Monday, June 28, 2010 at 8:48 AM
June sales tax revenues are up in at least five northeast Ohio counties - a further indication that the region is beginning to recover. But officials don't foresee loosening the purse strings anytime soon. ideastream intern Nick castele reports.
The Ohio Department of Taxation says Ashtabula, Cuyahoga, Geauga, Lake and Lorain counties received more sales tax revenue this month than in June 2009.
Lake County Commissioner Daniel Troy isn’t ready to call it a trend yet. His County’s increase was three-point-six percent, which Troy says will help to patch holes in the budget. But he warns counties in Northeast Ohio to prepare for a long-term lull in tax revenues.
TROY: “We’ve really got to try and change the service model. We’ve got to-we’ve got to kind of restructure the way we do things to fit the realities of the revenues we’re going to be experiencing over the next few years. We just can’t do business as usual because the resources won’t be there to support it.”
In Cuyahoga County, sales tax revenues increased ten percent. But factoring out a tax hike in Lorain County, total June distributions for the five counties are still around four percent lower than they were in June 2008. And, according to a recent study Reuters and the University of Michigan, national consumer confidence hasn’t notably improved in the past few months.
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