The next few weeks for local government entities will be difficult as they complete their budgets for their next fiscal year based on the July 1 property tax value report from the Osceola County Appraiser’s office.

Property values have been finalized more or less and the news, while not as bad as expected, isn’t good: Property values for the county dropped about another 15.7 percent after about a 19 percent drop last year. Taxable value within the city of Kissimmee dropped 22.7 percent while the value drop for the Osceola County School District was about 15.6 percent. According to the property appraiser, commercial property saw the largest fall-off, with continued weakness in residential property as well.

Elected officials now will have to decide how to balance their respective budgets, whether by cutting programs or employees or by raising millage rates. Neither choice will be easy. And any cutting must be done with an eye focused two or three years – or more – down the road. Certain cuts that must be enacted this year may not be sustainable over the long run.

Osceola County commissioners recently agreed to a two-week furlough for county staff for the 2010-11 fiscal year, which is fair enough; such a cut would amount to about 3.8 percent less pay. Managers and salaried staff will be taking 10 working days off spread throughout the fiscal year, which starts Oct. 1, while hourly workers will take pay cuts, with less in their checks each pay period.

The furlough likely will pinch lower level county workers hardest since they have the least flexibility in their own personal budgets in terms of being able to live with less. We encourage unionized personnel, including firefighters, to also agree to the two-week furlough or a corresponding pay cut.

Many county employees – like their counterparts in the private sector – also will see a change in their benefits, including health insurance, as a way to deal with cost increases.

We all have had to tighten our belts the last few years and local governments are doing the same. There will be numerous budget workshops and meetings in the coming weeks and months where final budgets and millage rates will be set. We encourage taxpayers to attend those gatherings if possible.