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Montgomery County Executive Isiah Leggett warned of hard times ahead but said the struggle will make the county stronger at the first of five budget forums scheduled around the county this month.

The county is facing a projected $449 million deficit for fiscal 2010, which begins in July. And the situation could become more dire if the state cuts aid further, such as a proposal to transfer teacher pensions to the county, Leggett said.

"I'm reasonably optimistic that we can get through this, but it's a huge problem," Leggett (D) said at the Monday night forum in Germantown. "You will see and possibly feel some of this pain, but we have to go through this without raising taxes."

A standing room-only crowd of more than 100 people pressed Leggett to preserve funding for various services, such as public safety, schools, parks and libraries. Multiple attendees spoke in favor of county police's community services officers, who work closely with residents, and said that strong law enforcement is critical in times of economic trouble.

"I want to feel safe in my neighborhood, I want to feel safe going to the libraries, I want to feel safe going anywhere," Carla Keats of Montgomery Village said at the forum. "Please don't cut the police budget."

Many of the residents who spoke at the forum said they understood service cuts were inevitable and suggested areas that should maintain the most funding.

Libraries also become more important during hard financial times, several people said, because they provide education and entertainment and a free place to gather.

"We ask that budget cuts be proportional," said Pam Hosimer, chairwoman of the Damascus Library Advisory Committee. "We feel like we're going to have to cut off parts of the deck because we don't have anything else to throw overboard."

Leggett also defended the timing of his proposed Smart Growth Initiative, which would relocate a dozen county agencies to four properties in and around Gaithersburg and open up land around the Shady Grove Metro station to development. Purchasing and selling various properties and constructing facilities would cost $485 million over five years and bring in $515 million in income and savings, county officials have said.

"This is a plan that ultimately saves money for the county and reduces money spent by the county," Leggett said. "…I don't want us to diminish our opportunity to increase taxes by generating additional revenue by developing the area around the Shady Grove Metro. …It's not designed for this year, it's designed for the long term."

Leggett added that it is important to make investments during "tough times" and said he plans to urge the County Council to put more money into the Housing Initiative Fund so the county can buy properties while values are down.

The county executive will transmit his budget to the County Council on March 16, and public hearings will take place in early April. The council will approve the budget by June.