The national economy is tanking and the state is looking for budget savings. But closer to home Allegheny County Executive Dan Onorato has proposed a $762.7 million budget with a modest rise in spending and no tax increase.

Local taxpayers have appreciated his tight-fisted budgeting over the years, but it didn't come without a major fight in 2008. That battle was over the 10 percent alcoholic drink tax and $2 car rental tax, both launched with great controversy to cover the county's public transit subsidy.

But the taxes are generating more revenue than expected, possibly $38 million instead of $30 million by year's end, so the county executive has prudently called for reducing the drink tax to 7 percent on Jan. 1.

While the money was used to get Allegheny County through this year's budget, there will be no creative new levies for 2009. That means no immediate solution to the $35 million structural deficit cited by Councilman William Robinson, who chairs the Budget and Finance Committee.

Mr. Onorato, who has cut the county payroll by 607 employees in five years and been a champion of service consolidation with the city of Pittsburgh, can point justifiably to running a tight financial house. But that feat becomes more difficult with each passing year.

A big reason is the county executive's commitment to the base-year method on property assessment, which essentially freezes them at their 2002 level, when the normal rise in real estate values otherwise would generate more revenue for the county each year. A landmark legal case is before the state Supreme Court to end use of the base-year method, and if the justices rule against Mr. Onorato it could send shock waves across the county, particularly for its property assessment system.

For now, the county executive remains committed to finding more efficiencies with the city and even getting enabling legislation for a city-county consolidation referendum. Along the way, he and County Council should resist appeals, sounded by at least one council member, to cut the property tax due to the nation's economic downturn.

Being tough with a buck must be government's mantra. Allegheny County will have enough trouble keeping its ledger balanced without piling one tax cut on top of another.