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County officials to lobby the state

WARREN — Commissioners from Trumbull and Mahoning counties intend to go to Columbus this week to lobby state lawmakers for financial help to offset local losses caused by a change in the way Medicaid Managed Care Organizations are taxed.

The 2014 decision from the Federal Centers for Medicare and Medicaid Services that taxing MCOs through a statewide sales tax could be defined as a health care-related tax and not permissible under the Affordable Care Act is expected to cost Trumbull County $800,000 in general fund revenue after July 1.

And beginning in 2018, the move “would mean a loss of $2.7 million or 10.6 percent of sales tax revenues,” according to Trumbull County Commissioner Frank Fuda.

In Mahoning County, the loss of revenue is about $1 million this year and $4 million a year moving forward, said Audrey Tillis, executive director of the Mahoning County Commissioners’ Office.

Trumbull commissioners last week passed a resolution urging state and federal legislators to take immediate action to offset the loss to the county. To back up their words, Commissioner Mauro Cantalamessa plans to join the effort organized by Mahoning County commissioners, who are going to Columbus on Tuesday to talk to the finance committee chairs in the Ohio House and Senate, as well as protest against any more cuts to the local government fund.

“This effort grew out of my meetings on the board of the County Commissioners Association of Ohio, of which I am on the taxation and finance committee,” said Mahoning County Commissioner Carol Rimedio-Righetti.

Righetti said officials from all 88 counties have been invited to join the lobbying effort that will go to the offices of House finance chairman, state Rep. Ryan Smith, R-Bidwell, and Senate finance chairman, state Sen. Scott Oelslager, R-Canton.

Righetti credited state Rep. John Boccieri, D-Poland, with helping her set up the meetings.

“Our local governments are the backbone of our communities, yet the state legislature has pushed down to the lower layers of government the burden of raising revenue,” Boccieri said. “I’m pleased that both chairmen agreed to hear directly from our local officials and hope we can find a workable solution. This cut will cause devastating impacts across county governments; I’m hoping this meeting next week will help leadership recognize the need for an alternative fix to this tax formula.”

Rimedio-Righetti said so far the state has offered what she called a “Band-Aid solution” — a lump sum payment of sales tax loss from MCOs experienced by counties in the last quarter of 2017 and all of 2018.

In Trumbull County, that’s about $3.9 million. In Mahoning County, the payment is about $5.2 million.

State Rep. Glenn Holmes, D-McDonald, said the Democratic caucus is pushing for relief for counties.

“We are also still trying to get money reinstituted into the local government fund,” Holmes said. “Whatever your political persuasion, the people are suffering because of a recessed economy in Ohio.”

In Trumbull County, Fuda has proposed raising the sales tax 0.25 percent, but first, commissioners have appointed a citizen budget review committee to help them with decisions about increasing county revenue. The first meeting of that 11-member panel is also scheduled for Tuesday.

gvogrin@tribtoday.com

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