Howard County's $48 million, never-been-touched rainy-day fund could be on the table this year as officials try to build a fiscal 2011 budget with strained resources and limited revenue streams.

Depending on funding levels and potential program cuts, the reserve could be tapped for the first time, budget administrator Raymond Wacks said this week.

"A lot's going to depend on what happens with the state as the next couple of months develop, how good the economy gets and what we think our revenues are going to be," he said after a meeting of the county's spending affordability committee Jan. 14.

"I mean, do we want to jeopardize police services or education services? Those are tough questions."

The 19-member group of citizen advisers and government officials began meeting to discuss the county's fiscal health and will make recommendations on debt and spending levels for the next fiscal year, which begins July 1.

They will meet over several weeks and eventually issue a report, which will be considered by the county executive and council.

Last week's meeting featured a presentation from Baltimore economist Anirban Basu, who told committee members that while he expects Howard County to see a boon in jobs and personal incomes in fiscal years 2012 and 2013, the coming year will be difficult.

Those jobs will likely stem from an increase in employment at nearby Fort Meade and the growing cyber-security industry, Basu said.

However, Howard County officials will need to be extremely conservative in mapping out the upcoming budget, Basu said.

Decreases in tax revenues, coupled with a $2 billion shortfall at the state level and responsibility for local jurisdictions to fund retiree benefits, are likely to make balancing this year's county budget an arduous task, he said.

"That's what this committee is all about," he said. "Trying to understand what this looks like, what cutting looks like in a Howard County context."

The county's current general fund operating budget is just over $800 million -- the sixth largest in Maryland.

During the meeting Basu also encouraged the county to consider beginning major renovation projects because construction costs are low and will increase as the economy improves.

The committee is scheduled to meet again Jan. 21, when they will discuss details of short-term revenue projections.

In closing last week's meeting, Wacks warned the committee that there will be little or no new revenue growth and they would likely wrestle with determining which requested expenditures would be left without funds.

user comments (4)

user patdornan says...

"Howard County officials will need to be excessively conservative in solidifying the upcoming budget, Basu said." Not possible with liberals running our government. That being said, the Rainy Day Fund is for circumstances such as this recession. Cuts must come, starting with eliminating the waste of a bus service (Howard Area Transit, or whatever it calls itself), and reducing the huge number of in-service days that the schools get.

Posted 6:38 AM, 01.15.10 | Permalink

user independent says...

Basu also said to borrow as much as possible regarding the Maryland budget. That is extremely irresponsible. See Baltimore Sun today.

Posted 8:37 AM, 01.15.10 | Permalink

user independent says...

That was regarding the Howard County budget: http://www.baltimoresun.com/news/maryland/howard/bal-howard-economy0114,0,567205.story

Posted 8:40 AM, 01.15.10 | Permalink

user says...

If you consider "eliminating the waste of a bus service" then you must be considering the elimination of hundreds or perhaps thousands of jobs. The many folks who depend on Howard Transit so they can get to the jobs that make life easier, faster and convenient for residents of Howard County. Add to that the many Seniors and disabled and others without vehicles or unable to drive and their trips to necessary medical, social service and other appointments...add in some of those who are employed where these folks travel to who also lmay then lose their jobs as a result now of insufficient clientle. Also add in the bus operators themselves as well as the students who use Howard Transit to access college, high school and middle school. Job lost alone...folks going on the Unemployment Comp roles might exceed expenditures from local sources for Howard Transit (plus no taxes from these folks). Then the social costs of ignored Seniors and disabled folks as well as marginalized students whose parents can't afford to buy them a new BMW equipped with a Master Card. And then, of course if gas prices jump again the result of some Middle East or Iranian crisis and demand for transit surges again...what will we folks ride on? Or, God forbid, this area with its defense and National government facilities becomes a target for fanatic terrorists and there is a need to evacuate folks...the schoolbuses will be carrying students and "you can never get a cab..." . How will they be evacuated?....maybe we can land the Lockheed C-5 Galaxies on I-95 or MD 100...except those roads might be parking lots full of fleeing people. Nothing like a local bus driver who knows the back roads. Perhaps if more people were part of the solution to the energy and environmental woes we face (in other words riding buses) instead of being part of the problem, they would see all the utilitarian and necessary trip purposes which Howard Transit carries out seven days a week, 365 days a year.

Posted 9:39 AM, 01.19.10 | Permalink