Alexandria’s previously estimated $10.5 million budget shortfall for the current fiscal year is continuing to grow. Even with the projected real estate revenue loses being lower than expected, other revenue projections have not followed suit.
Reasons for the growing budget shortfall include a 50% decline in business licenses, as well as the cities 324 foreclosures so far this year. Alexandria also owes Fairfax County around $1 million in sales tax and real estate tax settlement refunds. The forecast for the 2010 budget is equally troubling. Revenue projects for the 2010 fiscal year (beginning July 1), are around $35 million less than previously projected.
$6.1 million in spending cuts are currently being implemented. Is this budget shortfall for both the current fiscal year and the 2010 budget a sign of tax hikes on the horizon?