As the heat of July settles over Southern Ohio, the financial outlook for two neighboring counties could not look more different. While officials in Scioto County are bracing for “painful cuts” to essential services, their neighbors in Lawrence County have just received a legal green light to pursue a creative revenue-sharing plan designed to spark industrial growth.
Scioto County: “The Money Is Not There”
In Portsmouth, the mood at the Scioto County Courthouse is grim. Commissioners Scottie Powell and Merit Smith recently issued a blunt warning to all elected officeholders: the county is facing a massive $8 million budget gap.
While county offices submitted budget requests totaling nearly $30 million, the Budget Commission determined there is only $22 million available to allocate. Commissioner Powell noted that despite two years of warnings to freeze wages and “hold the line” on spending, many offices submitted requests even higher than in previous years.
“By default, we get to be the bad guys and go through and cut,” Powell said, warning that by November, some offices may find themselves without the funds to pay staff. A major driver of this crisis is the skyrocketing cost of Children Services, specifically for the placement of children with complex needs, which commissioners say is “bleeding” the county dry.
Lawrence County: A New Model for Cooperation
Just up the river in Lawrence County, a different story is unfolding. Ohio Attorney General Andy Wilson issued a formal opinion this week that could provide a blueprint for how municipalities and counties can work together to solve infrastructure hurdles.
The ruling stems from a proposed expansion of a private business in Ironton. To grow, the business needs to purchase the land currently occupied by the Lawrence County Engineer’s garage. However, relocating the garage is expected to cost the county $3 million more than what they would receive from the sale.
To bridge this gap, the City of Ironton proposed an “Intergovernmental Economic Development Cost-Sharing Agreement”. Under this plan, the city would share a portion of the new income tax revenue generated by the business expansion with the county to help pay for the new garage.
Attorney General Wilson ruled that this is legally permissible, stating that a municipality may contribute funds to a county if the expenditure serves a “public municipal purpose”—such as creating private-sector jobs and increasing the city’s tax base.
Two Paths Forward
The contrast between the two county seats is striking. In Portsmouth, the conversation is dominated by “business-as-usual” spending meeting a hard wall of fiscal reality. Commissioners there are warning that the county could slip into a “fiscal watch or fiscal emergency” if spending isn’t reined in immediately.
In Ironton, the focus is on a mutually beneficial partnership. Rather than the city and county operating in silos, the Attorney General’s ruling confirms that they can legally pool resources to ensure a major employer stays and expands in the region.
As Scioto County officeholders prepare for a “head-to-head” confrontation over remaining funds, Lawrence County leaders now have a clear legal path to use city tax dollars to solve a county-level infrastructure problem—provided the end result is more jobs for local residents.
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