Real estate values plunge again

That clunk on the floor was the sound of the other shoe dropping.

For the past three years, residential real estate values have been declining, said Property Appraiser Raymond McIntyre. This year, he expects commercial property and unimproved land prices will fall as well.

"We're going to be down 10 or 12 percent," McIntyre said Tuesday. "That's a projection, of course."

In real dollars, said Budget Manager Tim Mechling, that's about $4 million. The number may grow larger when other revenue sources are added, like sales and gasoline taxes.

"It could be $5 or $6 million before we get done," said Commissioner Guy Maxcy.

The Highlands County Office of Management and Budget is already preparing the 2010-11 budget, Mechling said.

It doesn't look good. Last year, the county commissioners had to chop $15 million. The result was the merger of housing and human services, the layoff of seven people, and cuts from every department. To balance the budget, the county had to spend $6.7 million of its rainy day fund.

For weeks, commissioners argued and struggled with each other. Tempers grew short. Harsh words were exchanged on the dais.

"It was very painful up there," Maxcy said. In March, they'll start all over again.

"We may have to cut hours at the library. That's something I wouldn't be for, but I'm sure that idea will be brought up. We may have to close early at the landfill. We may have to cut our contributions to ARC or NuHope," Maxcy said. "We may have to lay people off again. People are going to be torn apart financially. But if that's something we have to do, we have to do it. People elected us to make the hard decisions."

Could one of those decisions include a tax increase?

"Absolutely not. How can you do that people?" Maxcy declared.