CHRISTIANSBURG -- The Montgomery County Board of Supervisors will advertise a 2009 real estate tax rate at 75 cents for every $100 of assessed property value, despite some supervisors' concerns that the rate is too high.

The board voted 4-3 Monday night to advertise it with the understanding that the board could lower the rate, but not raise it, if need be.

The rate was recommended by County Administrator Clay Goodman and the county's finance staff to fund the $159.4 million budget proposed for 2008-09.

The advertised real estate tax rate is 12 cents higher than this year's rate, and that money would go toward schools, public safety and debt services. Some supervisors expect to hear complaints about the increase at a public hearing scheduled for March 27.

"Real estate is down 10 [percent] to 25 percent across the U.S., foreclosures are at an all-time high and here we're talking about having the highest real estate tax increase this county has ever had? That baffles me," said Supervisor Gary Creed, who voted against advertising the rate.

"Twelve cents is about an 18 percent increase," said Supervisor Jim Politis, who also voted against the proposal. "We have gas going up, food going up, everything else going up. Eighteen percent is a huge increase. I've never seen anything above 10 percent."

But Supervisor Bill Brown, who made the first motion to go with administration's recommendation, said: "It's difficult for me to suggest 75 cents, but when I look at the needs of this county, I think you have to address those needs."

Brown said that, prior to joining the board three months ago, he wasn't aware of how many of the county's buildings are deteriorating.

The county plans to issue $130 million in revenue bonds over five years, beginning with $45 million in 2009. That money would pay for new schools, a new courthouse, a public safety building and a renovated jail.

Three cents of the 12 cent tax increase, or $2 million, would be used to cover a portion of that debt, and 2 cents of the base tax rate would be transferred from school capital to cover school-related debts.

Supervisor Mary Biggs supported Brown's motion.

"I think that we just have so many needs, and when we reassess, we lower it a bit too much, and that's how we got into this position," she said.

Biggs also said she is concerned that the county doesn't have exact numbers for how much state funding it will receive, and she likened setting the real estate tax rate right now to "shooting at a moving target."

"Is that smart to do? Does that make any sense?" she asked the board.

"We do that every year," Creed said.

The state requires the board to have a budget plan in hand by the beginning of the fiscal year on July 1. The proposed budget projects receiving $82.9 million in state, federal and other designated funds and $76.5 million in county dollars that are not designated for a specific purpose.

Virginia's 2009-10 biennial budget was passed by the General Assembly on Thursday, but Gov. Tim Kaine still has a chance to amend it before the legislature comes back for its April 23 veto session.

The budget bill going to the governor's desk would cut aid to localities by $50 million each year, according to the Virginia Association of Counties' March 14 newsletter.

Assistant Montgomery County Administrator Carol Edmonds told the board that the proposed budget was developed based on the administration's best projections of what the county will get in state funding. Now, it's a waiting game.

"I honestly can't tell you how much you're going to know this time next week," she said.