HCPOA NEWS
Howard predicts $5 million revenue shortfall
Feb 12, 2009 (02:02:19)
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Howard County officials now are predicting a revenue deficit of $5 million for fiscal 2009, but they're confident several interventions will save the county up to $15 million.In the fall, Ray Wacks, the county's budget director, estimated only a $1.8 million shortfall, but warned it could get worse.
And it did.
The county is projecting it'll receive $849.5 million in revenue for its $854.5 million fiscal 2009 budget, according to the latest December estimates.
"I don't think anyone could have predicted this kind of drop-off, no matter who they are, and that the economy would continue to get worse before it got better," said Wacks at the council's monthly meeting this week.
Several sources of revenue, including from the recordation tax, which is imposed when a title changes hands, and corporate property tax, were noted for sharp shortfalls.
Recordation tax revenue, as of February, is $8.02 million, a 29 percent drop from the $11.31 million projected for this point.
And corporate property tax revenue, as of December, is $28.25 million, a 23 percent drop from the $36.77 million projected.
Still, Wacks assured council members that officials had taken the necessary steps to prepare for this situation even if it worsens.
Among the interventions are:
¥ Delaying initiatives such as road resurfacing, technology projects and the county Department of Recreation and Parks facility improvements including tennis court upgrades;
¥ Holding about 30 non-public safety positions vacant;
¥ Cutting discretionary spending, like furniture purchases.
Councilman Calvin Ball expressed concern with the outlook and asked if other interventions were planned.
"We've built in enough contingencies to help us get by," Wacks said. "We're looking at the interventions to get us close to a $15 million savings."
County Executive Ken Ulman informed residents of the dire economic circumstances in his state of the county address in January.
He instructed department heads to submit budgets with 5 percent cuts. The budget office now is reviewing the requests.
Ulman will hold a public hearing on the budget March 18.
Other counties in the Baltimore region have larger deficits, including Anne Arundel, which is facing a $152 million operating budget shortfall.
By Josh Kowalkowski
Examiner Staff Writer 2/11/09
jkowalkowski@baltimoreexaminer.com
