County budget gap stands at $251 million for FY2010
Lower budget growth rate helps keep number low
A group of Montgomery County budget officials notified a County Council committee on Monday that the county's budget gap for the next fiscal year is $251 million.
The figure is in line with previous estimates given by County Executive Isiah Leggett (D) in discussion about the county's grim fiscal outlook.
Budget leaders have kept the gap at a consistent figure by estimating a lower than average budget growth rate. Over the past 10 years, the county's budget has grown an average of 8 percent each year.
For fiscal 2009, which began July 1, the budget includes a much lower 3.9 percent growth rate. With increased fuel costs and other supplemental appropriations, the growth rate for FY2010 is estimated at 5.7 percent. By assuming this lower rate, the gap remains at $251 million.
"What this shows is that even under a constrained rate of growth, the county still faces difficult circumstances," said Joseph F. Beach, the county's budget director following the meeting.
Like other jurisdictions, the county is experiencing a downturn in revenues resulting from the sagging economy. Although the county's employment remains high, the county has been most affected by the declining housing market, which has dampened transfer and recordation tax collections.
The full council will receive the same financial update on Tuesday, as well as a report from Warren G. Deschenaux, the chief budget analyst for the General Assembly in Annapolis.