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Hillsborough Budget 'Numbers Could Get Progressively Worse'

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By MIKE SALINERO

msalinero@tampatrib.com

Published: February 12, 2009

TAMPA - A declining housing market and mounting home foreclosures could knock a $58 million hole in Hillsborough County's budget next year and cost dozens of county employees their jobs.

That's the best guess of county budget managers who have been sifting through economic data on a worsening economy. They told county commissioners Wednesday that the shortfall could be worse, depending on whether the housing market bottoms out this year or in 2010.

"Nobody has ever experienced what we're experiencing," said county budget director Eric Johnson. "The risk this year is that potentially the numbers could get progressively worse."

County property values dropped by 11 percent to 15 percent in 2008, said county economist Kevin Brickey, citing estimates from the state Revenue Estimating Conference and the Hillsborough property appraiser. Those values will be reflected in property tax bills that go out late this year.

The drop in valuation and slowing sales tax collections translate into a $57.7 million hit to the county treasury in fiscal 2010, which begins Oct. 1.

County Administrator Pat Bean said the gloomy revenue projections assure more layoffs are coming this year. Last year, 100 county employees lost their jobs because of property tax reductions passed by voters and a souring economy. The number of job cuts this year could be just as high, Bean said.

"I expect recommendations to come in from the departments to reduce upper management," Bean said. "That will probably soften the number of positions that need to be eliminated."

Bean has ordered all department heads to submit plans to increase efficiency and cut costs, no matter how small the savings. Similar efforts have saved millions of dollars, Bean said.

Reporter Mike Salinero can be reached at (813) 259-8303.

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