With the onset of a new year, local governments across the commonwealth are faced with the tedious task of budgeting for yet another new beginning -- the upcoming fiscal year. And beyond that, localities are going to have to brace for the following fiscal year in 2010-11 -- particularly when it comes to public education.

In what are troubled economic times, Gov. Tim Kaine's announced possible heavy cuts to public education funding two weeks ago as part of his plan to address a $2.9 billion shortfall.

Under Kaine's proposal localities will be forced to deal with cuts not only next fiscal year, but the following fiscal year, 2010-11, during which the largest reductions are expected to occur. State legislators will consider the budget when the General Assembly convenes later this month.

Localities may be forced to pick up more of the tab for educating students at a time when many areas are seeing flat and even decreasing local revenue because of a slowdown in growth.

Mike Edwards, an official from the Virginia Association of Counties, said the governor's proposed cuts to public education funding average 8 percent to 9 percent across the state but will affect each locality differently. Governing bodies are likely to be doing the same things over the coming months: exploring strategic ways to either absorb the costs or generate additional revenue to cover the cuts.

"I can tell you that there will be a significant number of localities this spring that will have to raise the real property tax rate to adequately fund education," Edwards said.

It is a waiting game to find out which localities raise tax rates and by what amounts.

Raising taxes usually is not embraced widely, but it is even less likely to be received favorably given the current economic climate, the real estate market and the number of layoffs the Roanoke region has seen. That is on top of localities -- not just school systems -- receiving reductions in state aid.

"If it wasn't for the school cuts, we could get through it. Not easily, but we could get through it," said Botetourt County Administrator Jerry Burgess.

He is hoping to reduce the county's budget, but the final decision will be up to the county's board of supervisors. Burgess acknowledged the possibility of dipping into reserves instead of raising real estate taxes.

"It doesn't help us because spending reserves to operate keeps us from starting new initiatives," Burgess said.

Botetourt County had $21.7 million in reserves as of June 30.

In the meantime the Virginia Education Association is responding to the proposed cuts in two very distinct ways.

"We are asking local associations to work with superintendents and school boards to find ways to absorb the cuts without damaging the classroom. At the same time we are trying to keep the cuts from being severe as the governor proposed," said association spokesman William Johnson.

Numbers released this week from the state Department of Education estimate funding to Roanoke's public schools will be reduced by nearly $5 million between the upcoming fiscal year and fiscal year 2010-11. Governmental fiscal years in Virginia run from July 1 to June 30.

Roanoke School Board Chairman David Carson said while cuts were expected, the level of the reduction is disappointing.

"We have got a lot of momentum in Roanoke city right now and we intend to continue it. But this is definitely going to put a damper on our programs and initiatives," he said.

Roanoke City Council two years ago adjusted its formula to give more funding to the school division, up to a maximum of $2.5 million in new revenue if it is available, Carson said.

"I think in many ways they [members of city council] are in the same boat as us," he said. "They kind of know everyone is tightening their belts and they are waiting to see how that plays out."

Last year the Bedford County School Board approached the county's board of supervisors for an additional $3 million, mostly to fund raises for teachers. The supervisors approved only an additional $1.25 million, which came from splitting new revenue with the school division. Continuing that contribution this year may be hard because the county is seeing fewer real estate transactions and building permits, said board of supervisors chairman Steve Arrington.

"It's not the same budget process we have had in the past," he said. "We are not going to have the luxury to entertain new funding for this, that and the other.

"I don't think the sky is falling, but I do think we have to do things differently."