By DAPHNE HUTCHINSON

By DAPHNE HUTCHINSON

Rappahannock Ncwi Staff Writer

If all requests from local agencies and departments are funded as submitted, Rappahannock’s budget for 1980-81 will total $2,756,062—an increase of approximately 17 per cent over the current year’s budget of $2,344,723.

Meeting on Monday morning with accountant Wally Cox in a work session, the supervisors were presented with a problem that has no easy, politically acceptable solution. In order to balance expenditures with revenue, Cox explained, the board basically has only three choices: cut the school budget, raise taxes by 40 per cent or dip into the county’s $193,000 in surplus funds.

Without using any surplus money, the preliminary budget drawn up by Cox requires a tax rate of $5.90 per $100 of assessed valuation, an increase of $1.70 over the current rate of $4.20 per $100.

“We’re going to start the year with approximately $193,000 (in surplus funds),’’ Cox reported, adding that the county could lower the cushion to around $80,000. Depending on how much of the surplus is used to meet next year’s operating expenses, the tax rate for 198081 can be lowered from $5.90 with fewer budget cuts.

With assessed value of locally taxable property - estimated at $16 million, tea cents on the tax rate generates $1,600 in revenue, according to Cox. In the preliminary budget, he noted that taking $75,000 for operating expenses from surplus funds will bring the rate down to $5.40 and leave the surplus balance at $113,000.

Cox reminded the supervisors that this year they will have to set a tax rate which will be effective for two years rather than one. This is necessary, he explained, because state law prohibits the supervisors from raising taxes when a reassessment takes effect. (Rappahannock’s reassessment is currently under way and new rates based on 100 per cent fair market value will be reflected on the 1981 tax bills).

“You’re getting to where you’re behind right now in meeting the operational