MiddletownJournal.com

HAMILTON — A 4 percent decrease this year in retail sales across Butler County could affect the county's budget, which figures sales tax into 32 percent of its general fund.

Butler County commissioners told business leaders attending the county Chamber Caucus in Hamilton on Friday, May 9, that although new retail stores like IKEA are expected to bring millions of dollars in sales tax to the county coffers, residents have not been buying as much as anticipated this year.

Commissioner Greg Jolivette said the county anticipates 3 percent growth in sales tax every year when it figures its budget. So far, it hasn't been produced, with March and April figures showing the area is 4 percent behind from where it should be at this point in 2008.

Jolivette said the county is hoping for a pick up in sales this month.

"May figures will let us know how the year ahead will play out," he said.

However, Commissioner Don Dixon said due to current economic trends, he does not expect sales to increase and the county should adjust accordingly.

"We have to get our own fiscal house in order and we can't depend on sales tax to carry our budget," he said.

Dixon said he foresees sales dropping dramatically, much like the current housing market, and it would be prudent for the county to find other ways to supplement its budget than through sales tax.

"We need to reduce the size of county government to create enough reserve to carry us through some difficult times."

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