Prince William County agencies are steeling for budget cuts of up to 33 percent.
“We’ve asked departments to envision what they would look like if they [were] two-thirds the size,” County Executive Craig Gerhart said.
Gerhart said the budget for fiscal 2009 — which started July 1 — looks “pretty good,” but added that it’s “very clear that we are experiencing a decline in residential property values.”
County Board of Supervisors Chairman Corey Stewart, R-at large, said drastic measures will be necessary to cope with declining real estate tax revenues.
“There’s going to be some pain here,” he said. “The entire board recognizes that it’s a very tough budget year — an historically tough budget year.”
Stewart said a “permanent reduction in the level of services” provided by the county was possible, and said Prince William is preparing for “cuts we haven’t seen in 15 years.”
He said the alternative solution of a “massive” tax increase would be unfair to county residents, considering the state of the economy and the continuing drop in housing prices.
“We’re not going to go in that direction,” he said.
Local states and counties are feeling the economic pinch, with Virginia Gov. Tim Kaine telling state agency directors to draw up plans for 15 percent cuts, and Maryland facing a shortfall of more than $400 million.
Fairfax, Loudoun, Montgomery and Prince George’s counties all have announced they are facing major budget shortfalls.
The Prince William Board of Supervisors approved a 27 percent property tax increase in March.
Supervisors battled through a 21-day stalemate before voting to increase taxes from 78.7 cents to $1 per $100 of assessed value.
Gerhart said talks of cuts were still in the early stages.
“I think we’re jump-starting the budget process by a few months,” he said. “We recognize that the earlier we start this process, the more time we have to develop options.”
Agencies likely will present their budget plans to Gerhart in October.
