MANSFIELD — Richland County commissioners on Tuesday approved creation of an account that could receive an estimated $2 million dollars in federal COVID-19 relief.
The problem will be in finding ways to spend it.
The money from the CARES Act approved by Congress will flow into local coffers after the Ohio House approves a disbursement plan already passed by the Senate and Gov. Mike DeWine signs it into law.
But there are too many strings attached, according to county Auditor Pat Dropsey. The money can only be used for COVID-19 expenses, not to cover any revenue shortfalls due to the pandemic.
The county relies heavily on sales tax for its general fund, which has been reduced since DeWine shuttered the state in March through at least the end of June. Officials said in late May they are anticipating a decline of about $800,000 in projected revenue over the next three months.
“Based on current rules, and this is just me from an accountant’s point of view, the restrictions are egregious. The rules the federal government has set down on local governments are ridiculous,” Dropsey said during the commissioners’ meeting.
“To me, all of the county’s employees were deemed essential (during a state-ordered shutdown that began in March),” Dropsey said. “I have an argument that makes (payroll) a valid COVID-19 expense. But I don’t know that yet.”
The auditor said under the current guidelines he didn’t believe the county could spend the entire $2 million, which must be utilized by Dec. 30.
Commissioner Marilyn John said she spoke with Richland County’s two congressmen, Troy Balderson and Bob Gibbs, on Monday when they both attended the Republican Party monthly luncheon.
“I felt they kind of recognized it’s a problem, but they didn’t come anywhere near saying (it can be changed),” John said. “What I am hearing is the Ohio House will not disburse the entire amount right now. They will do about a third in the hopes the federal government will release some of the restrictions on the money.
“We are making our concerns known. The response I was given is the reason (Congress) didn’t allow more flexibility is they didn’t wan’t governmental entities that went into the epidemic (already) in financial crisis to use this money as a way out.
“I can understand that. But for local entities living within their means, making the tough budget decisions such as Richland County has done … I just don’t think its fair to treat all local governments the same,” John said.
The lag-time between collection of the sales tax and disbursement to an individual county is about three months, commissioners said.
Richland County began 2020 with a $4.8 million budget carryover and also has a $1.3 million rainy day fund.
