Frederick County commissioners began budget talks for 2010 on Tuesday under a darkening cloud of tough economic conditions.
Like countless jurisdictions across the country, talk of cutting programs, delaying projects and furloughing employees for a day dominated the discussion.
"It's a perfect storm from a budget standpoint," said Michael Gastley, the county's budget officer. "Everything bad that could have happened, happened. … We knew this day was coming, and it's here."
Gastley unveiled preliminary numbers for fiscal 2010, which starts July 1, even as commissioners continue to deal with a $7 million shortfall in the $476 million fiscal 2009 budget.
Commissioners have imposed a hiring freeze to deal with this year's gap, and will discuss it next on Dec. 4.
Numbers for 2010 show that as economic conditions worsen, finding money for the county's departments, agencies, services and operations will be difficult.
Preliminary numbers already show little or no money for pay raises and cost-of-living increases.
Revenue for 2010 is estimated to be $453 million, a sharp decline from this year.
Money collected from property taxes is expected to increase by 5.5 percent, but income tax revenue is slated to stay the same as fiscal 2009.
Recordation taxes, which are levied on the sale of homes, are projected to decrease by $3.2 million, which staff said reflects the stagnating housing market.
Expenditures for 2010 started Tuesday at $501 million, an increase of $24 million, or 5.1 percent over this year. But commissioners offered suggestions for budget cuts that could reduce that number.
Much of the discussion was on having county employees take a day off without pay, which would save the county $625,000, Gastley said.
County Manager Ronald Hart suggested that departments schedule furlough days over a six-month period, so that essential personnel (such as police and fire and rescue) have coverage.
Mitch Hose, personnel director, informed the board that he has already discussed the issue with division directors.
County employees would not be alone in taking a furloughed day.
To deal with a $400,000 reduction in state funding, Frederick Community College has ordered its employees to take off one day without pay, saving up to $85,000, said Carol Eaton, the college's president.
Commissioners also discussed the maximum amount of money county departments can request from commissioners for next year. With sluggish economic conditions, the board is asking county departments to keep costs down.
They want department heads to calculate how they could operate by reducing their budgets by 3 percent and 5 percent.
"This is a good time to see how we organize," said Commissioner David P. Gray (R). "Do we have positions that just don't work anymore?"
Finally, Commissioner John "Lennie" Thompson Jr. (R) is again this year asking that they cut all financial aid to non-county agencies and nonprofits.
Hart suggested that if county employees are being asked to furlough a day, money to nonprofits should be reviewed.
But Board President Jan H. Gardner (D) and Commissioner Kai J. Hagen (D) disagreed.
They argued that these agencies are needed more than ever during these tough economic times.
Commissioners are scheduled to again discuss the 2010 budget in January.