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Commissioner asks whether county advances to school districts comply with law after Treasurer lists millions in advances
Summary
Commissioner Old pressed county staff to clarify advance-payment practices after Treasurer Caleb Stidham provided figures showing multimillion-dollar advances to several school districts in March; Old asked whether state law permits such advances and whether lost interest should be addressed.
Commissioner Old asked staff to investigate the county’s practice of advancing tax revenues to schools and other local entities and why accounts with zero balances continue to appear on monthly financial reports.
County Treasurer Caleb Stidham provided figures found for March indicating multiple school districts received advances: Edison $5,000,000; Huron $5,000,000; Kelleys Island $500,000; Margaretta $3,000,000; Perkins $8,000,000; Vermilion $4,200,000; Sandusky $2,500,000; Perkins Township $3,000,000; EHOVE was listed as "not specified." Stidham estimated that holding $30 million for 30 days at a 4.7% interest rate could earn about $112,000 in interest, an illustration Commissioner Old used to question potential lost revenue from advances.
Old asked whether state law permits the Auditor to make such advances and suggested investigating whether any lost interest should be deducted from the Auditor's budget. Treasurer Stidham was asked to clarify what current state law permits regarding tax-revenue advancements; the board did not adopt any immediate policy changes but requested legal/administrative clarification.
