That was the report from finance director Robert Daniel during Tuesday night's meeting of Bedford County Board of Commissioners. The deficit will continue next year unless spending is brought under control or additional tax revenue is brought in.

The $2 million deficit is not new information -- commissioners discussed it and the Times-Gazette reported it last August, when the budget was passed. The county is spending down its fund balances to make up the difference. But county departments struggle with fuel and food costs, which could increase the deficit even further.

"That is driving our budget up," said Daniel.

Commissioner Joe Tillett said that county departments should institute a hiring freeze by not filling vacant positions, and that any purchases should be carefully considered.

Making up that $2 million gap would require an increase of 30 cents per $100 assessed value on the property tax, given current property values.

Meanwhile, on a somewhat brighter note, the commission voted Tuesday night to refinance $3.5 million remaining on a bond issue, saving the county a projected $100,000 in interest even after various fees and costs have been accounted for. But that savings is in the debt service fund, a separate part of the county budget from county departments' operating funds. So it can't be directly applied to the deficit.

In other action Tuesday night, commissioners approved a budget amendment for various county funds and departments. In the general fund, the amendment includes $39,600 in new money, much of it related to increased utility costs and to rental costs for the Youth Services Office.

Commissioners also made minor changes to the resolution establishing a county audit committee and to the county budget resolution. Both changes had been requested by the state comptroller's office.