Loudoun County (web|news) is facing a budget deficit of $176 million for the 2010 fiscal year, according to the county's administrator.

Kirby Bowers described the shortfall to the Board of Supervisors' finance-government services and operations committee on Wednesday.

"I wish I had better news for you, but we are experiencing something that's no different than all the other jurisdictions in the region," Bowers said. He is projecting a $176 million deficit caused by a revenue shortfall of $97 million and a $79 million increase in expenditures.

The nation's economic slowdown is affecting governments around the Washington area. Last week, Maryland officials said they were facing a budget shortfall of $432 million, while Virginia Gov. Tim Kaine's administration has told agencies to gird for budget cuts of as much as 15 percent.

Fairfax County (web|news) is looking at a $430 million shortfall. Prince George's County on Tuesday approved a two-week, unpaid furlough for 6,000 county employees. Montgomery County (web|news) also is considering a furlough to reduce spending.

Falling home values are affecting Loudoun's revenues, and Bowers projected property values would decline as much as $60 million for 2010.

The biggest cost increases are in education. They include $8 million for health insurance and $47 million to cover a projected influx of 3,556 students, Bowers said.

"We knew it was coming, and we're going to have to adjust to it," said Supervisor Jim Burton. "It's time for us to get serious about adjusting to it. (We'd) be sticking our heads in the sand if we try to take an interim, short-term look at things in the hopes that things will get better a year from now."

He urged supervisors to look at services that could be reduced or eliminated.

"Tough times call for tough choices, and I'm not looking forward to the overall budget," said chairman Scott York, calling last year's budget a "piece of cake" compared with what the board faces this year.

Susan Klimek Buckley said Bowers' presentation was "very grim news."

"I'm sad that it has to be a calamity of this nature, but I agree with the sentiment that we have to think outside the box," said Eugene Delgaudio. He suggested that the board find out what nearby jurisdictions have done to save money.


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Information from: The Washington Examiner.