FY 2012-2014 Budget Forecast
Oct. 26, 2010
Today, at the Fairfax County Board of Supervisors’ Budget Committee Meeting, also attended by the Fairfax County School Board, a financial forecast was given by Deputy County Executive Edward L. Long Jr. While home values are up for the first time in five years, the slides below show that the future of the local economy is uncertain and there remain many challenges ahead.
The economic downturn in this country continues to affect Fairfax County, since the major source of revenue that we receive to provide local services comes from real estate taxes. This multi-year, cyclical downturn is due to a continued weakened economic outlook including contracted job growth, tighter lending standards, reduced consumer spending and declining residential and commercial markets values, in addition to state and federal budget cuts.
The forecast for FY 2012 (which begins July 1, 2011) is consistent with the last couple of years although the county may be seeing some slight improvement. The total General Fund Revenue is projected to be $3.3 billion, or approximately the same as FY 2011, due to a continued stagnant housing market and a decline in the commercial real estate market. A very modest increase in revenue of $78.3 million in revenue combined with increases for goods and services due to population growth and other factors, adds up to the county facing another multimillion dollar projected shortfall.
Fairfax County wants your input on the budget. Submit ideas online and/or take part in our "Do It Yourself" budget kits, where you can gather with a group and talk about the challenges facing our community.