Lake County Health & Community Services Joint Budget Hearing - October 21, 2025

The Joint Budget Hearing for the Health and Community Services (HCS) departments and the Finance Administrative (FA) Committee convened on October 21, 2025, to review and approve the proposed Fiscal Year 2026 budget. The meeting featured presentations on the overall budget preparation process, including new collaborative review methods and labor cost adjustments, followed by specific departmental presentations and deliberations on the Workforce Development, Community Development, Video Gaming, Opioid Settlement, Regional Office of Education, and Health Department budgets.

Consent Calendar

• No items were added to the consent calendar; the Finance Committee Chair suggested deferring final action on amendments until the end of the following day to allow for an aggregate perspective on budgetary impacts.

Public Comments & Testimony

• Carl Zegan: Expressed full support for the board to invest in efforts to clean up local lakes using less toxic methods to improve water quality for visitors and residents.
• Robert Bryson: Expressed support for expanding sewer systems in the chain of lakes area, citing that 80% of the 8,000 septic systems are within 1,000 feet of the lakes and negatively impacting water usability.

Discussion Items

Overall Budget Process & Labor Costs

• Michael Wheeler (Budget Manager): Presented the FY2026 budget preparation, highlighting the introduction of a "collaborative peer review" where department heads presented new program requests to one another. He confirmed that compensation study increases are now fully loaded into department budgets for FY2026. He noted a 3% lump-sum increase for non-union employees and a 1.75% increase to salary tables, with a blended health insurance rate increase of 7.4% offset slightly by reductions in IMRF and SLEP pension rates.

Workforce Development Department (Item 8.H1)

• Jennifer Sereno (Director): Presented a budget of $8,985,501, a 24% increase in base funding due to formula grants linked to higher unemployment rates. She detailed that $5 million (56% of the budget) directly supports participants through wages, tuition, and assistance.
• Member Cunningham: Expressed strong support for the program, noting its effectiveness with youth and the community.
• Member Clark: Inquired about reporting and performance metrics for the Skillbridge program; the director confirmed internal tracking of metrics and external reporting to the Department of Defense.
• Member Cunningham: Expressed concern regarding the 82% federal reliance but was reassured by the stability of current grants through 2027.

Community Development (Item 8.H2)

• Dominic Strezzo (Administrator): Presented a $5,161,405 budget (an 8% increase), noting that funds are primarily federal HUD grants (entitlement programs) used for affordable housing and homeless services.
• Member Cunningham: Expressed full support, praising the department for fair funding allocation and strict eligibility requirements rather than handouts.
• Member Altonberg: Expressed pride in the housing programs and asked about federal funding risks; the director clarified that while policy implementation is a concern, the funding itself remains stable but delayed.

Video Gaming (Item 8.H3)

• Nicole Sutton (Administrator): Addressed a policy amendment increasing the retained gaming revenue cap from $800,000 to $825,000 to cover rising costs for the 211 information and referral system via United Way.
• Member Cunningham: Expressed confusion regarding the role of the state versus the county in funding 211 services.
• Administrator Sutton: Clarified that Lake County initiated the program and it remains a partnership, with the increase specifically allocated to software costs.
• Member Maine: Inquired about the policy cap; Sutton confirmed it is a fixed dollar amount subject to future policy changes.

Opioid Settlement Fund (Item 8.H4)

• Ashley Watson (Opioid Coordinator): Presented a budget including $700,000 for grants, part of a larger pool expected to reach $9.2 million by 2030. She emphasized a strategic, evidence-based spending plan.
• Member Cunningham: Encouraged faster expenditure of funds given the urgency of the opioid epidemic.
• Watson: Stated an intent to spend approximately $700,000 annually to extend the funds through 2030.

Regional Office of Education (Item 8.H5)

• Dr. Karen Kerner (Director): Presented a budget increase driven by moving to a new 42,000 sq. ft. facility in Vernon Hills (a lease, not a county purchase) which will house county-mandated positions.
• Member Altonberg: Inquired about the square footage mandates; Dr. Kerner explained the county portion of the rent increased due to the larger mandated space for county-funded staff, though the county's net financial exposure remains unchanged as Dr. Kerner covers the excess from other funds.
• Member Cunningham: Expressed strong support for the office's work with schools and students.

Health Department (Item 8.H6, 8.H7, 8.H8, 8.H9)

• Chris Hoff (Executive Director): Presented a nearly $100 million budget facing uncertainty due to potential federal grant terminations (an $11 billion cut nationwide) and Medicaid restrictions. Key initiatives include reopening the substance use withdrawal management unit and value-based care contracts.
• Member Cunningham: Expressed concern about staffing shortages but noted the department's efforts.
• Member Clark: Inquired about the decrease in benefits (attributed to young employees opting out of premium plans) and confirmed vacancy savings were retained in contingency accounts.
• Member Main: Inquired about the Tuberculosis clinic budget increase ($347k to $1M), clarified by staff as the result of fully staffing positions and a fund balance analysis requiring higher property tax contributions.
• Member Cunningham: Inquired about landfill fees and the solid waste management tax, which is projected to decline as landfills approach capacity; staff confirmed a fund balance of over $2M is reserved for future inspections post-closure.

Key Outcomes

• Item 8.H1 (Workforce Development): Approved by HCS and FA Committee (Motion by Vice Chair Altenberg, Second by Vice Chair Cunningham; Finance motion by Member Clark, Second by Member Hewitt).
• Item 8.H2 (Community Development): Approved by HCS and FA Committee (Motion by Vice Chair Altenberg, Second by Member Casmin; Finance motion by Member Clark, Second by Member Falitzik).
• Item 8.H3 (Video Gaming): Approved by HCS and FA Committee, amended to reflect the $25,000 increase for 211 services (Motion by Vice Chair Cunningham, Second by Member Casmin; Amendment motion by Chair Cunningham, Second by Member Casbin.
• Item 8.H4 (Opioid Settlement): Approved by HCS and FA Committee (Motion by Member Cunningham, Second by Member Kenisnik; Finance motion by Member Hewitt, Second by Member Peterson).
• Item 8.H5 (Regional Office of Education): Approved by HCS and FA Committee (Motion by Vice Chair Cunningham, Second by Member Kenisnik; Finance motion by Vice Chair Park, Second by Member Falitzik).
• Items 8.H6 through 8.H9 (Health Dept, TB, Solid Waste, Special Services): Approved by HCS and FA Committee in a joint vote.
• Next Steps: The Finance Committee will adjourn until October 28, 2025, to finalize all budget amendments and prepare for the full County Board approval meeting scheduled for November 18, 2025.