MAHONING COUNTY Officials hope to avert cuts in funds from state

Mahoning County gets $12 million from the state each year.
By JoANNE VIVIANO
VINDICATOR STAFF WRITER
YOUNGSTOWN -- Mahoning County officials have been urged to turn to organized labor leaders, business owners and members of the manufacturing and industry sectors to help persuade legislators to spare local governments when considering state budget cuts.
"They're going to experience the effect of the cuts," Larry Long told various administrators Tuesday. "This is a broader issue than governments. It really deals with real people who live in the counties, not just the government and elected officials."
Long, executive director of the County Commissioners Association of Ohio, was invited by the Mahoning County commissioners to discuss possible cuts in state funding that could affect various local programs. Long has warned that the state must somehow fill a projected $4 billion shortfall for fiscal years 2004 and 2005.
Although there is no specific proposal in the Legislature to cut local government funds, Long said it is a possibility.
Sources of funding
The LGF money comes from several taxes, including sales tax, corporate franchise tax, use tax, public utility excise tax and personal income tax. A percentage of those revenues are dispersed among the state's 88 counties.
LGF provides nearly $1.3 billion annually to the state's counties, Long said.
Along with LGF, the state sends $1.1 billion annually to counties from property tax reimbursement funds, he said.
Over two years, cutting those amounts would surpass the $4 billion deficit. It would be a "devastating elimination," Long said.
Hagan 'despondent'
State Sen. Robert F. Hagan of Youngstown, D-33rd, and state Rep. Sylvester D. Patton Jr. of Youngstown, D-64th, attended the meeting with officials and representatives of various county agencies and unions. Hagan said the possibilities discussed left him "pretty despondent."
County Administrator Gary Kubic said the state funnels $12 million into Mahoning County each year.
About 47 percent goes to the county's general operating fund to support various programs. The rest is distributed among townships, municipalities, park districts and libraries.
With the decline in the economy and the uncertainty of the future of the county 0.5 percent sales tax -- voters are being asked to renew it in November -- a cut in state funds "could obviously have catastrophic results," Kubic said.
Long explained that county revenues come from three sources beyond LGF: county sales tax, inside property tax bills and investment income.
Although sales tax income has taken a slight dip or remained stable, and property tax remains stable, investment income has dropped by about 40 percent for counties across the state, Long said.
Worst impact
A cut in LGF will affect townships and municipalities but it will most adversely affect counties and programs such as child support, work-force development and juvenile court, he explained. The cuts could also mean scaling back programs for the ill, disabled and needy or reducing health-care benefits for county employees.
He said the state must work harder at closing loopholes and reducing tax exemptions to broaden the tax base and continue to provide county funding. Otherwise, he added, state officials must reduce the amount of programs that county governments are required to provide.