Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, March 27, 1991                   TAG: 9103270375
SECTION: VIRGINIA                    PAGE: B-4   EDITION: METRO 
SOURCE: MARK LAYMAN STAFF WRITER
DATELINE:                                 LENGTH: Medium

COUNTY'S BUDGET OUT OF BALANCE

The 1991-1992 budget Hodge gave the supervisors Tuesday was out of balance by nearly $340,000.

However, Hodge has a list of additional cuts that would make up that deficit. And he asked the supervisors to give him any other suggestions they have before their next budget work session, on April 9.

Despite the hard times, the budget is based on a real estate tax rate of $1.13 per $100 of assessed value - a 2-cent reduction. Keeping the tax rate at $1.15 would bring an additional $570,000 in revenue.

The supervisors decided two weeks ago to advertise a tax rate of $1.13. It still could be raised, but it would have to be readvertised.

And Hodge wants the county to keep on stashing away some money.

It is likely the county will have a surplus of $1 million when the budget year ends June 30. Hodge wants to put $300,000 of that aside in case there are additional cuts in state funding.

He wants to use $570,000 for capital projects, including the purchase of two ambulances and a pumper truck for the Fire Department. And he wants to use the rest of the year-end surplus to increase the county's unappropriated fund balance, which now totals $4.3 million.

No county employees will be laid off to balance the budget, but they won't get pay raises, either. "I've been in local government 15 years, and this is the first year that we've not given salary increases of any kind. . . . Not me, not the board, either," Hodge said Tuesday.

The only reduction in services that Hodge has proposed is the elimination of vacuum leaf collection in suburban neighborhoods. "This budget has maintained service levels, but it is at the expense of employees," he said.

The 1991-1992 budget continues funding for a variety of health, social services, cultural and arts organizations, including Total Action Against Poverty ($25,000), Mental Health Services of Roanoke Valley ($69,984), Center in the Square ($15,000), the Roanoke Symphony ($2,500) and the Arts Council ($2,500).

It also includes $46,053, the same amount as this year, to be divided among a dozen local human service agencies, including the League of Older Americans, TRUST and Planned Parenthood. And it includes $71,667 for the Regional Partnership of Roanoke Valley and $25,000 for the Convention and Visitors Bureau.

The county is expecting $3 million in new revenue from taxes and fees in 1991-1992 - down from the $4.5 million in new revenue that was budgeted for the current year.

State funding for the county - notably the Police Department - and its school system will be reduced $2.8 million.

That leaves a net revenue increase of $206,000.

Putting aside his usual optimism, Hodge warned that the worst might still be to come.

He is recommending that his staff do a midyear review of revenues and spending in December so additional budget adjustments can be made.

And, in two weeks, he is planning to give the supervisors revenue projections for the 1992-1993 budget year. "We don't think revenues are going to improve" by then, he said - and that means, when he brings his next budget to the supervisors a year from now, layoffs and reductions in service might be necessary.

There will be a public hearing on the budget April 9 at 7 p.m. at the county administration building. The supervisors are scheduled to set tax rates for 1991-1992 on April 16. And they are scheduled to approve the budget April 23.