Blacksburg officials recently released a recommended fiscal year 2010-11 budget showing an overall decrease of more than 22 percent compared to 2009-10.
Steve Ross, deputy town manager, said the overall figure could be misleading.
“Just looking at the bottom line numbers isn’t the best indicator of what the budget is about,” Ross said.
The proposed $49.4 million budget, which includes the costs of operating the Blacksburg Police Department, Blacksburg Transit and town construction projects, reflects a reduction in town projects and expenditures.
The Blacksburg Town Council will vote on the budget Tuesday at 7:30 p.m., in the Blacksburg Municipal Building.
In 2009-10, the town of Blacksburg purchased 14 new buses for $5.1 million to extend Blacksburg Transit service to Christiansburg. The town also undertook and completed several multi-million dollar construction projects.
The Blacksburg Motor Company building restoration was a $3.5 million project. Improvements to the farmers market cost $862,000 and the preservation of St. Luke and Odd Fellows Lodge cost $432,000.
Economic conditions have also impacted the town’s budget.
“We’re responding to the economy that we’re all facing right now; that’s affecting our revenue,” Ross said.
The town is expecting a shortfall of $400,000 in state funding, according to the proposed budget. That revenue typically reimburses Blacksburg for highway maintenance and police department expenditures, according to Ross.
As budget documents discuss, Virginia Tech is the largest employer in Blacksburg and is therefore a vital part of the town economy. The 2010-11 town budget proposal anticipates a negative impact from Tech’s expected $20 million state funding reduction.
“As Tech responds to that reduction ... it means early retirement and reductions in personnel, which means there will be less money for people to spend in the community,” Ross said.
According to budget figures, taxes derived from consumer spending are the largest contributor to the town budget. Consumer taxes such as the sales tax, meal tax and telecommunications tax are expected to generate more than $8.3 million in the coming fiscal year. Tax rates would not increase in 2010-11 if the proposed budget were passed.
Even in the face of a decreased budget, there will be minimal impact on the Blacksburg community, according to Ross.
A version of this article appeared in the Apr 23 issue of the Collegiate Times.
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