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Panel protests Medicaid sales tax loss
NEW MIDDLETOwN
The Mahoning County commissioners passed a resolution Monday asking state legislators to stop the potential loss of local government revenue associated with the Medicaid managed-care organization sales tax.
The U.S. Centers for Medicare and Medicaid Services has ruled that, beginning in July 2017, sales tax no longer can be targeted toward insurance companies under contract with the state to cover Medicaid.
Applying state taxes to Medicaid managed care organizations, but not to all managed-care organizations, is impermissible, U.S. Centers for Medicare and Medicaid Services officials wrote to state health and Medicaid officials in a July 25, 2014, letter.
CMS told Ohio to comply with that standard before the new state budget cycle begins in July 2017, or abolish the sales tax on Medicaid managed care.
Medicaid is a jointly funded federal and state health insurance program for low-income people.
Looming annual losses are $3.7 million for Mahoning County, $2.7 million for Trumbull County, $2.1 million for Columbiana County and $823,578 for the Youngstown-based Western Reserve Transit Authority.
Total sales-tax distributions to those entities in 2015 were $38.8 million for Mahoning County, $25.9 million for Trumbull County, $16.8 million for Columbiana and $8.6 million for WRTA.
In other action, the commissioners awarded:
A $95,481 contract for concrete pavement rehabilitation on Meridian Road at the Interstate 680 interchange to Thomas Pallotta & Sons of Youngstown.
This is a joint project among the county, the city of Youngstown and the state, with the state paying $75,000 of the cost because it is using Meridian as a haul road for vehicles engaged in the Interstate 80 widening project, said county Engineer Patrick Ginnetti.
This project is a temporary repair until a permanent improvement of that part of Meridian can be completed several years from now, he added.
A $69,536 contract for the repaving of Jefferson Street in Campbell to Americon Industrial Services LLC of Austintown.
A $36,651 contract for paving of First Street in Lowellville to Foust Construction of Youngstown.
Before their meeting, commissioners met with Sarah Lown, an economic-development specialist with the Western Reserve Port Authority; Doug Baer, president of the Springfield Community Chamber of Commerce; and New Middletown village and Springfield Township officials.
“We have had some concerns over the last couple of years. We seem to have more commerce leaving than we have coming. ... I guess I’m asking for some guidance,” Baer told the commissioners.
Area businesses that have closed include the Hummel Gift Shop, Town and Country Nursery and Sparkle Market.
Lown said the two communities need to market their strengths, emphasizing the excellent local schools, the NiSource natural gas processing plant and the strong local agricultural community.
“Without sewer, Springfield is just going to shrivel up and die. We can’t sell houses,” or attract construction of new businesses, Baer said of New Springfield.
Carol Rimedio-Righetti, chairwoman of the county commissioners, urged village and township officials to continue the dialogue with county and port authority officials concerning economic development.