Howard County is not immune to the national economic slump, but County Executive Kenneth Ulman promised government would “do more with less” in his annual state of the county address.

“I am pleased to stand before you once again and report that the state of Howard County is still strong,” Ulman said in a speech today. “Over the next 12 months, however, the strength will be tested, perhaps like never before.”

The speech was delivered to about 400 people at a Howard County Chamber of Commerce luncheon at Turf Valley Resort in Ellicott City.

The county could have no revenue growth in 2009 and government departments are preparing two budgets — one with 5 percent cuts and another that keeps spending levels flat, Ulman said.

He acknowledged that keeping spending “flat” would still require some cost trimming.

Income tax revenue is expected to go down this year for only the second time since 1964 and fees from the recordation and transfer tax are down 40 percent from their peak three years ago, Ulman said. In addition, residential property assessments for the one-third of the county that was recently reassessed are down roughly 7 percent.

With the state facing a roughly $1.9 billion budget shortfall and 40 percent of state money going to local governments, Howard County is bracing for less money this year, Ulman said. Much of that state funding goes to education and it is “unlikely” the county will be spared from cuts, he said.

The county executive said Howard has done a few things that have put it in a better position than other jurisdictions.

He credited the county’s adequate public facilities law and housing allocation credit system with controlling growth and the housing bubble in Howard County. The county also was careful about taking on excess debt and has been fiscally prudent, he said.

Although he painted a dour picture of the coming county budget season, Ulman said the county would do more with less as it deals with increasing demand for services. The county has seen enrollment double at Howard Community College, more people using libraries and increased demand for eviction prevention assistance and help with paying energy bills.

“To be sure, we are facing difficult decisions ahead,” Ulman said. “But now, more than ever, we cannot shirk from our responsibilities to each other and our community.”

The county executive said his administration has trimmed millions from the county budget by pursuing cost savings, such as reducing the number of take home cars, improving technology and renovating the Howard government building rather than building a new office complex.

Among the successes he cited from the previous year were working with the state to save commuter bus service to Baltimore, steering roughly 1,000 county residents into already available forms of health insurance while offering enrollment in the county’s Healthy Howard Access Plan and developing green building requirements for some new construction.

Looking to the future, Ulman said the county is getting closer to agreeing on a vision for the redevelopment of downtown Columbia. He said the financial troubles of General Growth Properties, the company redeveloping downtown, should not stand in the way of the county approving a vision for the area.

“I am troubled by the false notion that because there are unknowns about the economy and General Growth’s future, we should put the planning process on hold,” he said. “I could not disagree more.”

He also said the county plans to make “long-needed improvements” to address the lack of parking in downtown Ellicott City and said the renovation of the historic Ellicott City post office building would be slowed, but not stalled, by the poor economy.

County Council vice chairwoman Jennifer Terrasa said Ulman did a good at job of explaining the financial challenges facing the county.

"He knows we're going to have to make cuts and we'll take a close look at that," she said.

The county executive’s remarks will be aired on GTV, which is Comcast Channel 99 or Verizon Channel 44.

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