Agenda 12-06-21; 6-b - Approval of an Allocation Framework for the FY2020-21 Financial Results

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6 to individuals and families helped to enhance retail sales. Those direct stimulus payments were distributed in April of 2020, December of 2020, and March of 2021. Due to the three month lag in sales tax reporting from the Department of Revenue, the impact of the December 2020 stimulus was not known until April of 2021, and the impact from the March stimulus payments were not known until June 2021. The following chart illustrates how those stimulus payments amplified the seasonal variations in sales tax collections compared to FY2019 and FY2020. Sales Tax Collections by Month $3,000,000.00 3rd Stimulus-March 2021 2nd Stimulus-December 2020 $2,500,000.00 $2,000,000.00 $1,500,000.00 1st Stimulus-April 2020 $1,000,000.00 $500,000.00 $ Large Refund & et et et t to n ,�o`P tc0 �C'0 p� Q�e ece >a� �eo \� $(500,000.00) 5e 2019 2020 2021 Medicaid Hold Harmless In April of 2020, the Office of the State Treasurer warned counties that, "Based on our expectations, we urge counties to be very conservative about budgeting how much revenue they budget for the MHH [Medicaid Hold Harmless] payments in their 2021 budgets." Hold harmless payment are made from the state to counties because counties exchanged a portion of their local sales and use tax revenue for the state's agreement to assume responsibility for certain non-administrative Medicaid costs several years ago. The FY2020-21 Budget estimated the County would receive a Medicaid Hold Harmless payment of$1.75 million. Since sales tax revenues Statewide did not suffer the expected losses,the County's Medicaid Hold Harmless payment exceeded the budgeted amount by over$2 million. The audit will reflect this payment in the sales tax category. Since this revenue is not in the County's control and, therefore, not as predictable, it should be considered non-recurring revenue available for one time expenditure. 2