On February 2nd, Chaired by Orange County Mayor Rich Crotty, the Board of County Commissioners began its 2011 budget work sessions in earnest. While the meeting was largely for informational purposes, Crotty boasted that the County is mandated to adopt a balanced budget, unlike at the national level, and stressed that tough choices would need to be undertaken.
Ajit Lalchandani, Orange County Administrator, in presenting the budget proposals, informed that, in order to have a balanced budget for fiscal year 2011, a 7 percent cut would be required. He outlined too, the difficult economic environment within which the budget was being prepared, including the 11.8 percent jobless rate in Florida, falling home sales and values, and the significant drop in housing starts–all signs of economic vulnerability.
The gloomy revenue outlook was also highlighted. Noting that the Tourism Development Tax (TDT) had peaked at $168 million in 2008, Lalchandani informed that it had fallen by 15 percent in 2009 and that a decline of 3 percent was anticipated in 2010. Similarly, building permit revenues which in 2006 had generated $20 million was projected to be around $7 million in 2010. Declines too were being projected on property taxes and sales taxes, by 10 and 20 percent, respectively, in fiscal year 2011.
Based on a tax-based operational budget of $878 million in 2010 and a projected decline in overall revenues of $69 million in fiscal year 2011, Lalchandani informed that budget cuts of 7 percent or $70 million were required to close the gap. He proposed to County Commissioners that, the gap could be filled from prior years’ savings–$15 million, Capital Improvement Program adjustments of $15 million and cuts in the operating budget to the tune of $40 million.
Specifically in relation to budget cuts, Lalchandani recommended a 5-day mandatory furlough for Orange County workers, early retirement incentives and cuts in health care benefits and co-pays and to administrative leave, among other measures.
Orange County Commissioners are required to adopt a balanced budget and a series of work sessions are slated to be held in the upcoming weeks and months, with the view to realizing that goal.
Let the wrangling begin!
