MANSFIELD — Richland County commissioners, facing a local economy that has seen COVID-19 cut deeply into its major source of revenue, cautioned elected officials on Tuesday to “buckle down” in terms of spending.
“We have not yet come out and used the words hiring freeze or salary freeze, but I would suggest things have definitely cooled down when it comes to expenditures,” Commissioner Marilyn John said during a meeting with elected officials to discuss county finances during the pandemic.
More than 60 percent of the county’s general fund revenue comes through the local permissive sales tax, a source directly impacted by a state-ordered shutdown of non-essential businesses in March.
The state has slowly re-opened, though safety guidelines put in place by Gov. DeWine, along with a reluctance by some to avoid public contact during the pandemic, have likely continued to hamper business efforts.
Andy McGinty from the county auditor’s office said Tuesday that sales tax funds received in June (covering March sales) were down 18 percent from 2019 and it appeared money in July (for April sales) were off by 17 percent.
“If we anticipate that same (trend) potentially for May, then we kind of have to buckle down,” John said.
McGinty said the county is estimating $27 million in revenue in 2020 from its primary funding sources on an overall budget of $34 million.
Richland County began 2020 with a $4.8 million budget carryover and also has a $1.3 million rainy day fund. Commissioners, who have not announced plans to tap into reserve funds, have in the past asked other elected officials to watch expenses, but have not enacted in specific budget cuts related to a loss in revenue.
Clerk of Courts Linda Frary asked for more detail on what “buckle down” means to commissioners.
“We recently passed the tax budget for 2021 and we noted some departments are looking at hiring new positions and 3 percent pay increases … that’s probably not going to happen,” John said.
“We have copies of the (current) payroll reports right now. That’s what we are looking at for budgets next year,” she said, also pointing out there is an additional pay period in 2021.
“I would suggest being prepared that … a lot of equipment you might have put on the schedule to purchase next year, that might not happen,” John said.
Commissioner Tony Vero said, “We feel we can be all right. We haven’t asked for layoffs or furloughs. Our expenses are down, which is a reflection of all the work you folks have done.”
The good news is the county was off to a good financial year, trending ahead of 2019 for the first five months of 2020 (reflecting sales tax receipts from October, November, December, January and February).
The fast start means the county is 1.75 percent ahead of 2019 in terms of sales tax ($9,992,795 vs. $9,818,143), for the first half of the year, though it’s about 4 percent behind the year’s projected revenue through June.
Also on Tuesday, commissioners discussed plans for the $2 million the county has received in federal CARES Act funds.
Vero said the federal Coronavirus, Aid, Relief, & Economic Security Act provided $150 billion to state and local governments. He said the State of Ohio received $4.5 million and has kept $2.5 billion for its own needs.
In order for the county to use the funds, the costs must be incurred between March 1 and Dec. 30, 2020. The expenditures must have been incurred as a result of the public health emergency and were not accounted for in the county’s approved 2020 budget.
At this point, commissioners are looking to reimburse county agencies and departments for direct COVID-19 related expenses; assist in providing mobile internet hotspots for individual families as local school districts plan for at least some degree of online instruction; and also for grants to small businesses in the county.
Vero, who said he is working with public and private schools in the county to provide the hotspots, said he should have an idea by the end of the week how many are needed, each at a cost of $20 per month for a year.
As of Tuesday, he said he has received requests for about 1,115 such devices, about $267,000. He anticipates additional requests this week and anticipates spending about $300,000 on the program,
John outlined a program in conjunction with Jodie Perry, president & CEO of the Richland Area Chamber & Economic Development, which would use CARES Act funds to provide up to $5,000 grants to businesses that meet eligibility requirements.
She said once the application forms are complete, businesses can apply online for the assistance, following a similar program to one enacted in Summit County with the Akron Chamber of Commerce.
“We don’t need to reinvent the wheel,” John said.
Applications will be ranked on a points system, she said, and funds will be awarded to businesses who qualify for the assistance that could be used for things such as payroll, utilities, rent or “any expenses as a result of the pandemic.”
Every jurisdiction in the county, including cities, villages and townships, can seek local CARES Act funds.
“I would encourage (elected officials) to spend some time and read the guidelines. There is money allotted out there for you,” Vero said.
In smaller areas, which may have difficulty finding ways to spend the money, commissioners stressed those governmental entities can participate in the two selected county programs and benefit schools or businesses in their areas.
“With these two programs, we have laid the groundwork (for participation),” John said.
John Leutz with the County Commissioners Association of Ohio attended the meeting and said the federal government may pass another relief act in early August.
“What you guys are doing with programs to help the schools and local businesses is a step in the right direction,” Leutz said, adding state lawmakers are watching what local governments do before releasing additional funds from the CARES Act approved in March.
Thus far, local governments in Ohio have received about $350 million with another $850 million still to be disbursed. Vero has said Richland Count could possibly receive another $4 million in CARES Act dollars.
“The (state) legislature wanted to get some money out there and see how it’s being used. They are very interested in what local governments are able to do,” Leutz said.
