Harford County freezes hiring, purchasing as surplus ebbs

December 05, 1990|By Harford County Bureau of The Sun

BEL AIR -- Harford County Executive Eileen M. Rehrmann, saying a recession has left the fiscal cupboard bare, imposed a 30-day freeze on hiring and purchases yesterday and indefinitely delayed plans for a $16 million county office building.

"We're in the big 'R' word now, and we're going to have to deal with the real world the way it is," said Mrs. Rehrmann, who also asked department heads to submit cost-cutting plans.

The executive told a morning news conference that a projected $18 million surplus in this year's budget had evaporated, largely because of a drop in revenue from income and recordation taxes.

"We're going to have to tighten our belts," said Mrs. Rehrmann. "To end the fiscal year at break-even, we'll need [to save] a minimum of $4.5 million, with a goal of $5.9 million."

The new office building, planned for downtown Bel Air, was part of a long-term capital budget adopted by Mrs. Rehrmann's predecessor, Habern W. Freeman Jr.

The new executive said other projects also may be deferred or postponed, but she did not elaborate.

The county currently has an unappropriated fund balance of $1.5 million, but needs one of between $4.5 million and $5.9 million to protect its double-A bond rating assigned by Wall Street rating houses.

If the county does not maintain the required 3 percent to 5 percent fund balance, its bond rating could be downgraded, which would increase the cost of borrowing. money.

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