VIDEO (3:12)
STARK CO BUDGET DIRECTOR
CHRIS NICHOLS
EXPLAINS $2.3 MILLION SHORTFALL
BEGINNING WITH 2019 BUDGET
He made an interesting observation in the conversation: (paraphrasing) The state of Ohio made itself "whole" from the adverse financial effect of the MCO Ohio part of the sales tax by implement new fees and took the revenue out of the stream of Ohio finances which could find its way to local government.
Governor Kasich vetoed a provision in HB 49 (Ohio's biennium budget bill) which provided for Ohio asking the federal government for a waiver to assess a franchise fee on health insurance companies. (See this confirming LINK)
Now whom do think is ultimately going to pay for the increase in costs to offset the additional cost to insurance costs?
Of course, you and I, the taxpayers of Ohio in the form of incremental increases in our health care insurance premiums.
The SCPR says "Go, figure!"
Thank you! (sarcasm) Senator Oelslager and Representative Schuring. Ya'all are sure lookin' out for local government. Especially Stark County local government!
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On Friday, December 8, 2017 Stark County Budget Direct Chris Nichols (pictured above, also a Canton Township trustee) presented a "draft" 2018 Stark County departments/offices of government operating budget.
It is interesting to note that quite a number of elected Stark County officials did not attend the session. In 2011-2012 it was quite a different picture. These were the core years financial crisis due to the expiration of the only county sales tax.
Present were:
- Auditor Alan Harold,
- County Clerk of Courts Louis Giavasis,
- Commissioner Janet Creighton,
- Commissioner Richard Regula,
- Commissioner Bill Smith,
- Treasurer Alex Zumbar
The Stark County Political Report (SCPR) was there with camera in hand and over the next week or so will be presenting a series of blogs digging into the budget in some detail.
Commissioners are set to approve the Friday-presented "draft" budget on Wednesday, December 13, 2017 at their regular weekly meeting which begins at 1:30 p.m. The meeting is held on the second floor of the Stark County Office Building, 110 Central Plaza located in downtown Canton in the commissioners' meeting room.
The federal government and the state of Ohio dealt many Ohio county governments (including Stark County) a huge financial blow in ending (the federal government) and not making county government, in the case of Stark, whole going forward (Ohio government) for the loss of sales tax revenues on account of a federal rule effective July, 2017 of not allowing state government taxation of Medicaid "managed care organizations" (MCOs). (See this LINK for an full written explanation)
- Note: That Stark was one of the counties that was not made whole (getting about 66% of one year transition money [per Nichols in the video above, Vinton county got eight years of transition money])is indication to the SCPR that Republican members of the Stark County delegation to the Ohio General Assembly (OGA) were not effective in protecting (Republicans being in supermajority control of the OGA) Stark County taxpayers from the sudden and substantial cut of $2.3 million annually beginning in 2019.
- State Senator Scott Oelslager (29th Senate District),
- Kirk Schuring (48th House District), and
- Christina Hagan (50th House District
And, of course, Republican governor John Kasich ought not be left out.
The "term-limits" idea, by-the-way, was a Republican initiated plan to help regain control of the OGA after Democrats had been in control for many years during of the Vern Riffe era (1967-1994).
How hypocritical can Oelslager and Schuring be as evidenced in their skirting an electoral reform they initially supported?
While the SCPR is not a fan of Jackson trustee James N. Walters, who, despite his touting his being a Christian minister, The Report sees as being an arrogant guy who would be every bit as inaccessible as Oeslager has been (especially in the last several years) as a member of the Ohio General Assembly.
Maybe there is not enough difference on the "inaccessible" factor to justify Oelslager's continuance in office.
But good thing would be that a Oelslager loss would reverberate in the halls of the OGA and within the Stark County delegation to the OGA and perhaps the inequity of the application of things "one-time-transition" money would not happen going forward.
Look for local Republican leaders to "convince" Walters to withdraw from the race in order to pave the way for Oelslager's continuance in office.
And certainly do not look to the Democrats under the weak leadership of Chairman Phil Giavasis to find viable candidates to challenge either Oelslager or Schuring.
Shame on Oelslager and Schuring for allowing Stark County finances get slammed by the governor and the Ohio General Assembly.
Overall, considering the massive loss of local government funding and now this $2.3 million blow to Stark County finances, Oelslager and Schuring, have been relatively unproductive as senior legislators in protecting Stark County political subdivision (cities, villages and townships) government.
The total loss to Ohio on the MCO sales tax exemption matter is at $597 million and there is some $200 million lost to Ohio political subdivisions (local examples include Stark County government and the Stark Area Transit Authority (SARTA).
Stark County will get $1,471,853 of an projected annual loss of $2.3 million to be applied to the county revenue factor resulting in a 2018 total loss of $828,147 or about 34% of the usually expected Justice System Sales Tax (JSST) annual revenue of (as pointed out above ) of $2.3 million.
Listen to Nichols explain the revenue loss (3:12):
As can be seen in the lead graphic for this blog, the Stark County auditor's office is projected to receive (including its Information Technology operation) a huge (percentage-wise) increase (20.3%) over its 2017 "operations" budget.
But, perhaps, Stark County taxpayers should be grateful to Director Nichols (acting for the commissioners) in his exercising oversight/due diligence on the auditor/IT request for it could have been an even larger increase over 2017, to wit:
Perhaps as much as 22.6%!
Harold's response will be shared in future blogs in this series.
Not included in these budget numbers is a large capital improvement of the auditor's office complex on the second floor of the Stark County Office Building.
Another noteworthy increase that needs further examination is the $510,107 in the Sheriff office projected appropriation. Moreover, the SCPR thinks that there is some "hidden" money (not in the intentional sense, but by reason of how the budget is structured) that should at least in part be attributed to the sheriff's office, to wit:
The SCPR in ensuing volumes of this series will deal with justifications for the auditor's office increase by far and away largest increase in Stark County taxpayer money 2018 budget appropriation as well as other notable factors (i.e. the sheriff's office factor) in the county commissioners getting to a "targeted" 2018 operational outlay of $68,210,208:
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