Loudoun Co Projects $251M Budget Shortfall

Not that more evidence was needed, but the bad housing market continues to create havoc on local economies as Loudoun County officials said they are projecting a budget shortfall next year of $251 million.

The announcement came during a briefing of new members of the Board of Supervisors in Leesburg Dec. 12, where county officials said property values in Loudoun are forecasted to drop another nine percent over the next two years. They decreased 10 percent from 2006 to 2007.

It's difficult to overstate the importance of real estate values on the county budget. In the budget approved by supervisors last spring, taxes from real estate accounted for 72 percent of all county revenue, most of which is used to fund school projects and programs. School spending next year is projected to increase 17 percent.

County Budget Manager Ari Sky told supervisors a tax rate of somewhere around $1.24 of $100 of the assessed value would be needed to eliminate such a shortfall. The current rate is 96 cents.

The board will adopt the budget for fiscal year 2009 in early April.

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