2/29/2008

BREAKING NEWS: Cook County Board reaches budget deal, raises sales tax

A deal has finally been struck over at the Cook County Board. The bottom line? A sales tax hike:

Cook County Board President Todd Stroger has reached a deal to raise the county sales tax from .75 percent to 1.75 percent, according to four county officials.

The proposed tax hike would take effect in November 2008. That, coupled with a hike in other taxes, would help balance the budget.

The swing vote, sources said, comes from Commissioner Larry Suffredin - who demanded Stroger give up control of the hospital system to an independent board of outside professionals. In exchange, Suffredin will agree to vote for a 1 percent sales tax hike, giving Stroger his needed ninth vote to make it pass.

The move would give Chicago one of the highest sales taxes in the nation. But that, coupled with other, smaller tax hikes and some cuts, will balance the 2008 budget.

Keep in mind, this isn't a completely done deal yet:

Commissioners are set to re-convene at 6 p.m., but a vote on the tax package might not come until later tonight.

It would be surprising to see this deal fall through, though, after the war that's been waged. But, hey, anything is possible in Cook County.


UPDATE: 3/1/2008 - 9:00am
The deal is done:

Cook County board president Todd Stroger struck the deal with board members just before Saturday's midnight deadline, after a long and contentious budget battle. The board approved a 1 percent increase in the sales tax -- driving Chicago's overall sales tax to 10.25 percent. That's the highest of any major city in the nation.

The sales tax hike will bring in more than $400 million in new cash each year. It will be enacted in November, just in time for the Christmas shopping season.

Stroger also agreed to give up control of the county hospital system to an outside panel of professionals for three years.

Officials from the medical, civic and labor communities will pick 20 nominees to a hospital governing board. Nine of them will then be approved by the Cook County officials.

10.25% sales tax in Chicago. Ouch.

Probably the best way to describe this deal is one step forward - getting the financial cesspool that is the county hospital system out of the county government's hands, even if only for three years - and three steps back - raising a regressive tax and once again having the taxpayers foot the bill for a bloated county government.

Get your shopping in before November!

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Filed Under: Cook County Politics

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