Prince William County supervisors will propose raising the property tax rate 16 percent to help the county deal with a looming $190 million shortfall.
The Board of Supervisors, which is scheduled to meet tonight with the school board to discuss the budget, is recommending a tax rate of $1.13 per $100 of assessed value, up from the current 97-cent rate.
Because of a plunge in home values, however, homeowners are expected to see an average 18 percent drop in their tax bills at the new rate. The median house price plummeted 43 percent to $188,000 in October from $330,000 a year ago, according to statistics released Monday by Metropolitan Regional Information Systems.
The supervisors directed staff to prepare a budget based on the new rate at its Oct. 31 budget retreat.
Prince William officials still would have to make up $26 million with the higher tax rate, said Supervisor Martin Nohe, R-Coles.
“I guess the idea is, the sooner we get the bad news, the better,” said Don Richardson, Gainesville representative for the school board.
“Whatever we do this year, it’s going to be a tough budget year,” Richardson said.
Supervisors Chairman Corey Stewart said officials expect to cut 20 percent from all county agencies except for public safety.
“There’s no good way to do it. It’s going to be a rough year.”
The public school system would need to cut about $14 million from the budget under the higher tax rate, Richardson said.
“That’s a pretty big hit,” he said. “We’ve got a fairly high-priority high school due in two years.”
The fiscal 2009-2014 capital budget has nearly $500 million slated for additions to county schools or new construction, including nearly $86 million for the Kettle Run High School in the fiscal 2009 and 2010 budgets.
Nohe said the school board would have to adjust the five-year plan because of declining county revenue.
“[The] five-year plan turned out not to be very realistic,” he said. “Something’s going to have to give on that budget.”
