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County projects additional shortfall
Fairfax County officials are projecting an additional $25 million shortfall in an already challenging budget year.
County Executive Anthony Griffin told the Fairfax County Board of Supervisors Friday that the county is continuing to lose out on projected interest on its investments because the Federal Reserve is continuing to lower interest rates. This alone is expected to cost the county $4.4 million in the current fiscal year and $10.1 million in fiscal 2009.
In addition, Griffin said county staff are lowering expected revenue from sales taxes over the current and upcoming fiscal years by about $5 million and are also anticipating a decline in receipts in deed of conveyance and recordation taxes, both of which are related to home sales.
At the same time, gas prices have spiked over the past month. The price of diesel, which most county vehicles use, has gone up 33 percent since Feb. 1, Griffin said, and unleaded fuel costs are up 18 percent.
“Frankly, I don't have an answer for you today in how we're resolving it,” Griffin said of the shortfall.
County staff trimmed about $120 million from the fiscal 2009 budget before the first draft was printed, and have already had to contend with $32 million in cuts since then due to lower interest rates.
But the worst is yet to come, Griffin warned.
“If people think this year as far as revenue is bad, double that for fiscal year 2010,” he said. “This year is not a cakewalk, but by comparison it's a lot easier.”
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