Article: Recession's Effects Still Pinch; Local Governments Eye Tax Increases

Despite a rebound in the Washington area's economy, many local governments remain in financial straits, with at least four jurisdictions considering tax increases.

Although area employment and retail sales have risen in the last year, local officials said land values continued to stagnate, but population increases and lingering effects of the recession are forcing more spending on schools and other services.

Arlington officials said yesterday that their budget for fiscal 1995 is at least $12.7 million in the red, making it virtually certain that the county will have to raise its property tax rate for the third straight year.

"You see stories about the strong national and even local ...

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