Dear Fellow Staff Members,

 

As we hear additional details about the Governorís budget decisions and get more solid information about other revenues sources, we are developing a clearer sense of what our financial situation looks like for the current fiscal year.  Although there are still some unknowns, such as the full extent of State budget reductions, I did want to share this updated information with you so that you are aware that we are facing a shortfall of some magnitude at this point in time.

 

While we only have two months of data on hand to use for our June 30, 2010 end of the year revenue estimates, we are currently estimating a General Fund shortfall of approximately $4.74 million or 2.2%.  Based on our current revenue allocation policies, including the 60/40 split of new local tax revenues with the School System and the capital funding formula, this shortfall will result in $2.66 million less for schools, $1.77 million less for local government and about $0.3 million less for capital.  The shortfall can primarily be attributed to Property Taxes, Other Local Taxes (e.g. sales tax, etc.) and State funding reductions.

 

Because of the continued decline in revenues, which is beyond what we and virtually all other Virginia localities and the State were anticipating during our last budget process, we find ourselves facing a shortfall.  As you remember, we have already adopted aggressive and substantial budget reduction strategies for this yearís budget including:

 

 

We will have to go beyond the measures above to address our current shortfall, including evaluating options like using the contingency funds that the Board had set aside for revenue shortfall for the current year and expanding the hiring freeze and staffing reallocation process.  We will be presenting our plan for responding to the shortfall to the Board of Supervisors at their October 7th Board meeting, and I will be sharing that information with you also at that time.  While this information is sobering and concerning, I want to reiterate that our approach remains focused on protecting our workforce and keeping layoffs as a last possibility.   I appreciate your continued dedication to our organization and our citizens, and Iím extremely proud of the effort that everyone in county government is making to help us get through this difficult period.

 

Sincerely,

 

Robert W. Tucker, Jr.

County Executive

 

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