Fed's Interest Rate Cuts Add To Counties' Budget Strain

Fairfax County Executive Anthony H. Griffin said he has a plan for dealing with the investment income loss but declined to discuss it before his presentation to the Board of Supervisors.

The budget will be the most difficult and politically sensitive that Griffin has had to construct in his eight-year tenure, most of which has been marked by a windfall in property tax revenue from a booming housing market. But residential assessments have declined an estimated 4.5 percent this year, and growth in spending on public safety, schools and social services is expected to be seriously pinched.

The budget rollout also coincides with the launch of Connolly's campaign for the Democratic nomination in Virginia's 11th Congressional District. It means that his positions on tax and spending issues will receive added scrutiny.

County officials said last week that Griffin's presentation will be a two-step designed to ease political pressures on board members in the tough economic environment. Instead of proposing a budget with a tax rate increase, he will present a spending plan based on retaining the current rate of 89 cents for each $100 of assessed value. But Griffin is then expected to recommend that the board advertise for public hearings on a somewhat larger rate.

It means that supervisors won't be faced with the politically unpalatable task of cutting programs but will still have the option of increasing spending in areas such as education and code enforcement.

Griffin is also expected to propose some reorganization of county government to increase savings and efficiency. This includes creating an Office of Building Code Enforcement that will bring the county's various property and construction inspection functions, now spread across multiple agencies, under one roof.

Staff writers Ann E. Marimow and Kristen Mack contributed to this report.