Union County officials are already making plans for the 2019 budget.
“It seems like we just adopted a budget,” Union County Administrator Tim Hansley recently told a group of county elected officials and department heads.
He said that he and Budget Officer Letitia Rayl would be looking at revenue and other numbers for 2019. Hansley added that they would begin communicating with elected officials and department heads, “so begin thinking about your needs for next year.”
He warned officials that 2019’s budget is, “going to be a little bit tight.”
“Revenues are not heading where they are supposed to be heading,” Hansley said.
County Commissioner Gary Lee said sales tax revenue is down about 2 percent.
“Unless we have a really, really merry Christmas, we are going to be looking at probably a 2 percent reduction in our sales tax for the year.”
He said the county “had been seeing growth at a rate of 3 or 4 percent each year.”
Lee explained that new businesses and increased spending has actually allowed retail sales tax to increase. He said it is the loss of sales tax on Medicaid managed-care organizations has hurt the county.
“The positive news is that we did have growth in the sales tax,” Lee said. “The bad news is two thirds of it got just to take the place of what was taken away from us once again by the folks in Columbus.”
In, 2016, Union County collected about $440,000 in sales tax on Medicaid payments. Lee said that represented about 3.3 percent of the general fund revenue. Several years ago the federal government said states and counties could not impose a sales tax on Medicaid payments. County officials have said that through an agreement with the state and federal government, the county will receive $43,000 this year and none beyond that.
Officials said that loss will be felt next year.
“And the problem is, that just keeps reoccurring every year,” Lee said.
About the same time the commissioners learned they could be losing the Medicaid tax, the county began collecting full revenue from the state’s casino. Ohio casinos pay a 33 percent tax on revenues. Of that money, 51 percent is paid out to Ohio counties, based on population. In 2017 the county received a total $643,443. It appears that number will be higher this year. Through three quarters, the county has received $507,646. Payments for the last two quarters have actually been the highest in the taxes short history.
“The revenue is placed in the general fund via the auditor’s office,” Rayl wrote. “To date the board (of commissioners) has not earmarked the funds for a specific use, although it is on the radar for discussion.”
Union County Auditor Andrea Weaver reported that actual 2017 general fund revenue came in at $23.34 million. In 2016, the county revenue was $21.34 million, a record at the time.
According to the Union County Auditor’s office, the county spent about $19.1 million in 2017. In 2016, the county spent about $18.7 million.
Weaver estimated 2018 revenue at $23.1 million.