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Dark budget horizon has Robey eyeing Rainy Day Fund PDF Print E-mail
Thursday, 17 January 2002
 

In 1999, in his first State of County address, Jim Robey spoke _ metaphorically _ about the importance of fixing the roof while the sun is shining. 

Over the next few years, the county executive budgeted money to build eight new schools and a new senior center, to develop a new government campus, to expand Howard Community College and the Howard Transit system, and to modernize a radio network used by police and firefighters. 

Robey carried an umbrella to his fourth State of the County address, delivered Jan. 16 at the Sheraton Columbia. 

He also announced a plan to cut $7.3 million in capital projects, including $4.5 million to resurface roads, $1.8 million for intersection improvements and $1 million for sidewalks, out of the 2002-2003 capital budget. 

"No doubt there will be more projects delayed," he told members of the Howard County Chamber of Commerce, adding that sacrifices will be distributed as fairly and evenly as possible. 

It's possible that the county could dip into its $31.8 million Rainy Day Fund, created to deal with extreme situations, Robey said. But, he warned, "We must not be too quick" to add debt or raise taxes. 

Last year, in anticipation of a national economic slowdown, Robey proposed a budget that he said would take care of basics. His only tax increase was an increase on fees charged to builders and developers. 

Also, early in the fiscal year, he told department heads to develop plans to save up to 10 percent of their budgets, and to leave some positions unfilled. 

The economy worsened swiftly, however, after terrorists hijacked four commercial airliners on Sept. 11. 

Ray Wacks, Robey's budget director, projects the rate of growth in county residents' income will slow by nearly 3 percent in 2002. Capital gains claimed by county residents already have fallen by $200 million annually, to about $150 million, Wacks said. 

For the first time since 1964, Robey said, county income tax revenues could fall year-to-year. 

The result: a $12 million decline in projected income tax revenues in the current fiscal year, contributing to a projected $18 million General Fund deficit. 

So, referring to the county's $31.8 million Rainy Day Fund, which is put aside for extreme situations, he asked himself a question: 

"Is it a rainy day?" 

Not yet, Robey answered, but "maybe the forecast is inevitable." 

County Council members, who got a budget presentation from Wacks Jan. 15, are beginning to grapple with the issue. 

The 2002-2003 budget "is a minus budget" compared with 2001-2002, Wacks said. 

"It may not be less, but it's not going to be more," he added. 

During a monthly work session, council members discussed a proposal to modify the Banneker Room of the George Howard Building in Ellicott City, where many public meetings are held, to better accommodate disabled people. 

But when council Chairman C. Vernon Gray proposed replacing the room's microphones as well, fellow Democrat Mary Lorsung suggested he reconsider. 

"I'm not willing to take the risk," she said, that an optional project could stall an essential one in an uncertain funding climate. 

Later, Allan Kittleman and Chris Merdon, both Republicans, said they intend to submit legislation to strike a proposed $1,200 increase in council members' salaries, which are currently $33,800. 

"If we don't cut ourselves, we don't have the right to tell anyone else to watch their spending," Kittleman said.
 
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