FY2020 Budget Outlook – COVID 19 Impact

April 24, 2020

Toni Preckwinkle
President, Cook County Board of Commissioners
Current Financial Landscape
 Economic Pressures on Sales tax
SALES TAX - BY SIC CODE
Annual % Change in GMP vs Sales General
10.00% 1 Agriculture & Manufacturers
9.00%
Merchandise
8.00% All Others 3% 6% Food
0.9
7.00% 9% 7%
6.00% 0.8
5.00%
4.00% Drugs & Misc.
3.00% 0.7
2.00% Retail
1.00% 0.6 12%
0.00%
-1.00% 0.5
-2.00%
-3.00% 0.4
-4.00%
-5.00% 0.3
-6.00%
-7.00% Automotive & Drinking and
-8.00% 0.2
Filling Stations Eating Places
-9.00%
-10.00% 0.1 13% 35%
-11.00%
-12.00% 0Lumber, Bldg,
Hardware
4% Furniture &
Reccesions Gross Metro Product SALES TAX
H.H. & Radio Apparel
4% 7%
• Real GDP is expected to decline by an unprecedented 18% at an annualized rate in the second quarter. -Mark Zandi
Chief Economist of Moody’s Analytics

• J.P. Morgan’s economic forecasts see lasting damage from the COVID-19 shock. A two-quarter GDP contraction is
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expected in both the U.S. (-10% and -25%) and the Euro Area (-15% and -22%)
Economic Pressures on Home-Rule Taxes/Fees
401550 - Hotel Accommodations Tax
4,500,000

4,000,000
Projection Forecast
3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

As the COVID-19 situation in France has worsened, the country’s daily hotel occupancy plummeted to as low
as 3.3% in March

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Budget Impact
Impact of COVID-19 on General Fund
Revenue Projections
300,000,000.0
Forecasted Total Revenue Projected Total Revenue
250,000,000.0
200,000,000.0
150,000,000.0
100,000,000.0
50,000,000.0
-
December January February March April May June July August September October November

Forecasted Net Results

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Impact of COVID-19 on Health Fund
• Since March 15, 2020, gross revenues (charges) have declined by 43%

• Uninsured charges have declined by 52%

• Insured charges have declined by 40%

• Current estimated impact of COVID 19 on patient fee revenues is $60-$75

million, assuming impact is March through June.

• Additional $25 million increase in COVID related expenses

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 Federal Programs addressing COVID-19
Eligible Federal Funding for Cook County:
• FEMA Disaster Relief Fund
• CARES Act:
➢ $150 billion for state, local and tribal governments
➢ $100 billion for hospitals
➢ $45 billion for the Disaster Relief Fund for state, local, tribal and territorial governments
➢ $4.3 billion CDC grants for federal, state and local public health agencies
➢ $400 million in election security grants
➢ $500 billion of municipal notes through Municipal Liquidity Facility Program
Status:
➢ Received $429M in CARES Act funding for the County
➢ $7.1 million is earmarked for CCH from Medicare formula
➢ $11.2 million DSH FMAP funds received for April and will continue through year end
➢ $900k crisis grant awarded to CCDPH and applying for $1M for Telehealth
➢ Closely monitoring Municipal Liquidity Facility Program; Cook County is eligible for $543 million of municipal notes

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Questions?