Local

[Print]  [Email]        

It’s official: MontCo budget shortfall doubles to $500M

By: Kathleen Miller
Examiner Staff Writer
November 25, 2008

Montgomery County officials publicly acknowledged Monday that the county’s budget shortfall had doubled in size, ballooning from a previously estimated gap of $250 million to at least $500 million.

The Examiner reported last week that Councilwoman Duchy Trachtenberg, who chairs the county’s Management and Fiscal Policy Committee, said the budget shortfall was in the $400 million to $500 million range. At the time, Chief Administrative Officer Tim Firestine said a $500 million budget shortfall seemed “a bit high,” but on Monday, Finance Director Jennifer Barrett told council members to prepare for an “at least doubling of the budget gap.”

Barrett and other members of County Executive Ike Leggett’s finance team had predicted a $251 million gap in September and October memos, but issued an “early alert” Monday detailing a “major write-down of revenue estimates.”

Last week, county leaders learned they would receive $31 million less than expected in income tax revenue from late filers, who had until Oct. 15 to complete their taxes.

County officials said they aren’t sure yet what caused the $31 million discrepancy. Late filers tend to be wealthy individuals who have more complex tax documents, typically involving investments. The returns are from 2007, however, when the stock market closed the year slightly up from the year before, compared to the 40 percent drop so far this year.

Barrett’s memo said an 11 percent decline in average home sale prices between July and September, plus a drop-off in the number of homes being sold were also contributing to Montgomery’s budget woes. The county collects transfer and recordation taxes from housing sales, and a sagging housing market means less revenue.

“There are across-the-board problems,” Barrett said.

The shortfall could become even worse this winter, after the state makes another round of anticipated cuts to county aid.

Council members are wrestling with roughly $50 million in cuts recommended by Leggett.

“I think there is a perception among some people that after next week it will all be over,” Councilman Don Praisner said during a meeting on budget issues. “We do not have the money to spend. You might not like it, but that’s a fact of life right now.”


To view this site, you need to have Flash Player 8.0 or later installed. Click here to get the latest Flash player.


Most Popular Headlines



 


 



 

Reader Comments

All comments on this page are subject to our Terms of Use and do not necessarily reflect the views of the Examiner or its staff. Comment box is limited to 250 words.

Lose lips cost money

Nov 25, 2008

I guess Montgomery could not let Fairfax take the lead. Same policies lead to the same deficits. Can you say more illegals please ? or a little gentler diversity? Does this account for any of the hundreds of illegal housekeepers?

 

More pork sausages Mom

Nov 25, 2008

I guess Montgomery could not let Fairfax take the lead. Same policies lead to the same deficits. Can you say more illegals please ? or a little gentler diversity? Does this account for any of the hundreds of illegal housekeepers?

 

More pork sausages Mom

Nov 25, 2008

I guess Montgomery could not let Fairfax take the lead. Same policies lead to the same deficits. Can you say more illegals please ? or a little gentler diversity? Does this account for any of the hundreds of illegal housekeepers?

 

Citizen Payne

Nov 25, 2008

It is time to stop funding CASA of Maryland and take a long look at the cost of illegal aliens in our county. Now, the illegals are not only costing us in dollars but innocent lives. If Leggett hasn't the courage to cut the union contracts, he should appoint a citizen's group who will.

 


Post a comment


Email:
(This will not be displayed or shared. Privacy Policy)

Display Name:

Comment:




Sports

Oklahoma State's Keith Toston is brought down by Iowa State's Patrick Neal, left, and Kennard Banks during the first half of an NCAA college football game, Saturday, Nov. 7, 2009 in Ames, Iowa. (AP Photo/Steve Pope)

Toston's running, Robinson's passing lead No. 18 Oklahoma State past Iowa State 34-8

Keith Toston ran for a career-high 206 yards and three touchdowns, Zac Robinson threw a touchdown pass and No. 18 Oklahoma State bounced back from its drubbing by Texas with a 34-8 victory over Iowa State on Saturday. Full story

Politics

Demonstrators chant on Capitol Hill in Washington, Thursday, Nov. 5, 2009, during a Republican health Care reform rally. (AP Photo/Jose Luis Magana)

House Democrats clear impasse over abortion holding up vote on health care legislation

Capping months of months of struggle, House Democrats cleared an abortion-related impasse blocking a vote on sweeping health care legislation late Friday and officials expressed optimism they had finally lined up the support needed to pass President Barack Obama's top domestic priority. Full story

Entertainment

'Golden Girls' star McClanahan has bypass surgery

Rue McClanahan, who played sexy Southern belle Blanche Devereaux on "The Golden Girls," was recovering Thursday from heart bypass surgery at a New York City hospital. Full story