Arlington County begins 2007 facedwith a budget shortfall of $20 million for fiscal 2008, but officials are confident that the county can draft a spending plan that does not call for tax increases.
County officials said a slowing real estate market led to the funding gap. In recent years, real estate tax revenues skyrocketed as the price of homes went up. Now, with the real estate market softening, county officials are working on a budget that does not require tax increases.
Mark Schwartz, director of Arlington’s management and finance department, said this year’s budget process is a return to the year’s before the real estate boom.
“We continue to be in a really good position,” Schwartz recently told The Examiner. “We’re not as fortunate as we’ve been in the last five years.”
The current fiscal year, 2007, began on July 1 and continues through June 2007. The shortfall is expected for the fiscal year after that.
The 2008 gap could be larger than the $20 million figure listed in the report, as national accounting standards mandate the county change the way it accounts for benefit costs. The rising cost of benefits and a drop in real estate tax revenues are the main culprits behind the funding gap, according to county officials.
The county board is also expected to name Paul Ferguson chairman and Walter Tejada vice chairman for 2007. This will be Ferguson’s third term as chairman, serving previously in 1999 and 2003. Ferguson lists environmental issues and smart growth as two of his areas of interest. He was elected in 1996, and is a practicing attorney.
This is Tejada’s first leadership position on the board. He has served since 2003.
Tejada immigrated from El Salvador when he was 13, and worked as an aide to Rep. Jim Moran, D-Va.
