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GREENSBORO - Guilford County has started construction planning for a $115 million jail. And students are ready for the new schools promised from those bonds voters passed in May.

But since the country's financial markets slipped into turmoil in September, plans the county had to issue $200 million in bonds in January could be waylaid.

"It's really too early to determine what's going to happen after the first of the year," said Brenda Jones Fox, the county finance director.

Fox's office will wait and see before issuing the bonds for major county projects, she said.

So are finance offices across the state and nation that want to avoid higher insurance and interest rates linked to bonds issued in a risky market. Borrowing became tough last month as investors left municipal bond markets. The forecast is uncertain.

Guilford voters passed $651.4 million in bonds in May for schools, a jail and GTCC. Meanwhile, Greensboro voters will decide on another $205 million in bonds in November that, if sold, wouldn't be issued until next summer at the earliest.

Fox's counterparts in Cabarrus, Mecklenburg and Wake counties are re-examining their bond plans, including delaying or reducing the proposals.

Massachusetts and Louisiana each decided in the past week to not issue bonds for $750 million and $226 million, respectively.

Wake County attempted to issue $354 million in bonds Sept. 23 just as the markets began a meltdown, but had to pull back. Cabarrus County has held off selling $56.6 million in bonds for three weeks.

"We will decide what it is we need for construction already under way and what the marketplace will bear," said Melinda Canady, Wake's finance director.

One analyst compared the problem to a household in tight times.

"It's no different from a family budget," said Thomas G. Doe, president of Municipal Market Advisors. "We're not going to go out to dinner any more. We're not going to buy a new car. That's the similarity."

The problem could linger. Doe compared repercussions of last week's bailout to Black Tuesday in 1929.

"During the first few years after the '29 crash, municipal issuance dropped 24 percent," he said. "It wouldn't be unreasonable to think that we could see municipal issuance go from a total of $430 billion last year, to something like $350 billion next year, which would be a drop of 25 or 30 percent."

Government bonds are generally considered a stable investment, but people with money are insecure about where it goes these days.

"One of the things that we want to do is be nimble," said Dena Diorio, the finance director in Mecklenburg County, which plans to issue $375 million in bonds for schools, parks and other projects in January.

Diorio says the situation isn't dire, yet - an opinion shared by Fox in Guilford County.

"I think you have to be vigilant and keep an eye on what's going on and try to make reasonable, smart decisions," Fox said.

The New York Times News Service and The Associated Press contributed to this report.

Contact Gerald Witt at 373-7008 or gerald.witt@news-record.com