Frederick County commissioners are considering a yearlong freeze on construction projects to help bridge a projected $28 million shortfall next year.
Commissioners began budget talks for fiscal 2011 on Tuesday, and cutting programs, delaying projects and furloughing employees dominated the discussion.
With revenues for 2011 projected to be $427.7 million, $3.3 million less than the current fiscal year, finding money for the county's departments, agencies, services and operations will be difficult.
Rising unemployment will also impact income tax revenue from the state. It is projected to drop from $150.9 million in fiscal 2010, to $147.9 million next year.
"We've got to get $28 million somehow," County Manager Ronald Hart told commissioners on Tuesday. "I think we ought to do something as soon as possible."
Commissioners were dealt a dismal forecast from budget officials, who warned that the state's lingering financial woes will continue to impact the county next year.
Of the projected $28 million shortfall, $20 million stems from cuts in state aid, said Michael Gastley, the county's budget officer.
Cuts, along with state mandates to provide funding for schools, elections and libraries, only worsen the financial picture.
"It's certainly a contributing factor as to why we're having trouble at the local level," Gastley said. "The outlook at the local level is not particularly rosy at least for the next couple of years."
Commissioners' President Jan H. Gardner (D) took issue with the state. "People cannot continue to cut our budget and ask us to pay more," she said.
Commissioners batted around a host of ideas to find the $28 million, including a freeze on construction projects, though it was not immediately clear if such a freeze would affect projects already under way or just those in the design stage.
Commissioner Charles A. Jenkins (R) moved to institute a freeze next year, but his board colleagues opted to wait until Gastley determines how the move would impact ongoing projects.
"I don't believe it's possible without an impact," Gastley said.
Frederick County school officials did not seem surprised by the possibility that school projects could be frozen.
If commissioners vote for such a freeze, it won't affect school construction projects already under way, such as Linganore High School or the renovation of West Frederick Middle School.
But a freeze will push back projects still in the planning and design stages.
If approved, the freeze would immediately affect Lincoln and Oakdale elementaries, which were scheduled to receive construction funding in fiscal 2011.
The 86-year-old Lincoln Elementary has open-floor classrooms, no sprinklers, no smoke detectors, and no elevators, and was scheduled for a major modernization.
There will also be a delay for the addition to Oakdale Elementary, which was supposed to help relieve overcrowding at Centerville Elementary.
"I am not surprised. I understand why they will be doing it too," said schools Superintendent Linda Burgee. "It is a domino effect."
Jean Smith, school board president, expressed a similar sentiment, and said the school board also faces budget challenges. The school system expects a $9 million shortage to its base budget of $497 million, and that shortage may grow if the state moves ahead with another $6 million cut.
Both Smith and Burgee said school officials will also make cuts to their operating budget and everything from salaries to programs will be under consideration.
"[The freeze] is not more unpleasant than what we will have to do to our budget this year," Smith said.
Commissioners told Gastley that a freeze on capital projects was the direction they wanted to go.
Hart also suggested they cut the funding for 40 county employees working at the Frederick County Department of Social Services. The Department of Social Services is a state agency that employees mostly state-paid workers.
The 40 county positions total between $1.2 million and $1.3 million.
Commissioner John "Lennie" Thompson Jr. (R) was ready to make a slew of cuts to raise the $28 million.
But Gardner countered that some of Thompson's cuts for example, to the Board of Education and Frederick Community College are not feasible.
"I want to make thoughtful cuts and minimize the pain as much as possible," Gardner said.
Commissioners will begin budget talks with county agencies and departments in January.
Staff Writer Margarita Raycheva contributed to this report.
E-mail Sherry Greenfield at sgreenfield@gazette.net