Baltimore County’s budget woes have deepened.

County Auditor Mary Allen told members of the county’s Spending Affordability Committee on Tuesday that revenues continue to decline from projections — and are now $144 million below what the county had expected.

That number represents a shortfall that has grown by $6 million over the $138 million revenue deficit reported in December.

Lower than expected income and property taxes for the current budget year, which ends June 30, continue to drive the growing deficit, according to Allen.

“This year ... is extraordinary in terms of the revenue situation,” Allen said.

Allen said the additional $6 million in revenue shortfalls are based on adjustments from state aid and year-to-date collections in income and property taxes.

The estimates don’t take into account increases in spending driven by this winter’s snow storms. The county already spent the $6 million budgeted for snow removal prior to the storm that left as much as 5 inches in some areas of the county on Feb. 2 — or the storm that is expected this weekend.

Thus far, County Executive Jim Smith has not identified how he will close the gap between revenues and spending. That must be done by the time the budget year ends June 30.

“We will finish with a balanced budget,” Keith Dorsey director of the Office of Budget and Finance, told Councilman John Olszewski Sr. and the spending affordability committee.

Dorsey said the administration is “committed to avoiding layoffs, furloughs or other actions like that.”

One state legislator has said he wants to hold hearings in Annapolis on the shortfall. Republican Del. Pat McDonough — who is considered a potential candidate for county executive — said the delegation should look into the budget issue because the General Assembly will be called upon to decide how much state aid the county gets next year.

Setting the stage for next year

The Spending Affordability Committee is appointed by County Council and sets limits on growth of the general fund and capital budgets each year.

Allen’s report on revenue came during a meeting in which the committee set a growth rate for what will essentially be County Executive Jim Smith’s final budget. That budget will be delivered to the council in April.

The downward trend in revenue has prompted the committee to reduce spending figures this year — affecting the baseline for budget growth next year. That’s because growth of the 2011 budget is based on a five-year average of personal income growth.

The committee set the growth rate for the next budget at a 3.8 percent increase over $1.57 billion baseline spending in the current budget year.

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user comments (3)

user augieboy says...

"Spending Affordabilty Committee" - a real "SAC" of you know what if you ask me. Much like the State Budget whoas, it's a convenience to 'those whom spend' to have such a committee. They are easy to blame... When times are good and revenues are free flowing, the first reaction is to grow services or prop up another pet project, instead of providing relief to those footing the bill. When times are bad, and spending or cuts are necessary...oh the excuses... Our own household experiences and decisions would never allow such bad habits, and for those whom find themselves in that unfortunate situation, don't have a committee to blame, nor a seemingly endless supply of money or credit to live on... The General Assembly and the Council can in fact take money away, represent us properly and as you like to state while on the stump..."make the hard decisions", all spending, mandatory and general fund needs to be examined.

Posted 3:42 PM, 02.03.10

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user perryhallkathy says...

No one seems to be talking about the 3 1/2% pay raise Jim Smith gave all the Baltimore County teachers on January 1. We all support our teachers - but come on!! You cannot give teachers a raise in an election year and then complain about a not having enough money.

Posted 8:57 PM, 02.03.10

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user stevewhisler says...

One of my Democrat opponents running for County Council here in southwest Baltimore County regurgitated the propoganda of the Smith Administration ... "Baltimore County is one of less than 30, out of 3077, counties in US to have a AAA bond rating from all 3 municipal rating agencies." My very inexperience opponent and the incumbents of Towson's one-party political machine just don't get it. I'm glad the county has a great credit rating. I'm glad the county has a high credit limit that can be used if necessary for the right projects. However, the facts are very simple ... Baltimore County's public debt was $542 million in 2005 and it is projected to hit $1.4 billion by 2014. Most responsible Baltimore County families with great credit ratings and high limits don't use the plastic for purchases. Many only use their plastic for emergencies or very essential purchases. Contrast that practice with County Executive Jim Smith and his democrat allies on the Council who have failed to exercised self-control or leadership on spending. They continue to spend much of the bond money on nice-to-have comforts instead of waiting until better times. Both the state and federal government have AAA bond ratings. Perhaps my opponent and the irresponsible incumbents in our county and state's one-party machine think things are rosy at the state and federal level, too! Wake up incumbents ... you're spending too much. We all know it and you must stop the rosy propaganda and come clean with the electorate.

Posted 11:14 PM, 02.03.10

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