By MARY K. BLEWITT

By MARY K. BLEWITT

Arundel Newspapers Staff Writer

Northern Virginia localities are guarding their coffers as the state grapples with drooping revenues.

Paul W. Timmerick, state secretary of finance, related to Virginia’s money committees last week that the state budget shortfall is expected to exceed $1 billion over the next three fiscal years.

State tax collections for 1990 fell $151 million below expectations in the final weeks of the fiscal year ending June 30. The latest shortcoming followed two earlier revenue reductions for the year, in December and February, totaling $248 million.

As a result, local and state officials are concerned that funds earmarked for localities will be the target of further budget slicing.

Gov. Wilder already has requested that local agencies receiving state funds submit proposals for one, three-, and five-percent budget reductions for fiscal year 1990.

Vulnerable, too, is the portion of the recordation tax earmarked for localities’ education and transportation needs.

The 1989 General Assembly authorized the return of $40 million a year to localities based on the recordation tax collections. Due to the state revenue shortfalls, former governor Gerald L. Baliles and Wilder recommended keeping the $40 million in the state pocket for the 199092 biennium. The 1990 General Assembly opted to return $60 million for the biennium.

Northern Virginia stands to receive close to half of the returns. Some members of the state money committees have suggested eliminating the recordation tax returns to local governments.

“They’ve been after that money since we started to give that money back to localities,” said Del. Leslie L. Byrne, D-Fairfax, a member of the House Finance Committee.

“Basically they penalize those that haven’t already spent it (the money),” she said.