Monday, the Cochise county Board of Supervisors met with staff for a final discussion of the county’s general fund budget for Fiscal Year 2009-10.

With revenues in decline across the board, departments were told to cut costs. A hiring freeze for all vacated positions, except for those deemed essential, also was implemented to save a few million dollars in the general fund, said County Administrator Mike Ortega.

The vacancy savings from the hiring freeze and a 10 percent reduction in departmental operations helps make up about $1.7 million.

Thanks to the federal government’s reinstatement of Payment In Lieu of Taxes money for FY 2009-2010 the county will be paid $760,000 for federal lands that lie within the boundaries.

Though the most recent assessment will bring in an $1.3 million more in property taxes, the projected $2 million loss of state sales tax, the $838,000 loss in the one-half-cent sales tax and a 10 percent cut in lottery funds created an uphill battle to balance the budget that could continue into the next year, Ortega said.

“I’m very concerned about what will happen in the 2010-2011 year,” he said. “We need to tighten our belts and hold back where we can. The 10 percent savings for this year was a start, but we may need to look at 15 or 20 percent next year.”

Supervisor Richard Searle again talked about reducing the secondary tax rate for the Library District since $500,000 had built up in the account over the years. He asked that the rate be dropped one cent.

“We’re holding back on everything else, why not reduce it?” Searle asked.

Supervisors Ann English and Pat Call both opposed the tax reduction preferring it to stand through these tough economic times. There’s also the possibility that the state could cut library funding.

English suggested using the money from the library district to pay for a state-mandated information Web site for the courts.

That may not be possible unless the state legislators decide to let local governments raid such funds, Ortega said.

As for property taxes, county residents will be paying more in property taxes even though the supervisors will drop the primary tax rate from $2.6759 per $100 of assessed value to $2.6425 per $100 of assessed value.

The tentative budget as presented will be on the supervisors’ agenda June 30, a late date when the next fiscal year starts July 1.

The supervisors want to be sure there are no more state cut surprises and are holding off to the last minute. The final approval of the budget is scheduled for July 21. On Aug. 17, the county property tax rate is scheduled to be approved. The public hearing date on the budget will be announced.