Tax cuts leave Trumbull County facing big shortfall

Come July, state and local sales taxes on Medicaid health benefits provided by managed care organizations will be eliminated

As the Trumbull County Commissioners wrapped up their last meeting of the year, they're looking ahead to 2017.


WARREN, Ohio (WKBN) – Commissioners in Trumbull County are bracing for a nearly $3 million loss in revenue for 2018.

Come July, state and local sales taxes on Medicaid health benefits provided by managed care organizations will be eliminated, accounting for an $800,000 loss this year and $2.7 million in 2018.

“If everything goes as planned right now it would be devastating for Trumbull County, said Trumbull County Commissioner Frank Fuda.

County Auditor Adrian Biviano said sales tax dollars represent 50 percent of the general fund budget. The cut accounts for 12 percent of what the county brings in.

The state does have a reimbursement plan but that gives little relief for Fuda. He said it is a one-time payment.

“If they give us $3 million next year and they cut $2.7 million every year after that, we will survive next year but what are we going to do the years after that?”

County officials are also expecting the state to make cuts to local government to make up what they are losing from the same tax dollars. Something Biviano said will only add to budget reductions.

“We go from a $44.5 million budget down to roughly a $41 million budget or less,” Biviano said.

The situation leaves commissioners with two options — raise revenue or cut spending.

“One of those two things have to happen,” Fuda said.

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