ROSEVILLE, Mich. -- Property values are falling and more layoffs are coming for Macomb County as it continues its budget struggle.

The county had 6,700 properties being foreclosed on in 2008, concentrated in communities like Eastpointe and Roseville, and is facing a $10.3 million deficit.

This is a community that has a whole social structure dependent on the auto industry," said Macomb County Commissioners Chairman Paul Gielgham. "We're seeing the declines that in that industry, we've been seeing them for years, but we've had a global financial meltdown that has impacted our core industry."

In April the commission narrowly approved the county's first mileage tax rate increase in 30 years.

The lost in property revenues, estimated to be at $41 million over the next three years, is expected to result in the county having to compensate by making even deeper cuts in jobs.

"Its going to be the responsibility of the community chairs to work with their departments to find cost savings," Gielgham said. "At the same time, we know that we need more systematic change."

The sheriff's department is expected to take the greatest hit. Sheriff Mark Hackel said his only option would be to close more quarters in the prison.