Rise In Foreclosures A Driving Force In Fairfax County Operating Budget Squeeze

In Fairfax County, Virginia, The Washington Post reports:

• [A]s with most cities and counties in the region, Fairfax County relies primarily on real estate, car and sales taxes to pay for schools, police, fire protection, parks, libraries and other services. And as in most other communities, Fairfax is just beginning to feel the effects of the regional economy's downward drift. The rise in foreclosures, generated by the subprime mortgage crisis, is a driving force in the county's budget crunch. Reduced interest income resulting from lower federal rates is also a factor. So is a softening in the commercial real estate market because of a glut of empty space and flattening job growth.

For more, see Damage From Downturn May Be Worse Than Expected (Officials Say Rising Foreclosures and Drop in Spending May Force Revision of Feb. 25 Budget Proposal).