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3 <br />2) FY 2011-12 Budget Activity to Date <br />The FY2011-12 Budget process will present another year of challenges and <br />uncertainties. Based on recent news articles and information across our State, the <br />realities of the continued economic recession have affected governments <br />Statewide. Some examples at the County level are as follows: <br />• Forty-nine of One Hundred counties cut their FY2010-11 budgets. <br />• Sixteen counties increased their tax rates to balance their budget. The <br />average tax increase was 3.3 cents. <br />• Twenty-five counties forecasted decreased property valuations <br />At the State level, the following has been published: <br />• A projected budget gap ranging from $2.7 billion (Governor) to $4.7 billion. <br />• The Governor has requested that State Departments prepare budgets with <br />cuts up to 15%. <br />With the uncertainties at the State level, we do not know what, if any, influence this <br />will have on our FY2011-12 Budget. <br />On the revenue side, there has been little growth in the County's tax base this <br />fiscal year. We are anticipating a growth in real property of 1 °to. Additionally, we do <br />not anticipate any substantial growth in the tax base for next fiscal year. Any <br />normal growth in the real property valuation will continue to be offset by continued <br />• decreases in motor vehicle valuations, foreclosures and bankruptcies. <br />In regards to expenditures, departments have continued to experience an increase <br />in demands for services due to the effects of the current economic recession. We <br />will continue to maintain fiscal constraint due to the uncertainty of future federal, <br />state and local revenues. <br />As we prepare the FY2011-12 budget, the economic outlook continues to remain <br />the same this year, but there are some optimistic signs of the economy improving. <br />Although we have seen signs of the economy improving, the positive effects of the <br />potential turn around in the economy have not been consistent, sufficient, or <br />stabilized enough to project in the upcoming budget. Going forward, into the new <br />fiscal year, the outlook is promising and improving, but we need to continue <br />with caution and fiscal restraint. The continued forecast of limited revenues <br />mean the County must critically examine and prioritize services offered. <br />Additionally, the signs of recovery are not readily visible at the local level. Our <br />counterparts throughout the state continue with similar approaches to monitor <br />their current budgets white planning their FY2011-12 budgets. <br />• <br />