Allen County budget might take a hit because of a new federal mandate.
A new mandate that will remove the sales tax on certain medicaid managed services could set Allen County back by nearly $900,000. Sales tax revenue makes up 61% of the general fund and the medicaid sales tax makes up a small portion of that revenue. Allen County Auditor, Rhonda Eddy-Stienecker says she and the Allen County Commissioners are monitoring the situation and looking at what the state legislator can do to fix the situation.
The good news is that overall sale tax revenue is up and the county collections are looking positive for 2016. Counties will not see changes in sales tax numbers for medicaid until the end of 2017 and if not corrected by state lawmakers, the full effect of the cut will be felt in 2018.
