MAHONING COUNTY Sharing of revenue to end

The move is a way 'to maintain what we have,' one commissioner said.
By BOB JACKSON
VINDICATOR COURTHOUSE REPORTER
YOUNGSTOWN -- Mahoning County will no longer share revenue from a county sales tax with townships and municipalities.
County commissioners were expected to vote today to place a 0.5-percent sales tax on the ballot for renewal in the March primary election. They'll also follow recommendations of Auditor George Tablack to restructure current debt repayments.
When the tax was approved in 1999, commissioners pledged to set aside a portion for distribution to the townships and municipalities, which use the money for community development projects.
That revenue-sharing program will no longer be attached to the sales tax, said Commissioner David Ludt.
"That's the only way we can go," Ludt said. "This is just to maintain what we have."
The sales tax -- one of two 0.5 percent taxes on the books -- expires Dec. 31, 2004. When commissioners campaigned for its passage five years ago, it was with the promise that a percentage of tax revenue would be set aside and distributed each year to townships and municipalities for development projects.
Commissioners say they will honor that obligation through 2004, but can't afford to continue the program after that. Tablack has said the county's general fund has lost money each of the past five years and will have little or no carry-over by the end of this year.
Down the road
Tablack has suggested that when the county recovers financially, commissioners can consider reviving the revenue-sharing program.
Commissioners had mulled several options for placing the tax on the ballot, including whether to wait until November 2004 to seek renewal. But Tablack has said that would cost the county some $3 million because of a change in state law that would prevent the county from collecting tax revenue for the first three months of the year.
"We can't afford to lose that money," Ludt said, explaining why commissioners opted for the March primary.
Commissioners also were expected to vote today on a temporary budget, appropriating only enough money to get them through the first quarter of 2004.
Budget Director Elizabeth Sublette said she couldn't prepare a full budget because she hasn't yet received an estimated certificate of revenue from the county budget commission.
"I don't want to run the risk of the commissioners appropriating more money than what is available," Sublette said.
About temporary budget
She said the temporary budget of $12 million will be enough to cover basic expenditures such as payroll and utilities until the budget commission meets and certifies next year's revenue.
The temporary budget includes a $2.9 million appropriation for the sheriff's department and $1.2 million for juvenile court.
Tablack, budget commission chairman, said he's holding off until commissioners pass a resolution placing the sales tax on the ballot and takings steps to restructure its debt, which should free up about $3 million in property tax revenue next year.
Both of those actions are on the agenda for today's commissioners' meeting.
Tablack said he wants to be certain the tax is on the ballot and the debt restructuring is done before he offers a certificate of revenue. Like Sublette, he does not want to certify more than would be available.
Sublette said once commissioners get the 2004 certificate from the budget commission, she will prepare a permanent budget for the year based on those projections.
bjackson@vindy.com