Kane County Finance Committee Eyes Treasurer's Interest Income to Close 2026 Budget Gap

Treasurer Chris Lawson told the Kane County Finance and Budget Committee on Sept. 24 that the county's interest income has grown substantially and could help bridge a gap in the proposed 2026 budget. "The interest income is now like $63,000,000," Lawson said during his monthly report, adding that interest and other treasurer revenues could be applied to the general fund under certain legal constraints.

Lawson urged the committee to consider allocated interest as part of the revenue picture and asked that board members consult with the treasurer's office about how interest has been generated and could be used. "There are restrictions on it. That's fine. We follow all the rules," Lawson said. He described interest earnings as a significant revenue source and said the treasurer's office produced more revenue than expenses last year, citing a $1,000,000 positive contribution from non-interest revenues.

The committee chair and several members said elected officials and department heads have been asked to submit revised 2026 budgets; three elected officials had already discussed revisions with the committee. Chair remarks noted that departments agreed to cuts and hiring freezes and that the committee expects any elected official seeking a change to file a revised budget within a week. "If not, we will be forced to continue on with our expense allocation that was approved unanimously by the board," the chair said.

Committee members and the treasurer discussed legal opinions and the technical limits on reallocating interest or other designated funds. Lawson said legal guidance and coordination with the state's attorney are under way to determine what portions of interest or other fund balances can be used to reduce the general fund request without tapping reserves. The chair said that use of interest earned by the treasurer might help avoid drawing on reserves for 2026 and potentially ease next year's larger projected shortfall.

Committee finance staff reported key revenue indicators: sales tax and motor fuel tax collections were slightly higher than expected for the year, while local use tax receipts are lower because of a state law change. Finance Director Hopkinson said the current forecast still assumes using roughly $27,000,000 in general-fund balance over the remainder of the year.

The committee approved several routine resolutions related to accounts and transfers during the meeting, including an emergency transfer of $440,926.75 from the JJAC/AJC refunding debt service fund (Fund 06/23) back to the general fund after the related debt was paid off. The chair said the committee is also exploring whether other elected officials could use interest earned on their own special funds to help balance their budgets.

Why this matters: County leaders are seeking ways to close an immediate budget gap without reducing essential services or drawing deeply on reserves. How the committee resolves the legal and accounting questions about interest allocation will determine whether some of the 2026 shortfall can be met without additional cuts or one-time transfers.

Committee direction and next steps: The committee requested revised budgets from elected officials who have not yet complied and asked the treasurer and the state's attorney to continue reviewing authorities for interest allocation. The chair asked staff to communicate any written acknowledgement to elected officials who have cooperated on reductions.

Attribution and context: Treasurer Chris Lawson made the revenue and interest statements during his monthly report. Finance Director Hopkinson presented tax revenue indicators. The committee discussed next steps and legal review; no new ordinance or statute was adopted at the meeting.

For the record: The committee discussed using interest earned as revenue and whether that would be permissible under state statute and existing county rules; legal review is ongoing.