Mahoning County agencies prepare for state-funding loss

YOUNGSTOWN — The accelerated phase-out of state payments to localities to replace tangible personal property tax revenues will require various Mahoning County government departments to rethink their long-range budget planning to compensate for the loss, officials said.

The tangible personal property tax was eliminated in 2005.

“These are cuts that have been anticipated, but, I think the accelerated path of cuts is going to cause problems,” for the county’s boards of developmental disabilities and mental health and Children Services Board, said John A. McNally IV, chairman of the county commissioners.

In compensating for the revenue loss, McNally said he expects those boards to focus first on cutting expenses.

Information provided this week by the Ohio Department of Taxation shows the combined TPP reimbursements to Mahoning County in the mental health and developmental disabilities category dropping from $2,111,050 last year to $1,661,640 this year to $1,212,231 in 2012, with the number dropping to zero in 2015.

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