A6
Politics & The Nation cuts from A1
ation Department. “There’s not verymuch left.” Since Albornoz arrived in
Montgomery in 2007, his career staff has gone from 172 to 99 employees. Starting in the new year, rec centers will be closed the equivalent of one day aweek, throwing off schedules for vol- leyball and badminton players and community groups. Albor- noz said he expects that pro- grams for senior citizens and at-risk youths will be cut as well. “The thought of more is sober- ing,” he said. An unexpectedly sharp drop-
off in projected income tax receipts this year and next — coming after a decade in which spending on employee medical and retirement benefits soared by more than 120 percent — has left a deep hole in Montgom- ery’s finances, sixmonths after a tumultuous round of reduc- tions. “I wish I could say to you that
our difficulties are easing, but this is not the case,” Leggett said in an e-mail Thursday to county employees. Departments have two to
three weeks to submit their proposed cuts to Leggett’s bud- get staff in preparation for the fiscal year that begins July 1. LikeMontgomery, the District
is grappling with shortfalls. It faces a $188 million budget gap for the rest of fiscal 2011 and an estimated $345 million gap in fiscal 2012 — a scenario that has council members discussing a possible bump in the income tax rate. Fairfax County is in relatively
good shape, with an estimated $55 million shortfall in the next fiscal year. Although county offi- cials have not been given a specific target, they have been asked to find cuts that would work out on average to about 1 percent of spending, said Susan Datta, director of Fairfax’s De- partment of Management and Budget. The fiscal situation in Prince
George’s won’t be clear until at least next week. Departing County Executive Jack B. John- son (D) has not supplied detailed information about each agency, according to the transition team of County Executive-elect Rush- ern L. Baker III (D). In a fiscal analysis that Johnson released a few days after he was arrested lastmonth on charges ofwitness tampering and destruction of evidence, he said that revenue in the $2.6 billion county govern- ment is likely to be flat. Flat revenue would have been
considered a windfall in Mont- gomery, where budget officials said income tax revenue from the state is much lower than expected. Revenue is downmore than $30 million this year from earlier projections and is pro- jected to be off by about the same amount next year, officials said. Leggett’s $36 million “savings
plan” for this fiscal year would serve as a down payment of sorts on the $300 million-plus short- fall. The County Council is ex- pected to vote on the first round of proposed cuts in coming weeks. In addition to Montgomery’s
lost revenue and history of gen- erous spending, outside forces are also at play, officials said. “The State of Maryland is
facing a $1.6 billion deficit. The realignment in Congress may dampen our regional economy. And President Obama’s just-an- nounced two-year freeze on fed- eral salaries will also adversely affect county tax revenues,” Leg- gett said. Officials said Obama’s move
on salaries will cost Montgom- ery almost $6.9 million over the next two years in lost revenue fromfederal workers who live in the county. In May, Montgomery officials
reduced overall county spending for the first time inmore than 40 years. In June, they endorsed a six-year austerity plan designed to increase reserves and put aside more for retiree health benefits. That plan contemplat- ed a slight increase in spending next year by county agencies. But adhering to that plan —
which some viewed as a bit miserly just months ago — is proving even tougher thanmany officials had thought. The shortfall for the current
fiscal year is estimated at $100 million, Leggett said. In the next fiscal year, the projected gap is more than $200million, officials said. Some neighboring jurisdic-
tions have also faced amismatch between resources and hoped- for spending, leading to a variety of approaches. D.C. Mayor Adrian M. Fenty
(D), who leaves office next month, delivered the council a gap-closing plan of more than $160million in cuts to programs
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FRIDAY, DECEMBER 3, 2010 Budget cuts in Montgomery expected to be ‘really, really painful’
and services throughout the gov- ernment, particularly in human services. To save some of the social services programs and to prepare for the 2012 hit, several council members are suggesting a 1 percent increase in the in- come tax rate on residents with taxable annual income exceed- ing $200,000. In Fairfax, coming up with a
budget for the current fiscal year required $90 million in cuts, a slight increase in property taxes,
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a reduction of almost 200 posi- tions and a slight reduction in the amount of money passed on to schools. The county also rein- stituted a car-registration fee known as the decal tax. In Prince George’s, Johnson
said that the government could face a reduction of about $20 million in state aid because of state budget woes. Theremay be other challenges
ahead for Baker. Johnson used about $40 million in one-time
money this year to plug an $85 million budget gap, and he fur- loughed and laid off some coun- ty employees. Baker is opposed to finding savings by instituting employee furloughs. But he fa- vors lengthening the school day in elementary and middle schools, which would take addi- tional resources. InMontgomery, there is also a
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plan to request a schools budget soon that is tens of millions of dollars greater than what they received this year. The increase would cover higher enrollment and other costs, school officials said. But county officials say that
big increases in school funding would be difficult, given the target of 15 percent reductions for many government depart- ments. The final figures are likely to shift with the arrival of
new fiscal information and with judgments on which cuts identi- fied by each department are palatable. For example, one de- partment might take a 12 per- cent hit, and another would be cut 17 percent, officials said. The targets are “starting
points,” Leggett said.
larism@washpost.com
Staff writers Fredrick Kunkle, Miranda S. Spivack and Nikita R. Stewart contributed to this report.
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