Fairfax Losing Its Budget Balance - Again;After Struggle to Close This Year's Gap, County Sees Possible $97 Million Shortfall Next Year
Fairfax County, still reeling from the recession and the collapsed real estate market, is facing a potential $97 million budget shortfall next year, according to county officials, virtually ensuring further cuts in services, restrained school funding and possible tax increases.</br></br>In response, the Board of Supervisors is scheduled to consider budget guidelines Monday that would limit the growth of most county government spending next year to 5.65 percent and limit the increase in county spending on schools to 6 percent. Those limits, however, would not erase the shortfall.</br></br>The main reason for the shortfall, county officials said, is an expected continued decline in real estate taxes, which financed 60 percent of the county's $1.38 billion budget this year.</br></br>James P. McDonald, deputy county executive for finances, said residential real estate values may face a 2 percent to 2.5 percent drop and commercial real estate values are expected to decrease by 5 percent. He cautioned, however, that the figures were preliminary and could change significantly if sales pick up in the next few months.</br></br>"I'm convinced in my own mind there needs to be some modest tax rate increase, because the county can't provide the level of services that citizens demand," said Ed Hoole, chairman of the Citizen Budget Overview Committee. He cited, as an example, the board's recent decision to resume free emergency ambulance service because of residents' complaints about being charged $100 a ride.