When it comes to the county general fund budget, there might need to be a little give and take.
Howard County departments “have put in everything they would like to see, and now we have to sit down and see what we can afford,” Budget Administrator Ron Weinstein said, adding much depends on the priorities of County Executive Ken Ulman.
In the county department?s requests for the fiscal year 2008 budget released Thursday, spending for most projects is up ? for one program nearly 180 percent ? but some revenue sources have dipped. New priorities have county officials facing tough challenges.
Ulman addressed the upcoming spending struggle recently in his state of the county address.
“The budget is where the challenge of balancing competing interests hits hard,” Ulman said.
For example, community service departments are requesting boosts in funding for library services, mental health authority and the health department.
It?s too early to get into the details of the requests, Weinstein said.
The general fund budget will be delivered to the County Council on April 20. Between now and then, the spending details will be hashed out, he said.
A key revenue source, the recordation tax, fell nearly 25 percent because of a slowed housing market.
The recordation tax is a fee for recording the lien during a sale or refinancing. Although other sources are up, such as income on investments, the county will have to find ways to make up the loss, Weinstein said.
One challenge is a new federal standard that requires jurisdictions show they are funding retiree health benefits. This liability is estimated to cost the county $53 million each year, $13 million of which is accounted for.
For fiscal 2008, the county has earmarked $10 million for the fund. Weinstein said this was a placeholder, and the number could change.
“To say this changes things financially is an understatement,” Ulman said.
BY THE NUMBERS
» FY08 General Fund Budget requested: $821.8 million
» FY07 General Fund Budget approved: $734.2 million
» Percent difference: 11.9
» General Fund revenue
FY08 projected: $768 million
» Change over FY07: 7.7 percent
» Recordation Tax revenue
FY08 projected: $19.5 million
» Change over FY07: -25 percent
Source: Howard County Government
