In the past, POS was funded through general operating funds but in recent years was shifted into the capital budget and is now funded through general obligation (GO) bonds.  In addition, the payment of some local POS funding has been “stretched out” so that instead of a county receiving its total allocation for a given year, that year’s allocation is paid out to the county over three years.  These changes to the POS program left some counties carrying the cost for POS projects out of their own budgets because they had already encumbered funds based on assurances that the POS funds would be available.   As previously reported on Conduit Street, there is $51 million in Governor Martin O’Malley’s proposed FY 2013 capital budget for local POS.  The $51 million is sufficient to allow counties to pay all past encumbrances that resulted from the POS funding changes.

But while the General Assembly will be debating whether $51 million is the appropriate amount of POS funding during this Session, it will also be debating the appropriate uses for that funding.  In the past year, two schools of thought have evolved concerning the use of POS money.  The first school, supported by the environmental community and some members on the environmental committees of the General Assembly, is that POS funding should be focused on land acquisition, in order to take advantage of low land costs and interest rates.  The other school of thought is that POS should focus on recreational facilities and infrastructure, in order to take advantage of low construction costs and to generate jobs.

The second school of thought was discussed during the recent hearings by the House and Senate Capital Budget Subcommittees.  When reviewing the POS portion of the Department of Legislative Services’ capital budget analysis, both subcommittees evinced interest in using POS funding to create jobs and build infrastructure.  MACo has always argued that POS has been successful because it contains both a land acquisition and facility development component and that local governments should have the flexibility to direct funding between these two components in a way that will best meet local needs.   However, the difficult economic situation has intensified efforts to alter the traditional focus of the program and this debate will certainly continue during this Session.

With the budget process accelerating, participants flocked to the state capital to compete for limited funds above an initial allocation of $250 million that will be divvied up among the state’s 23 counties and Baltimore.

Jocularly known around Annapolis as the “Beg-a-Thon” but rechristened the “Hope-a-Thon” by Gov. Martin O’Malley (D), the appeals to the three members who sit on the Board of Public Works take on more importance this year as O’Malley’s budget proposes a near-record $372 million for school construction.

This increased funding for school construction was previously reported on  Conduit Street.   MACo’s Legislative Committee adopted its annual initiatives for 2012, including School Construction and Renovation Funding on this list of top priority items for the 2012 legislative session. From the initiative summary:

School Construction and Renovation Funding

While the State has laudably increased its school construction and renovation efforts in recent years, the need for funding remains high. Every state dollar invested in school projects leverages roughly two county dollars of local funding. MACo urges the General Assembly to continue its commitment by keeping school construction and renovation funding a high priority, and support a funding level consistent with its own adopted multi-year goals. Additionally, MACo urges the State to develop and adopt a new multi-year funding strategy as the current goal expires in FY 2013.

The Daily Times reports:

In the week since the council took its first vote, the state’s Interagency Committee on School Construction, given the lack of support from the County Council, began reappropriating millions of dollars it planned to give Wicomico County during the upcoming fiscal year to projects outside the region.

The committee was planning to move $3.85 million of $4.5 million to school construction and renovation projects on the western shore. If that money will now stay put given the County Council’s reversal remains to be seen.

…

The alternative funding plan, if approved by the County Council once it receives the operating budget for fiscal year 2013 in April, would bond $12.5 million for construction of the school during December.

Today, representatives from the Wicomico County Board of Education will speak with the Maryland Board of Public Works.

*Prior to traveling to any meetings please confirm the accuracy of the meeting dates and locations with the respective committee as they are subject to last minute changes. Click here to access the Maryland General Assembly Hearing Schedule Index*

Monday, January 23

• Fiscal Briefing
  Senate Budget & Taxation and House Appropriations
  3:00 p.m.
  Department of Legislative Services-Joint Hearing Room

Tuesday, January 24

• MACo & MML Meeting on Session Priorities
  Senate Budget & Taxation
  1:00 p.m.
  3 West Miller Senate Office Building
• Baltimore City Schools-Alternative Financing Proposal
  Senate Budget & Taxation
  1:30 p.m.
  3 West Miller Senate Office Building
• Interagency Committee on School Construction-Distribution of Alcohol Tax Revenue and Alternative Financing Mechanisms
  Senate Budget & Taxation
  2:00 p.m.
  3 West Miller Senate Office Building

Wednesday, January 25

• Board of Public Works
  10:00 a.m.
  Governor’s Reception Room, 2nd Floor, State House
• Sunset Hearing on the State Board of Environmental Sanitarians
  Environmental Matters Committee
  10:30 a.m.
  House Office Building, Room 250
  
• Update on Local Program Open Space Funding & Replacement Schedule
  House Appropriations- Capital Budget Subcommittee
  1:00 p.m.
  House Office Building, Room 120

Thursday, January 26

• Briefing on PlanMaryland
  House Environmental Matters
  10:30 a.m.
  House Office Building, Room 250
  

Friday, January 27

• Chesapeake Bay Overview
  Senate Budget & Taxation- Public Safety, Transportation, & Environmental Subcommittee
  1:00 p.m.
  Schweinhaut, Miller 4th Floor Senate Office Building

*Prior to traveling to any meetings please confirm the accuracy of the meeting dates and locations with the respective committee as they are subject to last minute changes. Click here to access the Maryland General Assembly Hearing Schedule Index*

Tuesday, January 17

• Briefing on Property Tax Assessment Update
  Senate Budget & Taxation
  1:00 p.m.
  3 West Miller Senate Office Building

Wednesday, January 18

• Briefing on Bay Restoration Fund/Watershed Implementation Plan
  House Appropriations-Subcommittee on Transportation & the Environment
  1:00 p.m.
  House Office Building Room 120

Friday, January 20

• Briefing on MOE & Update on K-12 Education
  House Appropriations and House Ways & Means
  1:00 p.m.
  Department of Legislative Services-Joint Hearing Room

Monday, January 23

• Fiscal Briefing
  Senate Budget & Taxation and House Appropriations
  3:00 p.m.
  Department of Legislative Services-Joint Hearing Room

Tuesday, January 24

• MACo & MML Meeting on Session Priorities
  Senate Budget & Taxation
  1:00 p.m.
  3 West Miller Senate Office Building
• Baltimore City Schools-Alternative Financing Proposal
  Senate Budget & Taxation
  1:30 p.m.
  3 West Miller Senate Office Building
• Interagency Committee on School Construction-Distribution of Alcohol Tax Revenue and Alternative Financing Mechanisms
  Senate Budget & Taxation
  2:00 p.m.
  3 West Miller Senate Office Building

Wednesday, January 25

• Board of Public Works
  10:oo a.m.
  Governor’s Reception Room, 2nd Floor, State House
• Update on Local Program Open Space Funding & Replacement Schedule
  House Appropriations- Capital Budget Subcommittee
  1:00 p.m.
  House Office Building, Room 120

Friday, January 27

• Chesapeake Bay Overview
  Senate Public Safety, Transportation, & Environmental Subcommittee
  1:00 p.m.
  Schweinhaut, Miller 4th Floor Senate Office Building

]]> http://conduitstreet.mdcounties.org/2012/01/13/january-calendar-corner/feed/ 0 Emily Hollis http://conduitstreet.mdcounties.org/2012/01/12/presiding-officers-discuss-the-gas-tax-maintenance-of-effort-teacher-pensions-and-planmaryland/ http://conduitstreet.mdcounties.org/2012/01/12/presiding-officers-discuss-the-gas-tax-maintenance-of-effort-teacher-pensions-and-planmaryland/#comments Fri, 13 Jan 2012 02:11:14 +0000 Andrea Mansfield http://marylandassociationofcounties.wordpress.com/?p=12951 ]]> During an interview on the Mark Steiner show on WEAA-FM, Senate President Mike Miller and House Speaker Mike Busch highlighted a number of issues that will be discussed during the 90 day General Assembly Session.  Comments on issues of importance to counties are summarized below.

Possibility of Increase in the Gas Tax

President Miller stated that an influx of money in the Transportation Trust Fund is needed.  It is an economic development, quality of life, and jobs issue.

Speaker Busch commented that the Governor needs to reach out to those counties that have supported a gas tax to garner support from their delegations. There needs to be a ground swell of support to get this through.

Education Funding and Maintenance of Effort (MoE)

Speaker Busch stated that part of the structural deficit is due to an increase in education funding and he thinks the State will get to the Thorton level in Governor’s budget.  With respect to MoE, he commented that MoE is very important. We ask counties to meet a MoE (maintain a level of funding), but we now have counties in a situation where they can not meet MoE.  We need to ensure continued effort from local governments to meet the investments that State has made.

When asked how counties could be forced to meet MoE when some have tax caps in place, Speaker Busch responded that counties receive more money based on the wealth of the county.  There is no excuse for counties under this system not to make that contribution.  They have tax capacity, but choose not to use it.

President Miller suggested packaging together MOE , school construction, and a change in the pension plan so counties see the huge benefit.

Teacher Pensions

Speaker Busch stated that the question is whether or not there should be some shared liability.  That has been what the Senate President has been pushing.  He continued by saying that if  a shift happens, counties need to have a resource to pay for it.  When Social Security was transferred to the counties, they were given the ability to increase the piggy back tax.  There needs to be some kind of relationship worked out so it is done equitably.

President Miller commented that a pension shift should require MOE to be met. They are going to try to find a way to benefit all. Speaker Busch followed up with…their income tax comes from the state, the state can withhold the piggy back tax if it’s not met.

PlanMaryland

President Miller stated that he anticipates changes to the plan.  He commented further that this is not a war on rural Maryland, but an effort to protect sensitive areas in the State.  He said that they need to work with the counties to make sure development plans are responsible.

Speaker Busch commented that the plan is a starting point and that there will be some fine tuning in the House Environmental Matters Committee.

Three State Shortfalls and Possible Ways to Address Them

The Governor states that the State is facing shortfall in three areas:  1) General Fund; 2) Infrastructure; and 3) Water/Wastewater Infrastructure.  He commented that these shortfalls could be addressed through an increase in the sales tax, gas tax, and Bay Restoration Fee.

Education Funding and Maintenance of Effort

The Governor stated that although funding has not been as dramatic in the last two years, the State has given record high amounts of funding for education.  With respect to school construction, the proposed $370 million in FY 2013 would be the largest sum committed since the FY 2008 budget.

With respect to MoE, the Governor commented that roughly half of funding for schools comes from the State and half comes from the counties.  “What has occurred is that as budgetary pressures have increased, some counties, not all,  have tried to find ways to do less.  We can’t allow counties to do less on their end.”

When asked whether he would support efforts to fix MoE, he responded yes, you could count on his support and that he looks forward to working with presiding officers to do so.

PlanMaryland

The Governor stated that we have had a number of meetings and will continue to do so.  The State has been moving methodically, openly, and transparently to determine where remaining green prints and ag prints are located.  We’ve got to protect these areas.  Next logical extension is areas in center, those areas which make the most sense to grow and those areas that makes the least sense.  The State is not going to finance expensive, damaging,  and counterproductive sprawl like what may have occurred when we did not have sound planning and maps.

The Baltimore Sun reports:

Gov. Martin O’Malley said Tuesday he will seek more than $370 million in school construction funding in next year’s budget, making the pledge at the same Anne Arundel County elementary school where six years ago he promised a massive infusion of state money if elected governor.

The figure includes $350 million for the state’s main Public School Construction Program and more than $20 million for two other programs to build and repair schools.

There’s no shortage of demand. Baltimore County Executive Kevin Kamenetz asked state lawmakers Tuesday to spend $70 million on school construction in his county, on projects including the new Dundalk and Sollers Point Technical high schools, renovations and additions at Stoneleigh Elementary, new windows and doors at Pikesville High School, and a new roof at Hereford High School.

MACo’s Legislative Committee adopted its annual initiatives for 2012, including School Construction and Renovation Funding on this list of top priority items for the 2012 legislative session. From the initiative summary:

School Construction and Renovation Funding

While the State has laudably increased its school construction and renovation efforts in recent years, the need for funding remains high. Every state dollar invested in school projects leverages roughly two county dollars of local funding. MACo urges the General Assembly to continue its commitment by keeping school construction and renovation funding a high priority, and support a funding level consistent with its own adopted multi-year goals. Additionally, MACo urges the State to develop and adopt a new multi-year funding strategy as the current goal expires in FY 2013.

From an analysis last year by the Department of Legislative Services, the proposed $370 million would be the largest sum committed since the FY 2008 budget.

A summary of last year’s projects requested – both funded and delayed – is available online here.

The Washington Post reports:

Maryland Gov. Martin O’Malley on Tuesday will propose spending more than $350 million next year on public school construction, the second highest amount in state history, according to several people familiar with his plans.

O’Malley (D) will cast his proposal as one in a series of initiatives meant to spur job creation as the state recovers from the national recession, aides said.

…

O’Malley, whose office declined to comment publicly Monday on his plans, has sought to make school construction a priority since he first ran for governor in 2006. News of an uptick in funding was welcomed by officials in the Washington suburbs.

MACo’s Legislative Committee adopted its annual initiatives for 2012, including School Construction and Renovation Funding on this list of top priority items for the 2012 legislative session. From the initiative summary:

School Construction and Renovation Funding

While the State has laudably increased its school construction and renovation efforts in recent years, the need for funding remains high. Every state dollar invested in school projects leverages roughly two county dollars of local funding. MACo urges the General Assembly to continue its commitment by keeping school construction and renovation funding a high priority, and support a funding level consistent with its own adopted multi-year goals. Additionally, MACo urges the State to develop and adopt a new multi-year funding strategy as the current goal expires in FY 2013.

From an analysis last year by the Department of Legislative Services, the proposed $350 million would be the largest sum committed since the FY 2008 budget.

A summary of last year’s projects requested – both funded and delayed – is available online here.

In his remarks, Brown joked that he was under instructions not to talk about specific taxes, but he said the administration will seek significant investments in school construction, roads, bridges, mass transit and water and sewer projects — all in the name of job creation.

With respect to teacher pensions, he said the following:

Brown was also noncommitttal in brief comments about an ongoing controversy over whether the state should continue to pick up the entire cost of county teacher pensions. In the past, O’Malley has resisted such a shift — much to the delight of MACo leaders — but a move is strongly favored by Senate President Thomas V. Mike Miller Jr. (D-Calvert), among other legislative leaders.