Putting the County’s fiscal house in order was job one when County Executive Ike Leggett took office. And, due to the economic downturn, that work continues.
Since March 15, when the Executive released his Fiscal Year 2011 Recommended Operating Budget that closed an estimated $780 million gap, the County has received more bad news from the State concerning declining tax revenues due to the County. Furthermore, warning signs from those who rate County bonds require the Executive to increase the County’s reserve for the coming year to six percent from the five percent originally projected.
All told, these factors mean an additional gap of nearly $200 million that must be closed for the remainder of this year and the next.
In late April, Leggett sent to the County Council additional recommendations (pdf) to close this new gap.
Click here to see more on the release of the County Executive's recommended budget on March 15.
All told, the nearly $1 billion gap for FY2011 is filled mostly -- 83% -- by spending reductions and other changes. The remainder is mainly an increase in the County’s fuel energy tax that would raise, according to present calculations, the average residential household bill by $8 a month and the average business by $290 a month. Leggett recommended that the increase in the energy tax sunset at the end of FY12.
POSTED AT: Friday, April 30, 2010 | 7:00:00 AM