(6/09) The 2008 Economic Depression has and will continue to have negative impacts on Frederick County residents and our business community. Frederick County Government has had to cut its budget from $476,000,000 in Fiscal Year (FY) 2009 to a proposed $444,000,000 in FY 2010. The capital budget has also been reduced by approximately $12.7 million. During my first term as County Commissioner, local government reductions were necessary in light of a recessed economy in 1991-1992; however, the cuts are much deeper this time around.

The Board of County Commissioners is not proposing a property tax increase for FY 2010. Property taxes amount to the majority of Frederick County’s revenues to the tune of about 57% of total revenues, followed by income tax revenue at 34%, 10% from the FY 2008 fund balance, and 7% from various smaller revenue sources. The real property assessable base, which is the total value of Frederick County’s real property assessments, establishes the base for the Constant Yield Tax Rate calculated by the Maryland State Department of Assessments and Taxation for Frederick County the sum of which will increase in FY 2010 by 5.9%. At the current tax rate of $.936 per $100 of assessment, Frederick County property tax revenues should exceed FY 2009’s by $13.6 million.

In FY 2010, Frederick County Public Schools will receive 51% of the County’s total revenues compared to 30% for departments in county government. Frederick County enjoys education excellence and it the bulwark of Frederick County’s standard of living, but educational costs continue to escalate.

In addition to County funds appropriated for schools and the Community Center in Emmitsburg, the Board of County Commissioners assumed the fiscal responsibility for the Up-County Support Program this past winter and appropriated $115,669 for its operation from January 2009 through June 2009. An appropriation of $195,200 is proposed for FY 2010.

Frederick County Government will continue to work smarter to fulfill the responsibilities of local government, but there may be noticeable service reductions as we trek toward economic recovery.

Volunteerism is always an asset to county governments, but now during a recessed economy, volunteers can minimize the impact of budget reductions by all three levels of government. Opportunities for volunteering on one of Frederick County’s boards and commissions can be viewed on the County website which is www.co.frederick.md.us.

Please do not hesitate to contact me at my office to share comments or anytime I can assist you. I can be reached at 301-600-1101 or my e-mail is dgray@fredco-md.net. Have a safe and happy summertime!