Chesterfield braces for tough budget decisions

Chesterfield County is bracing for a projected $38 million budget shortfall in the next fiscal year, and tough times in the interim because of state budget reductions.

The county's fiscal 2011 general fund projection was $717.2 million -- up $2 million from the current fiscal year. Schools were projected to receive $618.4 million, down from an already tight $623.5 million in the current plan.

But at a joint meeting between the county's Board of Supervisors and the School Board yesterday, Budget Director Allan Carmody said those figures were too optimistic.

He now foresees a $20 million revenue shortfall "due to losses in state revenue, property taxes and sales taxes, to name a few," and an additional $18 million in new needs and expenditures, he said.

"It's going to be tight, and not just for county government, but [also] for the school system," said Board of Supervisors Chairman A.S. "Art" Warren, noting that federal stimulus money will help slightly. "We're just going to have to tighten our belts and make sure we're very fiscally responsible."

After seeing the new numbers yesterday, School Board member U. Omarh Rajah said: "There's no way we can cut any more personnel out of the classroom. We have some major problems." In Chesterfield this spring, 69 employees were laid off, including teachers, because of budget cuts. Some were rehired.

But School Board Chairman Marshall W. Trammell Jr. wouldn't say that no personnel cuts will be necessary. "I'm not sure what we're going to do," he said.

Of Richmond and its neighboring counties, Chesterfield is the first locality to publicly discuss new budget projections for the next fiscal year based on the state budget shortfall.

The county also faces short-term challenges resulting from state reductions announced last week by Gov. Timothy M. Kaine to close a $1.35 billion revenue shortfall for the current fiscal year.

Carmody said that will mean a nearly $4 million hit for the county to include:

• a $2.1 million reduction for education from state sales tax;

• a $784,000 reduction for constitutional office funding; and

• a $591,000 reduction in police funding.

"The governor's proposal will not only impact the current year, but looks to impact the 2011 budget as well," Carmody said.

For the current fiscal year, Chesterfield had one of the largest overall budget reductions of the state's largest localities. It was 4.1 percent, shrinking from $1.28 billion in fiscal 2009 to $1.23 billion this year. The fiscal year began July 1.

Many others offset reductions in part by increasing the real estate tax rate. Chesterfield leaders held the county's at 95 cents.

Supervisor Daniel A. Gecker suggested the tax-rate discussion would be a more important one this year given the dreary forecast.

"Our board has certainly been reluctant to talk about rate increases," he said. "But once we set the maximum advertised rate, the rest of this is academic."

Across-the-board cuts, which historically have been the county's answer, serve only to weaken all programs and services, Gecker added.

"Those things we can't do first-class, I think we ought to eliminate, quite frankly," he said.

Contact Wesley P. Hester at (804) 649-6976 or .