Revenue Stabilization Fund Utilized to Close Budget Gap
March 9, 2009
With Fairfax County facing a $58.2 million shortfall for the current fiscal year (FY 2009), the Board of Supervisors approved today the advertisement of the FY 2009 Third Quarter Review, which includes a withdrawal of $18.7 million from the Revenue Stabilization Fund to close the budget gap.
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.
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.
“The Board of Supervisors had the foresight to create this fund years ago,” said Board of Supervisors Chairman Sharon Bulova. “We now have the opportunity to use it for its intended purpose – to provide assistance during the current fiscal year.”
The Board of Supervisors also approved for advertisement a number of other steps to maintain a balanced budget, including:
- Agency personnel budgets were reduced by an additional 3 percent.
- All non-essential travel and training has been canceled.
- All General Fund paydown capital project spending is being reviewed.
- A furlough day was implemented on Jan. 2, 2009.
- Vehicle replacements scheduled for FY 2009 have been suspended.
Contact: Merni Fitzgerald, Director, Office of Public Affairs
703-324-3189, TTY 711, Media Pager: 703-324-NEWS (6397)
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