Jim Dey: Champaign County treasurer takes blame as board discord continues

Oct. 17—Champaign County Treasurer C.J. Johnson, speaking to county board members, took sole responsibility for what she called an "oversight" that cost taxpayers more than $2 million in interest income.

Saying she was "disappointed in myself," Johnson said "other things kept coming up" in her office that distracted her from moving roughly $40 million in federal aid money from a low-interest bank account to one paying higher interest rates in the state treasurer's office.

Johnson's comments came during a county board committee of the whole meeting Tuesday that was held, in part, to discuss the foregone interest income.

Both Johnson and some board members tried to put the best face they could on this ugly picture.

"I didn't lose the money. I missed the opportunity to gain the county more money," Johnson said, while acknowledging that "at the end of the day, the buck still stops with me."

The foregone interest issue was disclosed recently by Champaign County Auditor George Danos. Board members criticized Danos for disclosing the issue to the public rather than bringing it to their attention first.

But Danos, who is both running for re-election and campaigning against a referendum calling for the elimination of his office, said he thought it best to bring the issue to the public, whom he called "my boss."

Danos has been engaged in a monthslong feud with county board members who are trying to remove both him and his office. The political gamesmanship has become quite personal, pitting some board members against others.

Board chairwoman Samantha Carter suggested that the failure of county board members to catch Johnson's investment error can be attributed to the board's internal struggles.

"There is so much tension in this building that we've been distracted from the county's business," said Carter.

That tension was evident again Tuesday night when Danos addressed the board during the public-comments period as some county board members seethed.

"You lost $2 million. You want to make it up with additional taxes. You want to get rid of the elected auditor who brought this to the public's attention. ... Is this not yet another case of 'Kill the messenger?'" he said.

Danos' reference to "additional taxes" is related to the proposed quarter-cent sales-tax increase board members have asked voters to approve in the Nov. 5 election.

While virtually all county officials favor the tax increase that would generate an additional $7 million, Danos has argued that money is not needed because county finances are and will continue to be sound.

Danos' comments did not go un-rebutted, and questioning was antagonistic.

One board member, challenging Danos over a delay in completion of an audit of county finances, sarcastically called him "Mr. CPA." That's in response to Danos' penchant for reminding board members that he has the professional qualifications to oversee the independent auditor's office.

Most of the meeting, however, related to the foregone interest income.

Johnson said she has moved the federal funds to accounts bearing higher interest rates.

Records prepared by the auditor showed that Johnson kept amounts ranging from $12 million to $38 million in accounts paying 0.1 percent and 0.2 percent from early in 2022 to August 2024 at First Federal Bank in Terre Haute, Ind.

If that money had been deposited in the higher-interest-paying Illinois Funds account overseen by the state treasurer, the county would have earned an additional $303,853 in 2022, $971,314 in 2023 and $814,525 through August 2024.

To avoid a future investment issue, Johnson suggested the county create an advisory committee to work with her office. But she probably won't be around to see it.

Johnson previously announced that she plans to leave her office early in 2025, two years before her term expires.