Title
Resolution Approving an Emergency Appropriation of $2,000,000 to Establish a Federal Funding Contingency Reserve from the General Fund Fund Balance.
Staff Summary
• Since early indications of potential federal funding interruptions, the Lake County Administrator's Office has been proactively coordinating with departments across the County that receive and rely upon federal funding to assess potential risks, evaluate possible operational impacts, and discuss options for contingency planning measures.
• The County Administrator recommends formalizing internal preparedness efforts by establishing a funding reserve, supported by General Fund revenues, to provide a 60-day contingency in the event of any sudden federal funding reduction, loss, or pause. This reserve will help ensure continuity of operations within affected departments while alternative solutions and long-term options are evaluated.
• Decisions regarding the use of these funds will be delegated to the County Administrator, with regular reports provided to the Financial & Administrative Committee. The Administrator will report any expenditures from the reserve and, in coordination with the affected department, present recommendations for long-term solutions to address any program or operational impacts resulting from sudden or anticipated federal funding changes.
• The Administrator has developed criteria and documentation requirements related to accessing the reserve, including verification of federal funding interruption and a demonstrated operational need.
• Since the need for this contingency was not anticipated during Fiscal Year 2026 budget preparation, the funding will come from General Fund fund balance. There are sufficient funds available in fund balance reserve for this purpose. Any unused funds in the Federal Funding Contingency Reserve can be reappropriated back into the General Fund upon County Board approval.
Body
RESOLUTION
WHEREAS, the Lake County Administrator's Office has proactively coordinated with departments across the County that receive and rely upon federal funding to assess potential risks, evaluate operational impacts, and develop contingency planning measures; and
WHEREAS, the County Administrator recommends establishing a funding reserve, supported by General Fund revenues, to provide a 60-day contingency in the event of any sudden federal funding reduction, loss, or pause; and
WHEREAS, this reserve will help ensure continuity of operations within affected departments while alternative solutions and long-term options are evaluated; and
WHEREAS, decisions regarding the use of these funds will be made by the County Administrator, with regular reports provided to the Finance & Administrative Committee; and
WHEREAS, the Administrator will report any expenditures from the reserve and, in coordination with the affected department, present recommendations for long-term solutions to address any program or operational impacts resulting from sudden or anticipated federal funding changes; and
WHEREAS, the Administrator has developed criteria and documentation requirements related to accessing the reserve, including verification of federal funding interruption and a demonstrated operational need.
NOW, THEREFORE, BE IT RESOLVED, by this County Board of Lake County, Illinois, that an emergency appropriation in the amount of $2,000,000 is hereby authorized in the General Operating Expense (GOE) budget for this specific purpose; and
BE IT FURTHER RESOLVED, that the authority to use, allocate, and distribute these contingency reserve funds is delegated to the County Administrator; and
BE IT FURTHER RESOLVED, that the County Administrator shall report to the Financial & Administrative Committee any use of funds, any proposed plans or options when a federal funding interruption occurs.
DATED at Waukegan, Illinois, on March 10, 2026.