MEA Clean Energy Briefing

February 2, 2012

The Director of Maryland Energy Administration (MEA), Malcolm D. Woolf, briefed the Senate Finance Committee recently to provide an update on EmPOWER and other energy programs in the state. The four main objectives discussed were:

  • Status of SEIF (i.e. Strategic Energy Investment Fund)
  • Progress in Adding Renewables in Maryland
  • Progress in Promoting Energy Efficiency
  • Smart Investments for Real Results

Background on SEIF:

Due to the state experiencing exponential increases in electricity bills and blackouts in summer 2011, the General Assembly implemented the Maryland Energy Investment Fund (SEIF) to help citizens take control of their energy future. The objective of this initiative is to help reduce the state’s carbon footprint, which would also expand Maryland’s economy by creating new, green collar jobs. Here is a link that goes in detail about what the SEIF does and how it affects different segments in the state. In addition, Mr. Woolf discussed during the briefing about SEIF’s cash flow uncertainties and what MEA would be receiving.

Renewables

Mr. Woolf mentioned that there has been a growing demand of Marylander’s using renewable energy in an effort to save more money. The briefing pointed to four particular methods through which renewable energy can be accessed which are: geothermal, solar hot water, solar PV, and wind. Out of all of the four methods, FY 2011  results show that more people used solar PV as a source of energy.

Energy Efficiency

EmPOWER programs

The EmPOWER Maryland program initiatives also look to help Maryland citizens save energy that include appliance and lighting rebates for homeowners, commercial lighting rebates, energy efficiency services for industrial facilities, and Home Performance with ENERGY STAR. MEA estimates that EmPOWER programs have saved Marylander’s over $2 billion with over 270,000  participants. In addition, demand responses are also estimated to have saved citizens over 1,600 MW.

Smart Investments for Real Results

The goal of this map is meant to help counties learn about how many businesses and other local establishments in their district are using MEA initiatives to save more energy. Here is a link to the webpage.


Frederick County Streamlines Government Operations, Eliminates Management Services Division

February 2, 2012

The Frederick County Board of Commissioners announced that the Management Services Division has been eliminated and the reorganization of its department will take place immediately.  The announcement comes after continued discussion by the county to restructure in order to better align staff with services without increasing costs.

Board President Blaine Young stated:

“The Board of County Commissioners has continued to look for ways to streamline county government operations, and the restructuring of the Management Services Division will accomplish that goal with no employee layoffs or reductions in salaries.  This restructuring will provide savings of over $160,000 and allow the county to achieve additional savings for our taxpayers by moving forward with plans to place a county facility on the market.  The board continues to work to put the county in the best financial positions of strength to deal with the economy and continued state and federal budgetary impacts.”

For additional information, contact County Manager David Dunn.


Pension Shifts = “Great Pain” for Maryland Counties

February 1, 2012

“The O’Malley Administration has understated the impact the pension shift will have on local governments”,  according to Prince George’s County Deputy Administrator for Budget, Finance, and Administration Tom Himler. A recent Washington Post article reported:

Now, Tom Himler, Baker’s deputy administrator for budget, finance and administration, has come up with an estimate of what it would cost the cash-strapped county to take on the pensions in the 50-50 split that O’Malley has proposed.

It’s not a pretty picture.

Himler, who was responding to a request from state legislators from the county who want to help the Baker administration fight the shift, estimates that it will cost the county $34 million in fiscal year 2013, which begins July 1. By fiscal year 2022, Himler estimates, it will cost the county as much as $98 million annually.

Given the importance of the issue, and the many confusing elements of the plan and its reporting, MACo hopes to clarify the proposal on the table and its effects on county governments.


Multi-year Estimates for Pension Shift Available

February 1, 2012

Members of the General Assembly, seeking to better understand the proposals in the Governor’s proposed fiscal plan, have requested information on the projected cost of the proposed teacher pension shift. A recent estimate, from the Department of Legislative Services indicates the county costs escalating rapidly — jumping by nearly $70 million immediately in FY 2014, and rising in each subsequent year thereafter, reaching over $358 million by the end of the projection, FY 2017.

Click here to see the county-by-county estimates for FY 2013 – FY 2017


State Board of Education to Hear Anne Arundel MOE Appeal

February 1, 2012

In a forthcoming process already reported publicly, the Maryland State Board of Education will hear Anne Arundel County’s appeal regarding the county budget and the state’s maintenance of effort law. The county relied on information from a recent attorney general opinion to base its 2011-2012 budget comparison, but was found by the State Department of Education in its official certification letter to have improperly done so.

From a release by the State Board of Education today:

The Maryland State Board of Education has received an appeal from the Anne Arundel County Government challenging the Maryland State Department of Education’s determination that Anne Arundel County is in non-compliance with the FY 2012 State Maintenance of Effort Requirement. The letter notifying the County that it is in non-compliance and the letter and accompanying materials from the Anne Arundel County Executive disputing this finding can be found at www.marylandpublicschools.org/MSDE/stateboard/FY+2012+Maintenance+of+Effort+Noncompliance

The Maryland State Board of Education has set a deadline of February 24, 2012, at 5:00 p.m. for the receipt of formal written responses on this matter from interested parties. Persons wishing to submit responses must submit twenty hard copies to:

James H. DeGraffenreidt, Jr.
President
Maryland State Board of Education
200 West Baltimore Street
Baltimore, Maryland 21201

The State Board also requests that an electronic copy be sent to tsouth@msde.state.md.us.


Changes to NACo Prescription Drug Card Program Outlined

January 31, 2012

As previously reported on Conduit Street, last month the National Association of Counties’ (NACo) Board of Directors voted to alter  the NACo Prescription Discount Card Program, a change that will now provide participating counties with an option to receive a $1 fee for each prescription filled.  Below are answers to frequently asked questions about the changes to the program.

Q: If my county has already signed a contract, do we need to sign the new one?

A: If you want to continue participating in the current program without change, the answer is “No.” If, however, you wish to initiate the transaction revenue sharing fee model, you need to sign and submit to NACo, Exhibit B, Rider 1 and your county’s W-9 form. The documents are available on NACo’s website at www.naco.org/drugcard.

 

Q: We would like to have a new, signed agreement for our files. What should we do?

A: If you choose to continue with the current program, sign Exhibit B and return it to NACo. A fully executed copy will be returned to you once it has been signed by all parties. If you choose the transaction revenue sharing fee model, sign both Rider 1 and Exhibit B and your county’s W-9 and return them to NACo. A fully executed copy will be returned to you once it has been signed by all parties.

 

Q: What does this new contract mean for our residents?

A: The renewed agreement continues the excellent program that has produced 24 percent average prescription savings for your residents. Residents in counties that choose not to participate in the transaction revenue sharing fee model will receive a slightly greater savings percentage.

 

Q: Can our residents still go to the same pharmacies under this agreement?

A: Yes. This agreement does not affect the size of the pharmacy network. More than 60,000 pharmacies participate in the NACo Prescription Discount Card Network.

 

Counties that would like to maintain the current program do not need to take any action.  However counties that do wish to adopt the transaction revenue sharing fee model must fill out paperwork. For additional information contact Andrew Goldschmidt.


County Perspective – Budget Reconciliation and Financing Act of 2013

January 31, 2012

Accompanying the Governor’s proposed FY 2013 budget is the Budget Reconciliation and Financing Act (BRFA) of 2013.  Because the budget bill itself cannot amend state laws or effect provisions lasting beyond its own fiscal year, the BRFA makes the changes to law, both short-term and long, to implement the budget plan.

The BRFA of 2013 contains many statutory provisions of concern for county governments.  MACo has prepared a chart summarizing these provisions and county concerns.


Governor Proposes a 6% Sales Tax on Gasoline

January 31, 2012

As previously reported on Conduit Street, the Governor announced on WTOP’s “Ask The Governor” program, his support to apply the 6% sales tax to gasoline sales as a way to raise funds for transportation infrastructure.  As reported by the Washington Post:

The sales tax would be phased in annually in increments of 2 percent at the wholesale level, meaning that a gallon of gas that now costs $3.48 at the pump would increase 6 cents.

If the price of gas rises or falls, the sales tax amount would also. Combined, the three-year increase per gallon could total 18 cents or more, making Maryland’s combined levy on gasoline more than 41 cents a gallon and among the highest in the country.

When speaking on WTOP, the Governor was also asked about his support of a “lock box” to protect the Transportation Trust Fund from future transfers to the State’s General Fund.

O’Malley said he also would be open to a “lock box” measure to prevent the state from dipping into transportation funds, as it has in the past, to cover other spending.

While one of  the options the Blue Ribbon Commission on Maryland Transportation Funding considered, the Commission recommended an increase in the gas tax and other fees that are currently being paid, instead of applying the sales tax to gasoline sales.  The Commission also recommended a “lock box” to protect the Transportation Trust Fund.  As reported by MarylandReporter.com:

The top recommendation of the Blue Ribbon Commission was to create a legal prohibition requiring that money directed to the Transportation Trust Fund be spent on transportation. In past years, when the General Fund budget has run low, the Transportation Trust Fund has been used as a supplemental revenue source.

The Governor’s proposal has been receiving mixed reactions. Also reported by the Washington Post:

“The governor is walking into the biggest nightmare of working-class families,” said Senate Republican leader E.J. Pipkin (Queen Anne’s). “With this new gas tax, the citizens of Maryland will be paying premium and getting regular. . . . Add that to his other proposed tax increases, and I don’t see how Maryland is attractive to businesses — the governor’s stated goal.”

Several Democrats in the General Assembly said they wanted to wait and see O’Malley’s proposal before taking a position. House Speaker Michael E. Busch (D-Anne Arundel) said any discussion of raising the gas tax would have to come after the legislature agrees on a plan to close the state’s roughly $1 billion shortfall.

Other coverage of this issue can be found in the Gazette and the Annapolis Capital.


MACo Summary of 2012 Septics Legislation and Comparison with 2011 Septics Bill

January 31, 2012

As previously reported on Conduit Street, Governor O’Malley introduced his septics legislation (SB 236) last week.  The bill stems from recommendations made last year by the Task Force on Sustainable Growth and Wastewater Disposal and prohibts major subdivisions on septic systems.  Local governments that adopt a “4 tier system” in their comprehensive plans will have some additional flexibility.  A major change in the bill is that the Maryland Department of the Environment will now approve residential subdivision plats. 

The bill can be difficult to follow and MACo has prepared a 3-page summary highlighting the history of the bill, its contents, and why some Task Force recommendations were not included in the bill.  Additionally, MACo has also prepared a chart showing the differences between this year’s bill and last year’s proposed legislation (HB 1107 / SB 846).

Hopefully you will find these resources useful in reviewing the proposed legislation.  MACo will be debating the septics legislation in the coming weeks.


Bay Restoration Fee May Quadruple For Some Residential Users

January 31, 2012

Governor Martin O’Malley unveiled his legislation last week to increase the Bay Restoration Fee (BRF).  Rejecting a recommendation from the Task Force on Sustainable Growth and Wastewater Disposal to triple the fee, the Governor instead opted to double the annual fee from $30 to $60 for septic system users and charge sewer users based on their actual water consumption.  However, a January 27 MarylandReporter.com article raises concerns that the water consumption guides in the bill may actually almost quadruple the fee for a typical family of four. 

The American Water Works Association reports that an average person uses 70 gallons of water each day. Using this formula, a household of four would use 8,400 gallons of water per month.  The governor’s proposal would increase this household’s tax from the current $30 to $117. …

Residents of Maryland’s suburban counties would be paying the higher fees all around.  [Howard County Deputy Chief of Utilities Jeff] Welty said average residential use in Howard County is 5,200 gallons. Harford County residents average 5,400 gallons, according to the county’s website. Officials in Elkton in Cecil County report nearly 60% of residential homes use more than 9,000 gallons per month. Under O’Malley’s proposal, this group of Elkton homes would pay $127 annually.


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