Baltimore County Executive Jim Smith should have an additional $67 million to spend as he prepares next year?s budget ? despite anticipated cuts in state aid and a stagnant housing market ? a panel said Friday.
County spending during the fiscal year that starts July 1 could total $1.55 billion, or less than 5 percent more than this year?s budget, the county?s spending affordability committee said in an annual report released Friday. Committee members called the recommendation cautious in light of national economic forecasts and Maryland?s projected budget deficit.
“The conservative approach the committee has recommended will help preserve the county?s AAA bond rating, protect our constituents? wallets, and still allow us to move forward with important projects and programs that make Baltimore County stand out in the state,” said Council Chairman Sam Moxley, a Catonsville Democrat.
The county?s current operating budget, which covers basic government services like trash collection and police protection,is $1.48 billion.
The 2009 fiscal year is expected to sustain market trends that pose a threat to the county?s economy, such as the housing market slowdown, according to the committee members. They anticipate county revenues to increase by $54.6 million over this year?s revenues.
That is largely attributed to consistently high property values, said Anirban Basu, chairman of the county?s economic advisory committee. But as the volume of home sales decline, Basu said the county will collect less in transfer and recordation taxes.
Revenue growth from income taxes, too, could decline, Basu said.
“It is clear the national economy has become quite weak, which will translate into an accelerated pace of layoffs and slower salary growth,” Basu said.
The spending affordability committee was created in 1991 and is tasked with preventing the county from spending more than it collects. This year?s recommendation is $107.2 million more than revenue estimates ? a surplus members said could be used for tax reduction.
“People have really got hit hard with assessments,” said Councilman Joe Bartenfelder, a Fullerton Democrat who is on the committee. “I think a lot of people are going to have to appeal them.”
