Joint FA & HCS Budget Hearing for FY2027 - October 22, 2026

The Financial and Administration (FA) Committee and the Health and Community Services (HCS) Committee held a joint budget hearing on October 22, 2026, starting at 8:34 a.m., to review the recommended Fiscal Year 2027 budget for Lake County. County Administrator Patrice Sutton and Budget Manager Michael Wheeler presented an overview of the $732 million total budget, an 8% increase, highlighting revenue growth from economically sensitive taxes and a 2.7% CPI property tax increase. New program requests were consolidated in the General Operating Expense (GOE) budget. All departmental budgets presented were ultimately approved by both committees, with one significant discussion deferred.

Discussion Items

FY2027 Budget Overview

• Administration presented the budget framework for property tax operating funds, noting increases in special revenue ($13M), internal service ($19M), and enterprise funds ($8M). A merit pool for non-union employees was introduced alongside a 2.7% cost-of-living adjustment.
• A mistake in the Sheriff's department vacancy savings calculation was acknowledged and will be corrected using GOE contingency funds.
• Chair Frank commended the consolidated approach to new program requests, allowing holistic decision-making.

Veterans Assistance Commission (VAC) Budget

• Superintendent reported a $34.6 million benefit return to Lake County, a 5.4:1 return on property tax investment. The VAC plans to break ground on a new facility in one year.
• Motion to approve made by Member Litig and seconded; approved unanimously.

Workforce Development Budget (8.H1)

• Director Jennifer Sereno presented a budget funded primarily by federal WIOA grants, which decreased slightly due to low unemployment. The department placed 734 residents (66% of those served) into employment, bringing $31.5 million in wages to the county. Summer youth program placed 175 high school students.
• Staffing remained at 41 despite a chart error. Two new positions for the Digital Growth Initiative are budgeted in GOE.
• Approved unanimously.

Community Development (CDBG) Budget (8.H2)

• Dominic Strezzo presented a stable $5.1 million in HUD entitlement funds, with two-thirds directed to affordable housing. The department’s annual goal is to support 40 new rental units, a figure acknowledged as constrained by factors beyond funding alone.
• Members confirmed that funding expectations are consistent with prior years despite federal uncertainty.
• Approved unanimously.

Video Gaming Fund Budget (8.H3)

• $825,000 directed to community development, with set-asides for addiction services and gambling treatment. Funding is expected to remain flat.
• Approved unanimously.

Opioid Settlement Fund Budget (8.H4)

• Coordinator Ashley Watson presented a budget allocating $1 million for community grants, with $4 million held in reserves. Only 45% of the expected settlement has been received; some payments extend to 2038.
• Emergency appropriations may increase spending if worthy applications arise, as occurred in FY26.
• Members requested better visibility into fund balances; administration agreed to explore providing that information.
• Approved unanimously.

Regional Office of Education (ROE) Budget (8.H5)

• Dr. Carner presented a flat budget and proposed moving 10 staff positions from county payroll to a reimbursement model, similar to his existing setup for grant-funded employees. He argued this would streamline administration under the new Workday system.
• Several members expressed hesitation: Member Altenburg called for a broader policy discussion, and Member Maine noted no documentation was provided. County Administrator Sutton suggested deferring the decision to allow full conversation, and Dr. Carner agreed.
• The budget was approved without the staffing model change; the matter will return later as a separate item.
• Members praised the ROE's performance metrics (page 125 of the budget book) and its expanded services.

Health Department Budgets (8.H6–8.H10, Taken Together)

• Executive Director Chris Hoff and Deputy Sam Johnson presented budgets for the Health Department, TB Special Service Area, Solid Waste, Loon Lakes, and the Health Department Capital Fund.
• The health department budget reflects an overall increase despite a reduction of 15 funded positions (to 831), driven by benefit cost increases (22% rise) and federal Medicaid changes. The closure of the North Shore Health Center and prenatal program were noted.
• Director Hoff reported that 29% of patients are now uninsured, up from 23%, due to anticipated Medicaid work requirements and redeterminations.
• The Health Department Capital Fund ($1 million, new) will use Medicaid match funds for parking lot repairs, access control, and fire sprinklers.
• Members questioned the need to integrate these capital projects into the countywide capital improvement plan for better visibility and prioritization. Administration indicated openness to greater alignment in the future.
• All five items were approved unanimously.

Key Outcomes

• All budget items (VAC, Workforce Development, Community Development, Video Gaming, Opioid Settlement, ROE, Health Department and associated funds) were approved by both committees.
• Decision on the Regional Office of Education staffing model transition was deferred for later discussion, recognizing the need for a broader county policy.
• County administration will work to provide more detailed fund balance information for the Opioid Settlement account in future budget documents.
• The health department’s capital projects will be considered for inclusion in the county’s capital improvement planning process.