6% Cut Proposed To Close Budget Gap

Prince William County Executive Craig S. Gerhart proposed an $838 million budget yesterday that would reduce services, suspend road construction, freeze salaries and tap reserves to close a $190 million revenue shortfall projected for the upcoming fiscal year.

Prince William faces a major drop in revenue because home values fell 32 percent last year. The county's housing market is expected to plummet further, county officials said.

"We are nearing the bottom, but we don't think we are quite there yet," Gerhart said. "These are going to be lean times."

Gerhart recommended increasing the tax rate from 97 cents to $1.19 per $100 of assessed value. Although the proposed rate is 23 percent higher than the current rate, the average tax bill for a home in Prince William would be 16 percent less because home values have decreased so sharply. The average assessment has fallen to about $240,000, which should yield a saving of about $550, officials said.

Every department budget was slashed to shrink overall spending by 6 percent.

Libraries would stay open, although their hours would be reduced. Pool hours also would be reduced. The Park Authority would increase fees for services and user fees, such as for the use of ballfields. The biggest social service cut was made earlier this month when the Board of County Supervisors decided to close group homes for at-risk youth.

Gerhart would postpone road, park and library projects that have not been started. Planned staffing increases for the police and fire departments would be cut in half, for a saving of more than $10 million.

Salary freezes would save an additional $3.8 million. The county would reduce contributions to 401a retirement accounts. And the county plans to eliminate 155 positions by the end of the next fiscal year.

Prince William also would spend $4.6 million of the $26.2 million it has accumulated in reserve funds to help close the budget shortfall.

Supervisors are scheduled to vote on an advertised tax rate at the board's next meeting, scheduled for March 3. There are signs that there will be agonized deliberation over that decision. Although supervisors can pass a tax rate lower than the one advertised, they cannot, by law, pass one that is higher. So deciding what rate to advertise affects how much flexibility the board has during the budget process.