Tuesday, April 13, 2010

Leggett Recommends New Revenue Writedowns of $168 Million

In a memo today to County Council President Nancy Floreen, County Executive Ike Leggett described the impact of declining income tax revenues on the county budget. According to Leggett, the county expected income tax receipts to increase by one percent in January and February. Instead, the state has informed the county that income tax receipts are down by four percent. As a result, Leggett is recommending that the county write down its revenues by $44 million in FY 2010 (the current fiscal year) and $100 million in FY 2011. Add to that a $24 million writedown last week and the total loss is $168 million over two years. Leggett recommends that the county immediately raise the energy tax and implement an ambulance fee before identifying additional cuts.

We reprint Leggett's memo below.