The monthly revenue reports showed collections for all general fund revenues were down 1.5% in August, 2.2% in October and 1.8% last month. Expenses droppedmore dramatically after the commissioners asked everyone that relies on the general fund to cut costs 4.14% from their 2020 budgets and an additional 3.3% next year. Expenses were down 3.5%, 7.6% and 10% respectively for August, September and October.
Credit: Submitted
Credit: Submitted
Butler County isn’t alone in experiencing better than anticipated revenue collections. The non-auto sales tax collections in the state were 10% higher than estimated. How
ever, personal income taxes — which the county does not receive — dropped 2.3% in October.
“While both sales tax categories were above estimate this month, personal income tax collections missed estimates for the second consecutive month. The economic boost from federal stimulus that was apparent over the summer is waning," Kimberly Murnieks, director of the state office of budget and management said. “Skyrocketing COVID cases and hospitalizations are deeply concerning as we enter the winter holiday season; the upcoming weeks and months are critical to containing the virus and restoring Ohio’s economy for the remainder of this fiscal year and the upcoming budget biennium.”
While sales tax is the county’s largest revenue source, at $40.6 million, including the recent distribution collected so far, it is not the only one. The sheriff’s office brings in around $8.5 million a year boarding prisoners for the federal government and sometimes other jurisdictions short on jail space. Through October, the sheriff’s office collected $8.7 million which is off by 7.1% in year-to-date collections. Last year, the total was almost $10.6 million.
Even with social distancing efforts ongoing at the three jail facilities, Chief Deputy Anthony Dwyer said their federal prisoner population hasn’t dropped. Despite what some believe, he said with President-elect Joe Biden expected to take office in January, the numbers won’t shift.
“There’s always a question but what we’ve experienced is it doesn’t matter which president is there; it’s been pretty consistent," Dwyer said.
Property taxes are the second-largest revenue generator at $14.2 million collected for the year, compared to $14.4 million last year. Early predictions were a 10% reduction incollections but Butler County Treasurer Nancy Nix said the second-half property tax collections generated 96.2% of the amount billed compared to 96.1% for the second half last year.
Escrowed taxes and some mortgage companies making up shortfalls kept that revenue stream steady this year. Plus, the federal government issued stimulus checks and other financial help to people. Nix said it is hard to predict what next year will bring.
“Everything is pretty status quo here right now,” Nix said. “We’re very dependent on what’s going on on a macro level.”
The largest percentage drop in revenues has been 33.3% in casino fees. When Gov. Mike DeWine shut down the economy trying to stem the surge in coronavirus cases, the gambling emporiums were some of the last allowed to reopen for business. The county collected $4.6 million from casinos in 2019 and only $2.3 million so far this year. The funds are distributed to counties quarterly so the full impact won’t be known until year’s end.
Property conveyance fees are another economic indicator to watch and the $3.7 million collected as of the end of October was up 5.8% compared to last year. County Auditor Roger Reynolds — who is fighting the state over a 20% property value hike for next year — said it shows property prices were higher since the sales volume has been steady.
Like Nix, he believes federal government actions have made the difference in this year’s finances.
“I believe the real estate market is going to soften overall,” Reynolds said. “As the large amount of money from the federal government burns off. They put trillions of dollars into the market this year. They’re not going to do that next year."
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