Shortfall to hit county budget
By COBY LaRUE
Staff
Alleghany County's budget, like many across the state and nation, is facing revenue shortfalls this year due to the shrinking economy.
County Manager Don Adams told commissioners at a special budget session last week that their job would not be an easy one this year with a total anticipated shortfall of around $400,000.
Including totals of costs the county cannot fully control, like utilities and insurance, Adams said the county could be facing cuts of up to 5 percent in order to balance the upcoming budget.
The commissioners voiced their support to first look at cuts rather than any tax increases, which they said would be difficult for the public to handle with the economy already in a recession. The county's current tax rate, 43 cents per $100 in value, ranks 13th lowest in the state of the 100 counties, indicate documents Adams gave to commissioners.
He highlighted the budget projections for the current year's budget, which will impact the upcoming budget that is required by law to go into effect on July 1, 2009. The projections show declines in sales tax revenues, investment earnings, register of deeds revenues and building inspection fees, counterbalanced somewhat by increases in revenues from the Alleghany County Jail, Alleghany Emergency Medical Services, federal stimulus Medicaid relief and lower cost in foster care.
In his report, Adams stated, "Although revenues are down in fiscal year ‘08-‘09, there are other revenues that have the potential to make up for the shortfall. Current expenses are in line with (the) budget." Adams noted that the outlook appears bleak for the upcoming budget's revenue shortfalls. "I believe it is a safe assumption that the majority of our revenue shortfalls will remain that way (or worse) in fiscal year 2009-2010," he said.
Adams presented a spate of current year totals, which typically are used to anticipate the totals for the coming year. The budget year, which officially began July 1, 2008, is still in progress and will continue until June 30, 2009. Adams said projections are always estimates until all the figures are actually tallied closer to the end of the budget year.
The jail revenues from housing federal prisoners are expected to increase about $168,000 this year, while EMS revenues are up by $100,000.
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