Anne Arundel County officials are looking for cost-cutting measures to save money for what could be a difficult county budget session next spring.
“We?re operating lean, and we have to squeeze marginal expenses,” said county?s Budget Officer John Hammond.
The county?s budget typically grows at rate of about 7 percent a year, but early forecasts show only a 4 percent to 5 percent increase, Hammond said.
A combination of a slow economy, slumping housing market and reduced state funding has led to belt-tightening, officials say.
County Executive John R. Leopold has asked all departments to draft their budgets factoring in a 5 percent cut in the event of a doomsday scenario.
Anne Arundel significantly curtailed its take-home vehicle program, with many departments no longer permitted to use vehicles outside of work. Officials said the move could save the county $600,000 in fuel and maintenance costs.
“We?re trying to do things without the bells and whistles,” Hammond said.
Leopold and several County Council members appear supportive of raising impact fees on new developers, which would reduce the county?s out-of-pocket expenses to upgrade roads, schools and water pipes.
A bill to raise those fees is expected to appear next week, officials say.
In most governments, cuts in revenues would be balanced by higher taxes. But Anne Arundel?s tax rate is capped, meaning if housing values go up, the tax rate must come down to keep within the law.
That limits the county?s ability to raise money.
The possibility of further cuts from the state has county officials looking for ways to turn pennies into dollars.
The state has cut about $14 million from Anne Arundel, with more likely to come, Hammond said.
Gov. Martin O?Malley?s “doomsday” budget, proposed in October before the General Assembly?s special session, included a more than $56 million reduction in funding to Anne Arundel.
Three major issues face Anne Arundel during the spring budget work sessions: Dealing with rising costs of personnel and retirement, meeting the needs of a growing school system and funding needy nonprofits.
The school system has asked for $100 million more than it received last year. Leopold called the request “ambitious,” but noted it was less than last year?s request. He has remained committed to putting in a raise for teachers in the upcoming budget.
And with the economy on a downward turn, helping nonprofits may be more of a priority this year, officials say.
Though many key issues face the council in the new year, many say the budget is expected to be one of the biggest challenges.
“We have a situation where history may repeat itself in May 2008,” said Councilman Ronald Dillon, R-District 3, referring to the difficult budget session in 2007.
“And in this case, it could be worse.”
Fast fact
Property taxes are at 0.891 cents per $100 of assessed value. For example, a resident who owns a $450,000 property would pay $4,009.50.
