Squeezed counties seek relief

Facing the loss of more than $200 million in annual sales-tax revenue, and needing to replace aging voting equipment, county officials urged lawmakers to send help their way before making final changes to the new two-year state budget.

House Republicans added more than 300 amendments to the two-year budget on Tuesday, but none dealt with the sales-tax loss that will affect counties and regional transit authorities. But there's still time — the House will make more budget changes next week. Next, the

budget will go to the Senate, then to a conference committee in late June, where even more changes will be made.

“No question, it’s something we want to help address,” said Rep. Scott Ryan, R-Newark, vicechairman of the Finance Committee. “We understand the situation it’s putting the counties in. So far, there have been issues with all of the proposals.”

Ohio started charging a sales tax on Medicaid managed care in 2010, which also included a county piggyback sales tax. But four years later, the federal government ordered Ohio to stop, because the tax was not being applied to nonMedicaid services.

In his budget, Gov. John Kasich proposed giving counties and transit authorities money to fully cover their losses through December. After that, he proposed a

single $158 million payment distributed under a new formula designed to direct money toward counties that are more dependent on Medicaid salestax revenue.

Franklin County would get $8.9 million in 2018 instead of the nearly $21 million that the county would normally collect. COTA would get $3.2 million instead of the $8.3 million it usually collects from the tax.

Morrow County Commissioner Tom Whiston said counties want a permanent solution to a revenue source that currently totals 12 percent of his budget. County officials are proposing to impose the sales tax on all managed-care services, and adjust the governor’s proposed franchise fee on managed-care companies.

“That’s a significant loss we can’t afford not to replace,” he said.

The revenue loss would come as counties are having to spend dramatically more to deal with a statewide drugoverdose crisis, said Dr. Kent

Harshbarger, the coroner in Montgomery County, which is on pace to double its overdose rate from 2016.

“All counties are affected, but smaller counties are particularly hard-hit,” he said. “They are seeing death investigations double or triple the entire office budget.”

Lawmakers also are hearing from commissioners and elections officials about replacing voting machines that are more than a decade old.

“We have literally used paper clips and floppy disks to keep our equipment running,” said Tim Ward, president of the Ohio Association of Election Officials. “We scour the internet for used parts and pieces because our vendors no longer keep them in stock.”

Ohio got about $115 million in federal funds to help buy the machines starting in 2005, and most county officials say they cannot afford to replace them without significant help.

Reps. Steve Arndt, R-Port Clinton, and John Patterson, D-Jefferson, proposed $7

million to get the purchases started with a 50-50 state and local split, including counties that have started replacing machines on their own.

“We want to make sure we are identifying the right kind of equipment counties should be considering, and we develop that path forward,” Arndt said.

The amendment didn’t get in the budget, and Rep. Keith Faber, R-Celina, suggested a $1 million program. “I think it’s important that we set this precedent and start moving forward.”

Some expect more funding in next year’s capital budget.

“Everyone is onboard getting something done before the next presidential election,” Ryan of Newark said.

Lawmakers are dealing with a tight budget that, two weeks ago, was said to be $800 million out of balance because of falling revenues.

House amendments reportedly took care of about $550 million of that total, leaving a gap that has multiple senators grumbling that the House is preparing to pass a budget next week that is structurally unbalanced.

“They make some progress toward it, but they leave several hundred million dollars, depending on how you interpret the amendments,” said Senate President Larry Obhof, R-Medina.

For example, some, including the Kasich administration, are questioning whether the House decision not to move long-term-care recipients into Medicaid managed care will really save $132 million.

Obhof also raised doubts that the Senate would support a House plan to add video poker to Ohio racinos. Casinos might challenge the moneygenerating move, and some say it could be an unconstitutional Ohio Lottery expansion.

“The Senate will significantly decrease the amount of money spent in this budget,” Obhof said.