Fairfax County Outlines Plan to Address FY 2009 Revenue Shortfall
Oct. 14, 2008
Fairfax County impacted by national economic crisis.
Revenue shortfall of approximately $58.2 million projected for the
current fiscal year (FY 2009).
- Action steps include agency budget reductions, cancellation of travel and training, capital project spending reductions, a recommended furlough day, vehicle replacement suspension, and a recommended partial withdrawal from the Revenue Stabilization Fund.
Note to Media: Board of Supervisors Chairman Gerald E. Connolly, Board of Supervisors Vice Chair Sharon Bulova, County Executive Anthony H. Griffin and Deputy County Executive Ed Long will be available to speak with the media today, Oct. 14, from 5-6 p.m. in the Government Center Press Room (Room 158), 12000 Government Center Parkway, Fairfax.
As a result of the national economic crisis that has been evolving over the past several weeks, Fairfax County is facing a projected revenue shortfall of approximately $58.2 million for the current fiscal year (FY 2009), which runs from July 1, 2008, to June 30, 2009. The shortfall, which represents a decrease of 1.75 percent from the FY 2009 Adopted Budget Plan, is based on a review of first quarter data.
Fairfax County, as an AAA rated jurisdiction, has a history of strong financial management and taking the actions necessary to responsibly deal with the realities of the financial situation.
To address the shortfall, County Executive Anthony H. Griffin has outlined a number of steps to maintain a balanced budget, effective immediately:
Agency personnel budgets will be reduced by an additional 2
percent. This reduction, on top of the 4 percent reduction included
in the FY 2009 Adopted Budget Plan, and the 1 percent recently
announced in September, will effectively decrease agency personnel
budgets by 7 percent on top of their traditional vacancy rate. The
vacancy rate varies by agency based on historical turnover but it
averages 3 percent. It is likely that agencies will need to freeze
most if not all unoccupied positions, filling only those most
essential to service requirements.
All non-essential travel and training will be canceled.
All capital equipment spending, not already in the procurement
process, will be eliminated.
All General Fund paydown capital project spending will be
reviewed. A substantial portion of capital projects in the pipeline
may be delayed or terminated.
At least one furlough day for county employees, the first to be
scheduled for Jan. 2, 2009. The furlough day must be approved by the
Board of Supervisors. Essential services in public safety and other
24/7 operations will not be impacted by this furlough.
Vehicle replacements scheduled for FY 2009 have been suspended.
This action, which will delay planned replacement of county vehicles,
including those used in public safety agencies, will provide a one-time
savings by extending the life of these vehicles by one year. Further
replacement deferral will result in increased maintenance costs.
- A recommendation to the Board of Supervisors will be made to consider a partial withdrawal from the County’s Revenue Stabilization Fund. The current Revenue Stabilization Policy permits a withdrawal when General Fund revenue is decreased 1.5 percent from the current estimate. In addition, the policy limits the withdrawal to one half of the reserve and required accompanying spending reductions. The current forecast, as a result of the severe economic downturn, marks the first time these conditions have been met since the creation of the fund in 1999.
In addition to the revised FY 2009 revenue shortfall projections, revenue estimates for FY 2010 (July 1, 2009 to June 30, 2010), also will need to be reexamined and reduced. Fairfax County’s projected deficit for FY 2010 approaches $500 million.
Fairfax County Office of Public Affairs
12000 Government Center Parkway, Suite 551
Fairfax, VA 22035-0065
Contact: Merni Fitzgerald, Director of Public Affairs
703-324-3187, TTY 711, Fax 703-324-2010
Media Pager: 703-324-NEWS (6397)
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