New Tax Rate Would Cut Payment for Homeowners

Supervisors Approve Budget Guidance

Prince William County supervisors unanimously approved budget guidance Tuesday that would amount to a $600 tax cut for the average homeowner.

The board called for county staff to prepare a budget with a tax rate of $1.13 per $100 of assessed value. Although that is an increase from the current rate of 97 cents, the average homeowner's bill would decrease 18 percent because home values have plummeted.

The measure is meant as a starting point for budget discussion. Supervisors won't authorize a tax rate until March.

Supervisors approved the guidance with none of the agonized deliberation seen over the same decision last year, a sign of the stark budget reality the county faces.

"At a time when citizens are forced to tighten their belts and cut their own expenses, county government should be doing the same thing," said Chairman Corey A. Stewart (R-At Large). "The board will commit itself to reducing the tax burden on Prince William County residents."

Although the $1.13 tax rate would help close an anticipated $190 million shortfall in the upcoming budget year, the county would still have to cut $26 million from its budget.

Home sales have surged in Prince William, but the county faces hard economic times because home values have decreased 30 percent in the past year. Supervisors grasped the county's dire financial situation, agreeing to approve the budget guidance a month earlier than usual.

"We welcome the early attention of the board," County Executive Craig S. Gerhart said.

In March, half the board resorted to a little-used law to request an emergency meeting to decide what real estate tax rate the board should advertise. The board had been at a stalemate for more than three weeks over what is usually a routine matter and the first step in budget discussions.

In the fiscal 2010 budget, which begins July 1, there probably won't be increases in police and fire department staffing, and capital improvement and road projects are likely to be eliminated, according to budget analysis from the county executive's office.

"Times are hard here," Supervisor John D. Jenkins (D-Neabsco) said. "Everything is on the table."