The Managed Care Organization (MCO) tax is starting to affect Scioto County.
Through the month of August, the County’s permissive sales tax was down $151,754.13 compared to a year ago. At this time last year, the County had $1,074,439.92. However, this past August, the County was looking at $922,685.79 in revenue.
“We’re already filling the impact of the MCO tax,” Scioto County Commissioner Mike Crabtree said. “It’s going to get worse. And probably by the end of the year, we’ll be in the negative from last year.”
According to Crabtree, the County has realized approximately a $200,000 increased in sales since the beginning of the year, down from over $300,000 earlier in the year. However, that figure is expected to continue to decrease.
“We still have half of the year to go and my thoughts are we’ll be down closer to half a million or more at the end of the year,” Crabtree said. “That’s a guess on my part.”
The Commissioners have been waiting on a temporary solution from the state. However, with the MCO beginning to cause fiscal problems for the County, temporary aid still hasn’t come to fruition.
“I don’t think there is anything concrete,” Crabtree said. “To be honest with you, I don’t think they know what to do at the state. It’s a big problem. The problem they are dealing with right now is the governor himself, he’s not in favor of fixing it at all. And that’s not going to be an option for some of the counties.”
Crabtree believes the state will eventually offer some sort of solution to ease the pain of the MCO tax, but the question remains of when?
“I think that will happen, but I don’t know that it will be before the end of this year,” Crabtree said. “I think it might be sometime next year. It could be sometime before the end of this year, but nobody seems to be in much of a hurry to do anything. We’re going to make it through the end of the year OK.”
Crabtree admitted that Scioto County should be OK through next year as well. However, if the state doesn’t find relief for the County and surrounding counties, a fiscal emergency is a likely outcome.
“In three years, we could be right back where we were a few years back,” Crabtree said. “We’re going to have to start tightening our belts and figure out how we’re going to get through this. A lot of people don’t take this thing seriously, but it is serious.”
According to the Chairman of the Scioto County Commissioners Bryan Davis, at the beginning of 2017, the commissioners cut the budget by more than $400,000 in anticipation of MCO tax losses.
The Commissioners approved the resignation of Southern Ohio Port Authority (SOPA) board member Andy Glockner, effective immediately. Glockner became the seventh board member to resign. Glockner didn’t state a reason on his resignation letter.
Reach Chris Slone at 740-353-3101, ext 1927, or on Twitter @crslone.