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The county's deficit for the next fiscal year stands at $251 million, and with the state facing its own $1 billion gap for the same time period, aid from Annapolis could be limited in balancing the budget.

County Council members received the update from the county's finance officers on Tuesday, as well as an update on the state's fiscal outlook from Warren G. Deschenaux, the chief budget analyst for the General Assembly in Annapolis.

In the county, budget leaders have kept the deficit at a consistent rate 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 fiscal 2010 is estimated at 5.7 percent. By assuming this lower rate, the gap remains at $251 million, if the property tax collections are kept at the charter limit.

The county and the school system have retained a hiring freeze on some positions to save money.

"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.

At the state level, Gov. Martin O'Malley (D) is expected in October to present a plan to cut $246 million from the budget to close a gap in the current budget resulting from lower than expected income, sales and tobacco tax revenues. Assuming the gap is closed, Deschenaux said, the $1 billion gap in 2010 persists.

Like other jurisdictions nationwide, the state and county are facing lower than expected tax revenues because of the sagging economy, slowing employment rates and sluggish housing market. At the state's disposal is $700 million in rainy day funds, not included in the estimates, but which Deschenaux does not recommend using for this type of long-term financial problem.

Also of concern is the roughly $700 million — which will increase to $800 million next year — spent by the state to pay for teacher pensions.

"This is a very expensive program and the contribution rate will be rising for the next 50 years," Deschenaux said. To reduce the state costs to the program counties could be asked to help pay more of the costs, or the benefit for teachers could be adjusted.

According to data collected by the Maryland Association of Counties, the pensions cost the county $217.1 million, or 15 cents on the property tax rate. The county receives $135 million from the state for its teacher pensions, including $10 million for Montgomery College teachers.

Also in attendance Tuesday were school board members Nancy Navarro (Dist. 5) of Silver Spring, Shirley Brandman (At large) of Bethesda and Patricia B. O'Neill (Dist. 3) of Bethesda.

Food stamp challenge

Council President Michael J. Knapp is the latest elected official to participate in a food stamp challenge, by limiting his grocery purchases to a comparable amount to that given to food stamp recipients.

For Knapp, the challenge meant buying a week's worth of meals with $25. His list, including oatmeal, eggs, bananas and bean soup netted a remainder of $1.

For his first full day of meals, Knapp (D-Dist. 2) of Germantown consumed an egg and toast for breakfast, no lunch, and spaghetti, salad, bread and milk for dinner.

The challenge provides an opportunity to increase awareness of the need for residents to contribute to area food banks, as well as awareness of the plight of some of the county's poorest residents, Knapp said.

The food stamp challenge has been undertaken by several members of Congress last year, including U.S. Rep. Christopher Van Hollen Jr. (D-Dist. 8) of Kensington.

Coming next

ï The County Council hosts a town hall meeting for Burtonsville residents at Briggs Chaney Middle School at 1901 Rainbow Drive in Silver Spring at 8 tonight. For more information, call 240-777-7931.

ïCounty officials host the eighth annual Housing and Financial Fitness Day including foreclosure remedies and other housing issues on Sept. 27 at the Bethesda Chevy Chase Regional Center at 4805 Edgemoor Lane in Bethesda from 10 a.m. to 3 p.m. For more information call 240-777-3602.