Howard County Executive James Robey touted his last county budget as anindicator of a robust local economy.
“We are on firm footing because of the last revenue year,” Robey said, referring to the extra $67.9 million in revenue, mostly from property taxes, that he used to balance the upcoming budget.
Robey presented to the County Council his proposed fiscal 2007 budget Monday.
The extra revenue boosted the reserves ? often referred to as pay-as-you-go funds ? that can be spent directly, so the county does not have to sell as many bonds and pay interest.
“We?re doing better than a few years ago when we had almost no surplus, and a lower pay-as-you-go” fund, said County Budget Administrator Jonathan Seeman.
Robey increased the pay-as-you-go reserves by $8 million this year for a total of $21 million, resulting in a savings of about $12 million over the next 20 years, Seeman said.
Even with the healthy numbers and a hefty $15 million surplus, Robey said rising fuel, energy, material and labor costs still threaten the local economy.
As a result, he decided to budget an extra $1.6 million this year to pay for rising fuel costs, and an extra $700,000 for increased utilities.
“We are taking care not to lose the cushion the last three years have created,” Robey said.
The budget in detail
The total proposed operating budget for fiscal 2007 increased about 10.5 percent over last year?s budget, from $1,067,955,842 last year to $1,179,813,781 this year.
Now that County Executive James Robey has presented his budget, the County Council will hold work sessions and public hearings. The council members can cut budget items, but can only raise the education budget.
The operating budget funds the government?s day-to-day activities, including police, education, public facilities and community service.
lgreenback@baltimoreexaminer
