Budget woes on the way
A financial retreat Tuesday to give Prince William supervisors a heads-up for fiscal 2011 budget issues might be summed in a sentence: Cuts are on the way.
"We've got another horrendous budget" to plan in the coming months, said Chairman Corey Stewart, R-At-Large, at one point in the hours-long meeting at Old Manassas Courthouse.
The good news is short. Real estate in the county is starting to appreciate, and the 10- and 5-percent drops in values seen the past couple years seem to have come to a halt, said Chris Martino, finance director. The appreciation is only about 1 percent, however.
"We think it's going to be very slow and gradual," Martino said of the upswing in values. "We will need to see a few more years to get back to where we were."
The bad news: Federal indicators point to a weak national economy, with continued high unemployment and slow retail sales. State general revenue collections have declined "an unprecedented 11 consecutive months in fiscal year 2009," according to written summaries from Martino. That means less money coming from Richmond.
"That doesn't portend good things to come," Martino said. "In fact, we'll be hit with state budget cuts, I'm sure."
And the major revenue raisers on the local level—housing starts and retail sales—don't bode any better for the next year or two.
"Foreclosures are still a very significant factor in our housing market," Martino said. "Even thought the residential has improved, we've seen significant vacancy rates in commercial."
Moreover, people are holding off buying new vehicles and the county's original estimate for this sales tax source no longer holds true.
"We're now expecting revenues to come in about $5.7 million less than what we predicted this fiscal year," Martino said. "Folks aren't buying cars."
Still on the national horizon is an expected wave of foreclosures from upcoming mortgage rate adjustments, set for 2010 and 2011, that will skyrocket the payments of homeowners on houses that, in many cases, are valued tens of thousands of dollars less than their sales prices. It's not known how this rate reset will affect Prince William County, or whether federal incentive packages will help in either the short- or long-term.
With all that in mind, county staffers have worked a plan to budget by risk factor. Staff created a 20-point scale to rate each of the 153 county programs by need, the highest numbers going to those considered life saving and the lowest to those that are merely conveniences. The point was to prioritize funding.
Long lines at the library, for example, might be inconvenient for residents. But a mentally ill criminal wandering the streets might be deadly. Inmate security at the Adult Detention Center, therefore, merited a score of 20 points, while funding for the library was prioritized much lower.
One other budget consideration: Mandated contributions to the state's retirement system could be millions more than expected.
"This is a major wild card," said Melissa Peacor, assistant county executive, on the inability of county budget planners to sidestep whatever fiscal demands come from this arena.
Supervisors also heard run-downs of the various tax-rate scenarios, with amounts ranging between $1.22 and $1.33, as well as various options to generate additional revenues such as increasing the solid waste fee.
Tuesday's meeting was only to set the stage for budget planning. Staff will not present an actual budget for supervisors to consider until February.
Staff writer Cheryl Chumley can be reached at 703-670-1907.
Advertisement
Reader Reactions
Cheryl Chumley: Thanks for reporting
on local issues as BOCS is now in
work sessions to “scratch their heads”
of outcome of budget issues.
Phdee: Thanks for attempting to remind
that this article is a local government
report, based on PWC BOCS Meeting.
Good luck in your efforts.
BTW, in my quest to match you link for link, here’s a run down on the privatized Chile Pension Fund. That would be the fund that Conservatives keep point to as the model they want to take this country to.
This article is written by the LaRouche PAC, who I believe is one of Conservative’s former heroes?
http://www.larouchepac.com/pages/otherartic_files/2005/050207_ss_chile.htm
Joni6100,
There is a simple fix for social security to keep us baby boomers from bankrupting the system (of which I have been paying into since I was 16). That fix would be raising or eliminating the SS income tax from it’s present $85,000. That cap was created by Reagen, and is one of the principle causes that SS will someday, maybe, possibly, be in trouble to the point that the SS administration may have to decrease beneficiary payments by a small percentage.
Once again tho, I do agree with you - that we will never agree on anything.
http://www.namyth.com/SocialismWORKS!/
ron, you and I will never agree about tax cuts, Reagan, taxing the rich, aiding and abetting proverty, capitalism or any of the rest. You and others seem to forget that many IF NOT MOST of the economic problems we had/have did not start overnight. Bush was not a conservative, he was not fiscally responsible, and that along with a SPENDING SPREE in congress, the idiots starting at Fannie and Freddie, that threw us into this economy. If you add to that the 100 Trillion dollar debt we really have (you know the real one they hide from us)mostly in UNFUNDED MANDATES, you can spell disaster.
Look, we saw it coming, conservatives tried to fix the problems with social security and medicare along with Clinton and even Bush. EVERYONE KNEW THAT WITH PEOPLE LIVING LONGER AND HAVING LESS KIDS, the baby boomers would bankrupt the country. People screamed when they tried to raise the retirement age, just a few years ago, now, along with what they did with BAD LOANS given to STUPID people, we are in fact bankrupt.
The solution ?? it’s too painful for most Americans to wrap their heads around, so, they throw little bones at us and expect us to be quiet.
Bye the way, Joni6100,
I actually have a private-sector job with clients who expect results, on top of a daily 70 mile round-trip commute. And family life in the evenings. Meaning - my on-line time is limited.
But I am going to make an observation. You write:
“We have to decide if we are a true CAPITALIST FREE country or if we want what they are selling, and that is Socialism, almost to Marxism. “
Yet, you claim a government protected job with two kids in a state-sponsored college. You don’t seem to be complaining about about your kids using publicly-funded highways to come home on weekends. You seem to be perfectly content with a five-day work week, which is a direct result of government labor laws.
I’ve been in “pure Capitalistic” countries, also known as “third-world” or “developing” nations. And not just in the carefully controlled tourist areas, where all the workers are smiling and act happy about being treated as servants by foreigners.
I’ve also traveled and lived in “Socialist” countries also known as “Western Europe.“ I can live with the horrors of a four-day work-week; six weeks paid vacation every year (that people are actually forced to use); health care for all people; a social security system much more robust than what we have here in the US which ensures no one will o hungry or homeless. And a justice system that actually is mostly fair and impartial, regardless of a person’s ability to hire expensive lawyers or have influential friends.
I can live with that much easier than I can live with seeing beggars in the streets; women forced into prostitution as sex slaves because there is no other jobs available; pregnant women and young children working 12 - 16 hour days picking lettuce in 100 degree heat for $1 / hr; old people freezing to death in their homes because they had no money to pay utilities, and the privately-run company turned off electricity; people dying because they cannot afford to pay for medical care.
And yes, everything I just wrote is happening right now, right here in our nation. If those conditions don’t bother you - you really need to go live somewhere else. This is America, not Zimbabwe.
Really Ron??? you said..
<<“Obama is a product of the Marxist Movement begun over 40 years ago. “
You’re just being ridiculous>>>ok, here we go…
In a debate, Obama said the following: “Judge me by the people who surround me.
In Hawaii, Barack was mentored by a member of the Communist Party by the name of Frank Marshall Davis. Davis, whom Obama calls “Frank” in his memoir “Dreams from My Father,” was an unrepentant communist. He stayed with the Communist Party even after the Hitler-Stalin pact.
Saul Alinsky…I think that in order to better understand who Barack Obama the man is we need to look to his past. That is why I’m starting a new feature on Deconstructing The News called Obama’s Mentors. Princeton.edu defines the word mentor as “a wise and trusted guide and ad visor.” In part 1 of Obama’s Mentors we’ll learn a little about Saul Alinsky.
Van Jones…“I was a rowdy nationalist on April 28th, and then the verdicts came down on April 29th,“ he said. “By August, I was a communist.“ In 1994, the young activists formed a socialist collective, Standing Together to Organize a Revolutionary Movement, or STORM, which held study groups on the theories of Marx and Lenin and dreamed of a multiracial socialist utopia.
Hired to run Obama’s blog, Sam Graham-Felsen writes in a Marxist publications that openly calls for revolution against the American government.
Mark Lloyd…Lloyd is in fact a Saul Alinsky disciple. In his 2006 book entitled Prologue to a Farce: Communication and Democracy in America, he calls for an all-out “confrontational movement” against private media. He wants leftist activists - through incessant political pressure - and the government - through the creation of a totally untenable operating environment of fees, fines and regulations - to work together to force the commercial broadcasters out, to be replaced by public broadcasters.
The Weather Underground terrorists, Bill Ayers and Bernardine Dohrn, weren’t just any ‘60s radicals. They were communists who openly supported the enemy killing Americans in Vietnam. Some of the members in this group, including Dohrn, had traveled to Havana, Cuba, to get instructions from the communists about how to wage their campaign in the United States.
There are two reports that state Sen. Palmer had been involved in a Communist Party front group called the U.S. Peace Council and had actually made a trip to the old Soviet Union.
Dr. Quentin Young had been accused of involvement and membership in the Communist Party, and he refused to answer as well when he was called before a committee to explain his financial support for radicals who were behind the riots in Chicago at the Democratic National Convention back in 1968.
Joni6100
“so, now,DON’T YOU FEEL STUPID?????“
Actually, no. I don’t. There’s no way for me to know what is going on in your private life unless you explain it. Nice of you to drop back in and answer some tough questions. I do notice that wedding plans must have stressed you out, AS YOU’RE MOSTLY YELLING AT US for what is really a honest question. Please chill.
While I actually agree with a few f your items; National sales tax (VAT), and no bailouts for businesses. The rest of your list is mostly straight Republican talking points, and really doesn’t answer Ray’s question.
You also don’t really show any recognition of actual economics or business concepts.
Obama inherited a full-blown Depression economy from Bush. Actions that might work when an economy is normal, doesn’t work when unemployment in some parts of the US is up over 20%, with no new private sector job prospects even a consideration.
Think about it; You keep claiming that Reagen’s tax cuts in the 1980’s created the greatest expansion in our nation’s economy ever, and that if you cut taxe on the rich, they use their money to invst in new business thereby creating wealth and prosperity for all.
So - where is it? Where is all that new business now that 1% of the people in this nation control 90% of the wealth? Why is it that in Detroit, for just one example, the local government can’t even give away their vacant houses?
And for this:
“Obama is a product of the Marxist Movement begun over 40 years ago. “
You’re just being ridiculous.
Ray, I am speaking of what happened about 2 1/2 or 3 years ago. Businesses were scared, consumers were scared, and I remember hearing over and over and over, on every news channel, and every radio station for 2 years how bad things were, the sky is falling, run for the hills, people got scared, people stopped spending (myself included).
Add to that, a GOVERNMENT stepping in, forcing banks to make bad loans to people who COULD NOT AFFORD THEM, (The Community Reinvestment Act), and what happened, that’s right, out of control weasel lending practices.
Add to that, the unions especially the car industry (don’t bother dee) that knew they were in REAL trouble with their legacy costs. The made promises (contracts) with their members that they could not keep. This is the biggest reason we hear Pelosi, Reid and Obama scrambling to find a government run health care program. They are in debt to the likes of SEIU, UAW and others and those groups are coming to terms with an aging population that is living so much longer that legacy costs are bankrupting them, mmmm kind of like the federal government and S.S. and Medicare. They made promises they can’t keep, now they have to figure out a new way because those two programs are something like 50 or 60 TRILLION in debt.
We have to decide if we are a true CAPITALIST FREE country or if we want what they are selling, and that is Socialism, almost to Marxism. The difference between America and most of the rest of the world is that we are free, but with that freedom, we must allow those who need to fail, fail including GM, Chrysler and the rest. People in this country have become, lazy, needy, and now have the feeling of entitlement, it trickles down into every aspect of life. If you have kids in school, you see it with kids and parents who DEMAND grades their kids don’t earn and promotion they should not get. It is getting worse everyday, and it is destroying our great country.
Yet all those points are correct and true, he still should have sent more troops then what were sent recently it was the right thing to do yet he didn’t do it. Ball back in your court Ray now try to hold serve and stay on topic.
Post a Comment(Requires free registration)
- Please avoid offensive, vulgar, or hateful language.
- Respect others.
- Use the "Flag Comment" link when necessary.
- See the Terms and Conditions for details.


Advertisement