TREASURER'S OFFICE Budget cuts slice Tax Installment Plan

The treasurer is handling only mandated services.
YOUNGSTOWN -- Budget cuts in the Mahoning County Treasurer's office caused by the loss of sales-tax revenue will result in the cancellation of a program to help county residents pre-pay their property taxes.
Treasurer John B. Reardon scheduled a press conference today in the courthouse rotunda to announce the curtailment of the Tax Installment Plan the office has had in place for many years.
TIP allowed property owners to pre-pay their real estate taxes in monthly installments rather than paying them in larger amounts during the twice-annual collections.
Property taxes are collected in the winter and summer each year.
In TIP, taxpayers would authorize the treasurer to act as their agent for purposes of receiving their tax bills and applying pre-payments to the real estate taxes due. The pre-payments would be placed in an escrow account.
The first monthly payment for taxes to be paid in August using TIP would have been March 10, he said, but his office doesn't have the money for postage to mail payment coupons and the needed envelopes to program participants.
"We have always enjoyed offering TIP," Reardon said. "Some taxpayers, especially senior citizens, found it more convenient to pay monthly rather than paying a larger amount when taxes are due twice a year."
Budget constraints
Reardon said the program's cancellation for this year is directly related to the failure of voters to renew the half-percent sales tax and the "significant cut in my budget appropriation this year."
Reardon had requested a budget of $935,250 for 2005, but he received $763,000.
The treasurer said he has just one person in his office administering TIP, and other office staff use part of their time to help out.
"In this time of budget cuts, we must only provide the mandated services," Reardon said, adding he hoped to reinstate TIP in 2006.
Officeholders submitted $53.9 million in budget requests for this year, but county commissioners pared that figure to the $39.9 million the county will have to spend in 2005.
The county lost one-third of its revenue when the sales tax expired Dec. 31, 2004. Voters turned down two efforts to renew it last year. Commissioners have said the tax brought in about $13 million. The county has another half-percent sales tax that brings in about the same amount. That tax expires in 2007.
Officeholders have said budget cuts would result in either layoffs or elimination of services. Eight custodians, a custodial manager and a secretary in the county's facilities and maintenance department will be laid off in about two weeks.
The commissioners, realizing more revenue is needed to run county government, have placed the half-percent sales tax for five years on the May 3 primary ballot.
Even if the tax passes, however, because of statutory provisions for its collection and distribution, the county wouldn't start receiving sales-tax revenue until 2006, commissioners said.