SAN DIEGO -- Revenues to the county of San Diego in the current fiscal year are falling well short of projections, which could lead to service cuts in the future, officials said.

In a report to the Board of Supervisors, Chief Administrative Officer Walt Eckard said the county was impacted by a decline in tax revenues and hurt by problems in state government finances that have reached "titanic proportions."

Property tax revenues are likely to come in $25 million below the county's projections, while sales taxes will be $22 million less than expected, said Don Steuer, the county's chief financial officer.

The stock market freefall has taken $1.1 billion in value away from the county pension system, Steuer said.

The county is working under a $5.188 billion budget in the current fiscal year.

Major programs reductions or cuts won't come until the next fiscal year, beginning July 1, Supervisor Greg Cox said.

"It's difficult times," he said. "We are going to have to reduce services."

Cox said county management officials will have to take a hard look at "big ticket" items such as the redevelopment of the County Operations Center in Kearny Mesa and the replacement of the Las Colinas Womens Detention Facility in Santee.

Those projects might have to be spread out over a longer period of time, he said.

In the meantime, county departments will have to "do more with less," said Supervisor Dianne Jacob.

Steuer said that, despite the looming cuts, there will be increasing demand for services from the county as the recession impacts more residents.

"The next fiscal year will be a challenging one," Steuer said.

Cox said program funding by the state will be reduced in accordance with the reduction in state funding.

About 85 percent of the state money sent to the county Health and Human Services Agency comes with strings attached, said Nick Macchione, the director of the department.

Residents who use county health services will face longer wait times and receive fewer services, Macchione said. However, core services that are legally mandated will remain in place, he said.