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Early funding forecast puts county in $156.8 million hole
Just two months into the new fiscal 2010 year, county staff is projecting a $156.8 million shortfall.
Loudoun supervisor Jim Burton (I-Blue Ridge) called the forecast, “very sobering news. But I think it's the kind of information we need to have as soon as possible.”
Home assessments, which comprise the bulk of county revenues, are expected to drop another 5 percent from last year, county staff from the budget office said.
Supervisors serving on the county's Finance and Government Services Committee met Sept. 2 for a presentation by county staff on the state of the budget. Numbers presented to supervisors were preliminary guesses, staff said, as to what sort of budget cuts might be needed.
In past years, the county board has spent the winter months forming a budget, approving it in April.
Staff said that to fully fund county government and school spending, the residential tax rate on homes would need to be raised to $1.45 or $1.46 per $100 of assessed value. At this rate, staff said, county homeowners would see an 11 to 16 percent jump in residential property taxes.
Last spring, supervisors approved a $1.4 billion budget with a real property tax rate of $1.245 per $100 assessed value.
“I'm still a little bit optimistic that things are going to turn around soon,” said Burton, who chairs the county finance committee. “It's my philosophy, we should prepare for the worst case.”
Staff said another determining factor in the county's budget shortfall is commercial property assessments. How those values could decline and for how long they are devalued are questions staff say need to be answered.
The finance committee, which was to begin some preliminary budget talks Sept. 2, decided to delay this discussion because of the bleak forecast.
“The picture they presented today was worse than I thought it was,” said Burton, adding that he felt it would be “premature” to discuss the budget process guidelines at this point.
Also attending the meeting were Supervisors Stevens Miller (D-Dulles), Lori Waters (R-Broad Run), Sally Kurtz (D-Catoctin), Eugene Delgaudio (R-Sterling), Susan Buckley (D-Sugarland Run), and board Chairman Scott York (I-at large).
The finance committee will review the county's capital improvements project budget at its next meeting later this month.
Contact the reporter at hhobbs@timespapers.com
Hey, I got an idea. How about reducing spending?????
Posted by drpeej
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