LOWVILLE — Belt-tightening in Albany will be reflected in the proposed 2009 Lewis County budget being unveiled this evening.
"We're looking at a tentative budget that's proposed to cut county spending," County Manager David H. Pendergast said. "However, the question now is what will the cumulative effect of the state and federal budgets be on the county. And it's not just us. It's 62 counties."
Mr. Pendergast, also the county budget officer, declined to reveal specifics of the proposal — including spending and tax figures — until it's presented to legislators at their 5 p.m. meeting today in the third-floor courtroom at the new county court facility.
However, he did say that his first budget — developed with County Treasurer and Deputy Budget Officer Vicki A. Roy — is "definitely a responsible financial plan" in tough fiscal times.
This year's $52.4 million budget increased county spending by 8.7 percent over 2007. However, thanks to a similar rise in projected revenues, the tax levy remained stable at $11.59 million.
In light of the governor's enacted and proposed cuts to offset looming deficits, county department heads were advised to expect a 10 percent drop in state-funded programs, said Mr. Pendergast, who was hired in March.
"They've been very cooperative in understanding the huge challenges we have in front of us," he said. "And, much to their credit, they have been responsive to the request of Vicki Roy and myself as budget officials."
Given the gloomy economic forecast, those estimates may need to be pared down even further, Mr. Pendergast said.
While declining to discuss specific proposed cuts, the county manager said he'll recommend a thorough review of contracting agencies — along with contracts running through the first six months of 2009 — in hopes of finding less expensive ways to maintain services.
He's also recommending that county legislators wait to adopt a 2009 budget until after the Nov. 18 special session of the state Legislature, even though they're planning to hold their annual budget hearing nearly a week before that on Nov. 12.
Spending cuts enacted at the special session, the second called this year by Gov. David A. Paterson to address New York's deepening budget crisis, could have a significant impact on next year's budget and may even lead to shortfalls in the current spending plan, Mr. Pendergast said.
The county manager said he began working on his budget address Monday morning.
"Then, I made a mistake and read my e-mails," he said.
One of those e-mails, forwarded by Orleans County's chief administrative officer, included a digital copy of the "Preliminary Analysis of Recent Budget Developments" released Friday by the state Division of the Budget.
In light of the financial problems that have besieged Wall Street in recent weeks, the report forecasts a $1.2 billion deficit for the current fiscal year, which ends March 31. The deficit previously was estimated at $630 million in a budget update released July 30.
"We're reading some very gloomy, but realistic, analysis of the state budget," Mr. Pendergast said. "If all that comes to fruition, it shoots a hole in our budget projections already."
The impact of Friday's $700 billion federal bailout of credit markets on next year's county revenues is also to be determined, he said.
"We haven't seen what they're projecting," Mr. Pendergast said. "Because of the size of the federal government, it will take more time to feel the effects."