Fairfax County (web|news) is facing serious budget woes, after being hit by three major blows over the past year: property values and revenue from sales tax are down, while fuel costs are way up.

"No matter how good we are at managing budgets, after a while, lack of revenue causes problems," said Anthony Griffin, Fairfax County Executive.

So Fairfax County, one of the wealthiest in the nation, is bracing for a projected $430 million shortfall. That money would have covered everything from schools and parks to the police force.

Now, it looks like property tax rates will climb to offset a reduction in home values.

Fairfax County resident Jim Coleman said, "Everyobdy's going to feel an increase when the property values go back up, if they're raising the rates now."

Some supervisors believe even a ten-cent increase in real estate tax rates will go unnoticed by homeowners since values have dropped so sharply. But even if such an increase is imposed, the money generated would cover only half the projected budget shortfall.

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