County could lose $2.1 million


By Frank Lewis - flewis@civitasmedia.com



Scioto County would stand to lose $2.1 million or 17 percent of its sales tax revenues associated with the Medicaid MCO (Managed Care Organizations) sales tax by adopting an equitable solution that addresses the funding needs of the state and counties on a continuing basis.

The first shot fired across the bow was an announcement last year from the federal government that Ohio can no longer charge a sales tax on managed (medicaid) care services.

The second shot was fired when, in his new budget, Ohio Governor John Kasich issued a proposal to attempt to replace that lost revenue. He proposed a single payment in 2018. However, the distribution of that payment is determined by giving the most to the counties that rely more heavily on the Medicaid sales tax based on the larger number of Medicaid recipients.

Scioto County will do what other counties have done and issue a resolution urging state legislators to take immediate action as part of the biennial budget process to protect counties and transit authorities against the loss of Medicaid Managed Care organization sales tax revenue.

The resolution says 2018-2019 Executive State Budget proposes disparate treatment for the state and counties by recommending to fully replace the forgone state sales tax and Medicaid matching dollars for the next biennium while providing counties/transit authorities with a one-time allocation that ranges from approximately three months to a year or more of the forgone revenue. It calls for an equitable solution instead.

“It is an effort by the County Commissioners Association and we have been trying to work through the state legislature to get some kind of a long-term solution for the current situation we’re in with the possible loss of the HMO (MCO) revenue, which would be something to the tune in excess of $2 million for Scioto County,” Scioto County Commissioner Mike Crabtree said. “I know from some of the discussions we’ve had with the staff from the governor’s office, there doesn’t seem to be a long-term solution even proposed.”

The resolution urges the Ohio General Assembly to take immediate action against the potential loss of approximately 17 percent of the county’s sales tax revenues associated with the Medicaid MCO sales tax by adopting an equitable solution that addresses the funding needs of the state and counties on a continuing basis.

“Regionally we’ve been going to different meetings and there’s been I think at least 27 counties so far that have adopted this resolution encouraging the state legislature to come up with a long-term solution for the loss of that revenue,” Crabtree said. “This (resolution) is our effort here to get our two-cents worth in.”

By Frank Lewis

flewis@civitasmedia.com

Reach Frank Lewis at 740-353-3101, ext. 1928, or on Twitter @franklewis.

Reach Frank Lewis at 740-353-3101, ext. 1928, or on Twitter @franklewis.