East Central Reporter

For several years, questions have arisen about the handling of payroll duties in Shelby County, Illinois. Concerns have been raised regarding legal opinions and statutory responsibilities within local government offices.

In September 2021, under the guidance of former State’s Attorney Nichole Kroncke, the county board attempted to remove payroll responsibilities from the treasurer's office. This decision followed revelations of payroll malfeasance in various departments. Former board member Dereck Pearcy questioned the statutory authority for outsourcing payroll but received no satisfactory answer.

The resolution cited 55 ILCS 5/5-1087, which allows a county board to impose additional duties on county officers. However, Pearcy highlighted relevant Attorney General (AG) opinions and case law that contradicted this action.

On December 31, 2024, Treasurer Erica Firnhaber sent an email with AG opinions indicating that her office should not handle payroll processing. She stated that this responsibility lies with the County Clerk and announced she would cease processing payroll after January 31, 2025.

Board Member Sonny Ross responded quickly but inaccurately summarized Firnhaber's declaration as a complete cessation of payroll processing by her office moving forward.

The AG opinions supported Firnhaber's stance that payroll is a duty of the County Clerk. This information had been previously mentioned by Pearcy two years prior but was overlooked due to insufficient research by past legal counsel.

Current State’s Attorney issued a memorandum in July 2024 suggesting that while no single office is responsible for processing payroll, it has traditionally been handled by the treasurer's office for over four decades. The opinion was challenged based on existing AG opinions and longstanding legal interpretations.

County Chairman Tad Mayhall noted historical practices in his communication with Firnhaber but did not address whether those practices were legally correct.

The United Counties Council of Illinois has consistently advised against delegating statutory duties such as payroll processing from one elected official to another without proper authority due to potential risks of fraud and malfeasance.

State’s Attorney further opined that refusal by any officer to perform assigned duties could result in penalties or removal from office. However, questions remain about accountability for assigning inappropriate duties across offices without legal basis.

The County Clerk requested alternative arrangements for handling payroll due to increased workload related to elections and other statutory obligations.

Firnhaber initially resisted outsourcing due to perceived statutory obligations and concerns over unnecessary taxpayer expenses. Recent issues with documentation led her to conclude she should not perform duties belonging elsewhere according to law.

It remains unclear how these changes will impact costs if outsourcing becomes necessary following these revelations about long-standing practices within Shelby County government operations.

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