Cook County Independent Revenue Forecasting Commission Meeting - July 30, 2026
Cook County Independent Revenue Forecasting Commission Meeting - July 30, 2026
The Cook County Independent Revenue Forecasting Commission (IRFC) met on July 30, 2026, at 5:30 PM to review quarterly updates, discuss potential revenue modifications to address structural deficits, and consider preliminary recommendations. The meeting included a detailed presentation on sales tax dynamics, property tax adjustments, and other revenue options, as well as an update on ARPA sustainability.
Consent Calendar
- Approval of Minutes: The minutes from the June 30, 2026, meeting were moved by Commissioner Phelan, seconded by Commissioner Merriman, and unanimously approved.
Discussion Items
- Sales Tax Rate Increase Scenario: Explored increasing the county sales tax rate from 1.75% to 2% effective January 1, 2027. Estimated revenue impact: approximately $141 million higher in FY2027 and $220-230 million annually in FY2028 and outyears (a 14% increase). Commissioners raised concerns about consumer tax avoidance and reduced consumption, noting the model assumes no change in purchasing behavior. Discussion included the need for elasticity estimates and analysis of past rate increases.
- Property Tax Levy Modifications: Two scenarios presented: (1) adjusting the base levy (unchanged since 1996, currently $720 million) to keep pace with inflation starting in 2027, yielding about $20 million additional general fund revenue in FY2027; (2) a one-time adjustment retroactive to 2020, yielding about $170 million in FY2027. Commissioners discussed alternatives such as keeping the tax rate constant.
- Amusement Tax: Two proposals: (1) a flat 3% rate across all tiers, estimated $15-16 million annually; (2) a tier restructure with streaming services added, estimated $45 million annually. Commissioners noted elasticity concerns and that the estimates assume no behavioral change.
- Gambling Machine Tax: Proposed increase in emblem cost from $200 to $500 for video gaming terminals, estimated $3 million annually.
- Alcoholic Beverage Tax: Proposed 41% increase (cumulative inflation since 2012) on rates, estimated $14.8 million in FY2027 and $14.5 million in outyears, with declining consumption trends noted.
- Other Tobacco Products Tax: Proposed expansion to include absorbable nicotine and all vapor products regardless of nicotine content, assuming 25% compliance, estimated $2.2 million annually.
- ARPA Sustainability Reserve Update: The county established a reserve to phase down ARPA programs. Twelve programs will be sustained, with $52.7 million allocated in FY2027. Projected gaps: $4-3 million total between 2028 and 2030 (2028: $20 million funding vs. $23.3 million gap). Strategies include external funds, program revenues, or scaling down.
- Sales Tax Deep Dive: Analysis of taxpayer categories (PL vs. CL) showed CL (changing location) share of county sales tax rose from 15-20% before 2025 to 30-35% in 2026, attributed to legislative changes (2021 and 2025 acts). Commissioners questioned whether growth is sustainable and noted the need for better data definitions.
- Preliminary IRFC Recommendations: Three recommendations presented: (1) fiscal sustainability for ARPA programs; (2) evaluate validity of methods used by the county to assess potential modifications to existing taxes in the general fund; (3) establish a protocol to evaluate new and alternative revenue sources. Commissioners requested clarification on separating methodology from policy and the scope of recommendations. Recommendations will be finalized in August and submitted to the CFO by August 1, with a written report due in September.
Key Outcomes
- Minutes approved.
- No formal votes on recommendations; they are preliminary and will be finalized by August 2026.
- Next meeting: Originally scheduled for Wednesday, August 26, 2026, but Commissioner Phelan requested a date change due to a teaching conflict. The commission agreed to explore an alternative.
- Next regular meeting: October 2026, where the long-term forecast and executive recommendation for FY2027 will be presented.
Meeting Transcript
The meeting of the Cook County Independent Revenue Forecasting Commission will now come to order. I will now call the role. Chair. Here. Commissioner Dabala here. Commissioner Mayerman. Here. Commissioner Phelan. Here. Chair, you have a quorum. Good evening, everyone, and welcome to our meeting of the Independent Revenue Forecasting Commission. And my first is Chair. It's nice to be here with all of you tonight. Before reviewing tonight's agenda items, I wish to recognize the hard work and collective efforts of everyone in this room, the Bureau of Finance Team and the dynamic commissioners. Thank you for everything you do. Today we're going to discuss some potential recommendations of the IRFC, which will not be finalized until August. Additionally, we will provide quarterly updates, which include updates on ARPA sustainability. We are also going to go through some exploratory scenarios, assessing methods to grow existing revenues. And we can get started with the meeting. The first item on the agenda is the approval of the minutes from the meeting of June 30th, 2026. Chair, we need a motion to approve the minutes to proceed. Is there a motion to approve the minutes? Yes. Is there a second? Okay. Okay. The motion to approve has been moved by Commissioner Phelan and second by Commissioner Merriman. All of those in favor signify by saying yay. All of those opposed signify by saying nay. Chair, uh the A's have it. And I'm sorry, and the meeting minutes will be filed with the Cook County Secretary of the Board. The next item on the agenda is a presentation from the team covering quarterly updates, the county sales tax, and the preliminary IRFC recommendations. Thank you, Angela. So we'll have some updates this evening on some of our deliverables as they relate to the uh principles of the IRC here and recommendations of this body, which we'll get into on the next slide. So regarding um the impact of um OBA, the OPA provisions on the Health Enterprise Fund. Uh we recently analyzed the past uh budget from the state. Uh there wasn't uh a lot of information in there that would change any guidance as far as forecasting goes for the health fund. So, you know, we'll be continuing to monitor uh any information that comes down to the state continuing to work, uh partner with our friends at the hospital. Um is that the state is continuing to fund the health benefit for immigrant seniors, their budget, uh, which we have built in. Uh we have reflected that in our uh June forecast. Um, ARPA sustainability. Um the county is currently fine-tuning its allocation strategy for the ARPA reserves, which it had set up a couple years ago. Um, and then revenue growth options, which we'll dive into on the next couple of slides. So uh this year, the team we conducted an analysis of county tax revenues, uh identifying reasons for uh slower declining growth in some revenues, understanding uh why they're stagnant, uh, and we shared some updates at the January and April meetings uh on our findings. Um back to slides here, we'll walk through some uh exploratory scenarios uh what modifications would look like to uh existing taxes in the county's budget. Okay, so as Angela noted, um we'll be going through some um of the county's revenue sources in this section, uh exploring some scenarios, what different modifications and the estimated revenue impacts would potentially look like, as well as providing some background into our methodologies to estimate these impacts. Um, and so the first revenue uh here that we looked at is sales tax, seeing what a potential modification would look like uh in the county sales tax. So the this the county's current sales tax rate is 1.75%. And so we have a scenario of here of what that would look like if it were to increase a quarter percent to 2%. Um so to estimate uh what the revenue impact would be from this modification, uh, and we'll also be talking about this the sales tax a bit more uh in the presentation.
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