Bartlett:G-8 Summit Places Financial Burden on Counties

May 16, 2012

This week’s 38th annual G-8 Summit scheduled to be held at Camp David has raised concerns amongst some of Maryland’s Congressional members.  Originally scheduled to be held in Chicago, Maryland local officials have  had two months to prepare for the high profile meeting, which is expected to draw thousands of demonstrators.  The Frederick News Post reports that two U.S. Senators Cardin and Mikulski along with Representative Bartlett are asking the federal government to reimburse  local governments for what they are spending on security measures for the meeting.

U.S. Rep. Roscoe Bartlett, R-6th, has a simple message when it comes to whether Frederick County agencies should get federal reimbursement for costs associated with this week’s G-8 summit at Camp David.

“Fair is fair,” Bartlett said Tuesday in a phone interview. “The least they can do is recompense the cost.”

….

So far, Frederick County has not been promised any federal support, while Chicago — the host of the upcoming North Atlantic Treaty Organization meeting next week — is getting $40 million, officials said this week.

With the G-8 summit just days from convening the leaders of eight nations at Camp David, the Frederick Police Department, county sheriff’s office and others are working overtime to make sure residents are protected.

….

The amount of security needed depends on two things, Bartlett said.

Local law enforcement must prepare for the worst, Bartlett said. If there ends up being a lot of protests, more officers will need to be called in at the last minute, he said.

“They want to have enough show of force to discourage any unruly behavior,” Bartlett said. “I hope the protesters make their point in a civilized way.”

With some roads closed in Frederick County and public school classes canceled on Friday, it’s obvious that added precautions are being taken, Bartlett said.

If the federal government does not step in and offer financial assistance, the money will have to come from somewhere else, Bartlett said.

“It just means the taxpayers will have to come up with additional money,” he said. “They were going to cover the expenses in Chicago, so they need to cover them here.”


Special Session Expected to Wrap Up on Wednesday

May 15, 2012

The special session started yesterday with brief floor sessions followed by hearings in the Senate and House budget and tax committees on the Budget Reconciliation and Financing Act of 2012 and the State and Local Revenue and Financing Act of 2012.   It is anticipated that both the Senate and House will approve the budget plan by Wednesday.

As reported by the Gazette:

Maryland’s Senate Budget and Taxation Committee passed a budget plan Monday afternoon that would raise income tax rates for high-income Marylanders and undo the so-called “doomsday” cuts that were set to go into place after lawmakers failed to reach a spending plan compromise during the regular session.

Democratic leaders anticipate two budget bills will be voted on by both chambers by Wednesday. The full Senate is expected to vote on the committee’s version during a Monday evening session.

The bills are expected to take longer in the House, where there is greater opposition to various aspects of the proposals and where the bills are being considered by both the Appropriations and Ways and Means committees.

The full Senate  debated and approved both bills on second reader yesterday evening and will take up the bills on third reader this morning.  The House is scheduled to debate the bills on second reader today, with final passage anticipated tomorrow.

The Budget Reconciliation and Financing Act of 2012 includes the shift of teacher pension costs to county governments.

Additional coverage of the special session can be found in the publications listed below.

Baltimore Sun (limited free views available)
Capital-Gazette
Frederick News Post
Washington Examiner

Washington Post
Washington Times


Special Session Summary Report Available

May 14, 2012

As the General Assembly has now convened its special session, the Department of legislative Services has released a 33-page summary of the various effects of the three-bill legislative package targeted for passage.

Click here for the full document
Click here to jump to the county-by-county effects


MACo Continues to Express Concerns with Teacher Pension Shift

May 14, 2012

MACo offered testimony on SB 1301/HB 1801  today to express its continued concerns with a shift of teacher pension costs to county governments.   This is one of many budget issues to be resolved during the special session.

From MACo’s letter of concern:

The past month has been a difficult one for county governments. The passage of a “doomsday” budget and the uncertainty of whether that budget would be replaced by a proposal approved by the budget conference committee during a special session has forced counties to pull together a number of very different budget scenarios for FY 2013. Under these scenarios, a number of counties may increase property taxes and/or significantly reduce county services.  However, the level and long term consequences of these actions will be set by the budget that is before you today.

When comparing the “doomsday” budget to the one that is before you, the outcomes are very different.  Doomsday represents a one year reduction that can be restored in FY 2014.  The budget before you represents a shift of increasing on-going costs for which counties will be responsible for years to come. While MACo appreciates the work of both the House and Senate to minimize the effects of the pension shift through a phase-in and by providing a number of offsets, it is still concerned with the policy direction and long term effect such a shift will have on county governments and their citizens.


Special Session – Bills and Schedule Now Available

May 11, 2012

With the General Assembly’s special session slated for Monday, the legislation introduced to address budget-related issues has been made available, with a schedule for public hearings (on Monday) as well.

The three bills under principal consideration are:

BRFA – Budget Reconciliation and Financing Act – includes pension shift, formula changes, fund transfers

State and Local Revenue and Financing Act – includes tax changes affecting income taxes, tobacco taxes, and local tax application

Qualified Zone Academy Bonds – technical clarification required to authorize federally funded school projects

The hearing schedule indicates:

MAY 14, 2012

HOUSE APPROPRIATIONS

1:00 P.M. Room 120
House Office Building
6 Bladen Street
Annapolis, MD

Subject: Bill hearings on the Budget Reconciliation and Financing Act of
2012 and Creation of State Debt – Qualified Zone Academy Bonds

Witnesses are asked to sign up for oral testimony and, if
providing written testimony, to provide 40 copies by 11:00 A.M.
Monday, May 14. The committee will accept late testimony;
however, due to time constraints, late testimony may not be
provided to the members during the hearing, but will be
delivered to their offices as soon as possible.

HOUSE WAYS AND MEANS

2:00 P.M. Room 130
House Office Building
6 Bladen Street
Annapolis, MD

Subject: Bill hearing on the State and Local Revenue and Financing Act of
2012

Witnesses are asked to sign up for oral testimony, and if
providing written testimony, to do so by 12:00 P.M. on Monday,
May 14. The committee will accept late testimony; however, due
to time constraints, testimony may not be provided to the
members during the hearing but will be delivered to their
offices as soon as possible.

SENATE BUDGET AND TAXATION

11:00 A.M. 3 West
Miller Senate Building
11 Bladen Street
Annapolis, MD

Subject: Bill hearings on the Budget Reconciliation and Financing Act of
2012, the State and Local Revenue and Financing Act of 2012, and
Creation of a State Debt – Qualified Zone Academy Bonds

Witnesses are asked to sign up for oral testimony and, if
providing written testimony, to do so by 12:00 P.M. Friday,
May 11. The committee will accept late testimony; however, due
to time constraints, testimony may not be provided to the
members during the hearing but will be delivered to their
offices as soon as possible.


Special Session’s Likely “Deal” Emerging

May 10, 2012

In coverage from the Capital Gazette online, the state’s special session seems to be coming into increasing focus as the Governor and legislative leaders announced general layout of the revised budget plan anticipated for next week’s special session. From the article:

In announcing his budget plan with Miller and Busch, O’Malley said the details have been worked out, and the House and Senate have agreed to pass the spending and revenue package in three days.

O’Malley said the special session will focus solely on completing the budget, and other bills will not be brought up.

Secretary of Budget and Management Eloise Foster said the budget will include transferring teachers’ pensions to the counties over a four-year period. Starting next year, she said, the state and the counties will split the burden evenly, and the counties’ obligations will increase every year afterward.

Additional coverage can be found in the Baltimore Sun (limited free views available).


Baltimore Radio Show Focuses on County Budget “Guesswork”

May 9, 2012

On today’s edition of Maryland Morning, airs on Baltimore public radio station WYPR, host Sheilah Kast welcomed Frederick County Commission President Blaine Young and MACo Executive Director Michael Sanderson to discuss the state of county budgets, as the state’s own budget remains unresolved.

Click here for program information, and to listen to the audio stream online.

 


Democrats and Republicans Still Differ on Need for a Special Session

May 7, 2012

As previously reported on Conduit Street, Democrats and Republicans have differing views on the need for a special session.  Democrats believe the special session is necessary to “protect state priorities,” while Republicans believe the budget that passed the General Assembly should stand.  As reported by the Washington Post:

With the legislature’s inaction last month, more than $500 million in cuts to education, state agencies and other planned spending are scheduled to take effect July 1, a result O’Malley said Friday that he cannot stand.

“There is too much at stake not to move forward,” O’Malley said. “I’m confident that we can come together with the Senate president and House speaker to complete this most important work for the people of our state.”

However, Republicans do not agree with this view.

In an opinion piece distributed to Maryland newspapers this week, House Republican leaders said that such tax increases are damaging to the economy and that the budget that resulted April 9 should stand.

“The legislature should take a breather, live with the budget just passed in April, and begin the 2013 session with a new sense of purpose in January,” said the piece, authored by Minority Leader Anthony J. O’Donnell (R-Calvert) and Minority Whip Jeannie Haddaway-Riccio (R-Talbot).

Now that it has officially been announced, Republican members of the General Assembly are “sensing” whether the special session is really an opportunity. As reported in the Baltimore Sun (limited free views available):

The Democrats across the state and the Republicans across the state and independents across the state are coming to me and saying, ‘Have they lost their minds?”’ said House Minority Leader Anthony J. O’Donnell of Calvert County.

…But to Republicans, doomsday doesn’t look bad at all. They certainly prefer it to a tax increase. And, as many Republicans like to point out, the budget the legislature adopted still represents a $700 million increase in spending over last year.


Special Session Set to Begin May 14

May 7, 2012

Governor Martin O’Malley announced Friday, May 4 that he would convene a special session of the General Assembly to begin on May 14 to finalize the State’s FY 2013 budget plan.  From the Governor’s press release:

“There is too much at stake not to move forward,” said Governor O’Malley. “I’m confident that we can come together with the Senate President and House Speaker to complete this most important work for the people of our State.”

Next week, the Governor, Senate President and House Speaker will hold a joint press conference to discuss the upcoming session.


County Effects of “Doomsday” Yield Mixed Views

May 4, 2012

Today’s gazette covers more on the state’s current “doomsday” budget, including varying views on the severity of cuts (including cuts on county governments and local public safety agencies) and on their effects relative to the fiscal plan that appeared near adoption before unraveling in the session’s final hours.

From the Gazette coverage:

In all, 19 grant programs totaling $20.8 million from the Governor’s Office of Crime Control and Prevention, or GOCCP, would be eliminated as part of the $512 million in funding reductions included in the state’s default budget. That spending plan will go into effect July 1 unless the legislature finishes work on the budget.

Talk in Annapolis this week suggests legislative leaders are increasingly likely to convene a special session of the General Assembly the week of May 14, but the threat of the doomsday budget still has many worried about its consequences. Others, including Republican legislators, say the doomsday budget might be good for a state that they say spends too much generally.

House Republicans argued last month that at $35.4 billion, the plan is about $700 million larger than the fiscal 2012 budget.

The full Gazette article includes obersvations from several Maryland counties, reflecting on the difficulty of the options ahead.


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