Trumbull sales tax rate probably going up, commissioner says

By Ed Runyan | February 5, 2015 at 12:02a.m.

WARREN

The Trumbull County sales-tax rate is probably going up a quarter of a percent in the coming weeks and months, Commissioner Frank Fuda confirmed Wednesday.

“We’re in a situation where we probably have no choice,” Fuda said. “The governor has taken millions in local government funds, and we’ve lost millions in interest revenue.”

Fuda is part of a chorus of local officials who have criticized Gov. John Kasich for reducing the amount of money the state returns to communities through the local government fund.

Added to that was Kasich’s proposal Tuesday to increase the state sales tax rate by a half-percent to lower state income taxes.

“The governor has a $2 billion rainy day fund,” Fuda said. “He took local government money, plus he wants to build [the state’s rainy-day fund] with sales taxes.”

Meanwhile, Trumbull County’s rainy-day fund dropped to $1.8 million at the end of 2014 from $2.1 million at the end of 2013, and it may well drop lower than that by the end of 2015, said Adrian Biviano, county auditor.

The Government Finance Officers Association recommends a rainy-day fund balance of $4 million, he said. A quarter-percent increase in Trumbull’s sales tax would generate $6 million per year, he noted.

Fuda said commissioners haven’t decided whether to impose the additional quarter percent or put it before voters, but said: “We have to do it as quickly as possible. We listen to the auditor. When he says we’re broke, we’re broke.”

During contract negotiations over the past few months, most county employees received a pay raise of about 30 to 40 cents per hour for 2014, 2015 and 2016. Before that, most workers had not had a raise since either 2008 or 2009, though they continued to receive step increases.

The county expected to absorb about $750,000 more in health care costs in 2015 over 2014 and an equal amount of additional salary and benefits costs.

According to the Ohio Department of Taxation, Trumbull County’s 6.75-percent rate is among the lowest in Ohio. Sixty-five counties’ rates are 7 percent to 8 percent.