Anne Arundel County Executive John R. Leopold is calling for another hiring freeze in the face of a potential budget deficit and declining tax revenue.
“We are preparing for the stormy budgetary winds.” said Leopold, who is hoping this indefinite hiring freeze will save $2.5 million.
The freeze will start Wednesday and not affect the public safety departments or the school system.
It is the third hiring freeze in two years, with the other two freezes saving a total of about $5 million, Leopold said.
Anne Arundel has lost millions of dollars in real estate taxes from the fall of the housing market. The county lost $5 million in real estate taxes in August, and county officials are hoping September’s figures will show a rebound.
Anne Arundel could face a $250 million deficit by 2013 if steps aren’t taken to boost revenue.
But increasing taxes doesn’t bode well with Anne Arundel voters who have enjoyed the state’s lowest property tax rate.
Leopold has railed against tax increases, and instead has focused on increasing fees and reducing spending such as hiring freezes and limiting the number of take-home vehicles.
Essential services will continue at the same levels, Leopold said.
Furloughs are a “last resort,” Leopold said, an option Prince George’s County Executive Jack Johnson recently used to help quell his county’s budget woes.
Anne Arundel, meanwhile, will recoup some money for its health department.
Starting Wednesday, permitting fees for restaurants, temporary food stands and wells will increase after the County Council passed legislation in May aimed at helping the health department recoup operating costs.
The hardest hit will be new restaurants, temporary food vendors such as those at carnivals and festivals, and those building new wells. The fee schedule is:
• Restaurants will pay between $400 and $800 more in permitting fees based on the type of restaurant.
• Food vendors will pay $195 for an operating licenses, up from an $80 fee.
• Permits to construct new wells will go up from $160 to $630.
• Replacement wells will go up from $160 to $315.
Food vendors and well builders can submit their applications before Wednesday to pay the current fees, said Ellin Jones, the health department’s spokeswoman.
Restaurants, however, will have to renew their operating licenses in February, and will be forced to pay the new fees.
