Commissioners discuss COVID-19 funding options

Lorain County is examining funding options as guidelines an aid package for Ohio municipalities are being ironed out.

Senate Bill 310 makes a $350 billion package available for Ohio communities to deal with the impact of the novel coronavirus pandemic.

Lorain County commissioners passed a procedural resolution June 17 to receive federal funds under the $2 trillion CARES Act, fulfilling the requirements of Ohio House Bill 481.

Commissioner Matt Lundy noted that when the funding was set aside for local governments, the language in the federal aid package only addressed municipalities with populations of

500,000 or more, which leaves out Northeast Ohio and much of the country.

The state of Ohio developed a formula creating a 55-45 split with 45 percent of the funds going to local governments.

The funding package addresses the economic impact of COVID-19, but for Lorain County, the loss in revenue sources is a revenue issue and not an expenditure issue, Lundy said.

County Administrator Jim Cordes said cities and counties have been hit the hardest in the pandemic with Lorain County having to layoff and furlough employees.

The state gets the lion’s share of income tax revenue while cities and counties are left with more limited revenue streams based a lot on income taxes that are more restricted to certain activities, Cordes said.

A May income tax report indicated the county had a 12 percent dip in tax revenue from March and April and other larger communities in the area saw more than 20 percent reductions, he said.

When Lorain County receives funds they will be required to be used by the end of 2020 and county officials are continuing to examine how they be utilized.

Lorain Mayor Jack Bradley said June 8 the city is expected to receive a $3.3 million aid package as part of the same legislation and city officials were hoping to get creative in what they can do to help residents.