County’s shortfall looking worse
The Albemarle County Board of Supervisors already knew the situation was bad — but new budget shortfall projections indicate the county’s financial situation is even worse.
County staff on Friday projected a $4.9 million budget shortfall, up from $4.1 million estimate made in early September.
“It’s gone up in the wrong direction,” county spokeswoman Lee Catlin said.
The county is tightening spending this year, leaving vacant positions unfilled and tapping into lockbox funds, in a bid to make ends meet.
County officials have been trying to formulate scenarios where the budget shortfall for fiscal 2010 could be reduced. If the county significantly reduced discretionary spending, eliminated employee salary increases, added a cent to the real-estate tax rate and left 57 positions unfilled, it would still come up $1.8 million short.
“It seems like every time we get an update, the number gets worse,” Supervisor Den-nis S. Rooker said.
The shortfall has changed the way both the Board of Supervisors and the School Board approach the budget process.
At a School Board meeting Thursday, a majority of School Board members directed Superintendent Pam Moran to formulate a funding request that includes no pay increase for teachers and other school employees.
The School Board will consider Moran’s plan as a basis for a budget request that will be sent to the Board of Supervisors.
“It’s not a good situation,” School Board member Pamela Moynihan said in an interview.
The board’s direction to Moran was a sign that teachers might not get salary increases, she said, but added, “Nothing is ever out of the question.”
“None of us like to do it … but in the end, we just have to do what we have to do,” Moynihan said, adding that the school division still faces a $7.3 million shortfall next fiscal year even if it doesn’t increase salaries. Moynihan said School Board members wouldn’t want to resort to teacher layoffs and major increases in class sizes.
The School Board asked that Moran create a funding request that absorbs the cost of increased health care and dental premiums. If the school system offered market-based compensation increases for teachers and classified employees — increases of 3.35 percent and 3.93 percent, respectively — that would leave the division with an $11.4 million deficit.
Albemarle staffers are also proposing no salary increases for county employees outside the school system. Assistant County Executive Tom Foley said that while county leaders are tightening the belt as much as possible, they are focusing on proposals that do not cut core services.
Supervisor David L. Slutzky said that the Board of Supervisors has no choice but to either reduce services or raise the real estate tax rate, now 71 cents per $100 assessed value.
Officials said that if the $1.8 million adjusted shortfall were to be eliminated strictly with an increase in the tax rate, the rate would have to be increased to 75 cents.
Advertisement
Reader Reactions
David Slutzky is an embarrassment. Why doesn’t he consider using OUR tax money more effectively and efficiently to be an option? His comment assumes that every penny of our tax money is currently being spent as best as can be.
Businesses and personal households are often faced with “doing more with less”—so why not local government?
Why are we spending $2.4M to encourage teachers and other school employees to LEAVE the school division under the VERIP program (http://www.albemarle.org/department.asp?department=hr&relpage=3178), rather than incentivizing them to stay? Let’s take that money, return 1/2 to the taxpayers and use the other half to increase teacher salaries—resulting in better services at LESS cost.
Let’s face it folks, the news isn’t good anywhere. We all have to suck it up and tighten our belts more than a little. Let’s first look at putting a freeze on salary increases to keep as many jobs as possible. Then cuts need to be made from the top down, not by chopping jobs for those at the bottom of the ladder who have a hard enough time in good times. And let’s be sure property values have been appropriately reevaluated before even whispering the t-word. Those fortunate enough to hold onto their homes will be hard pressed to pay higher taxes in this train wreck of an economy.
When faced with revenue shortfalls, most businesses first reduce head count, and then reduce services.
You need an across the board layoff of a specific percent of employees and a cancellation of all raises both at the school and government levels before you even think about a tax increase.
Advertisement