contracts at just below the $25,000 threshold that would require approval from the county board. That’s "not the choice I would make in his place," Preckwinkle said.