CANTON — St. Lawrence County government's financial squeeze is about reserves.

Legislators and administrators have for months been proclaiming that cost overruns and flat revenues will put the county in a tough spot for planning 2009. Next year's tentative spending plan will be released in about a month, after which a key debate will be about how much lawmakers think is appropriate to keep in reserves for emergencies.

A recent projection showed that the county will have spent $2.8 million more this year than expected. There's money in the budget, however — $7.7 million — to cover that overrun.

The county traditionally has used millions of dollars in reserves as a place setter in annual budgets. This year that amount was $7.7 million. For years, however, the county has not had to dip into that account because of better-than-budgeted revenues. The approach allowed the county to build its reserves to $22 million at the start of this year.

If the $2.8 million projection is accurate — several think it will go as high as $4 million — the reserve fund will dip to less than $20 million. The reserve, known as fund balance, will be a hot topic during fall budget workshops.

"There's probably going to be a lot of debate," said Legislator Donald A. Peck, R-Gouverneur. "Everybody likes to carry over a lot, but in these times, you might not be able to."

He is not alone.

"When times are bad, you let it shrink. That's what it's there for," said Legislature Vice Chairman, Frederick S. Morrill, D-DeKalb.

It's generally agreed upon that the fund balance is used for cash flow shortages that usually occur early in the year and large, one-time expenses. Fear of the unknown has kept conservative lawmakers wanting to keep the fund balance stocked.

"Fund balance should stay the same. It's there for one-time things and emergencies, ideally," said Chairman J. Patrick Turbett, D-Potsdam.