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Montgomery County's budget continues to worsen with every update, and now officials are saying layoffs of county employees are possible in the current fiscal year.

On Tuesday, the County Council learned that they will need to close a $32 million budget shortfall in fiscal 2010, which ends June 30. The budget shortfall in fiscal 2011 has been estimated at $608 million — if the state makes no further cuts to local aid.

Joseph Beach, director of the county's Office of Management and Budget, said County Executive Isiah Leggett will need to make additional midyear budget cuts. Leggett likely will be recommending as much as $100 million in cuts to the current fiscal spending plan, Beach said.

He expects the council to have Leggett's recommended cuts in December, and newly elected Council President Nancy M. Floreen (D-At large) of Garrett Park said the governing body needs the proposed cuts "as soon as humanly possible."

Beach said last week that he anticipates any budget decisions in fiscal 2010 or fiscal 2011 would result in "significant service reductions" in the county.

Officials are considering options to present to Leggett now, and Beach said the options could include furloughs or layoffs for county employees in the current fiscal year. Leggett previously has said that he would not recommend layoffs or furloughs in fiscal 2010, but said anything is possible in fiscal 2011.

However, county spokesman Patrick Lacefield said Tuesday that Leggett would be unlikely to recommend employee furloughs because not much money could be saved that way.

"However, that doesn't speak to layoffs," Lacefield said.

Officials could decide that "reducing spending means reducing jobs," he said.

Councilwoman Duchy Trachtenberg (D-At large) of North Bethesda called Tuesday's news "sobering" and said the county needed to begin tightening its belt and prioritizing necessary services and programs, including delaying some projects and expenses.

Just one week ago, Montgomery County officials were expecting to close a $370 million budget shortfall in fiscal 2011.

But last week, the Montgomery County Council learned it could be facing a $600 million budget hole in fiscal 2011, which begins July 1, with additional cuts necessary in the current fiscal year. The bad economic news follows word last week that the county received $85 million less than expected in income tax revenue in November.

Revenue losses also are setting up the county for a structural deficit in fiscal 2012 and beyond, Beach said.

Two weeks ago, the council voted to make $30 million in midyear cuts to the current budget.

The total fiscal 2010 budget is $4.4 billion. Leggett has cut about $1.2 billion from the county's past three budgets.