All Three Rating Agencies Give Prince George’s County a AAA Bond Rating

June 6, 2011

For the first time, Prince George’s County has received a AAA bond rating from the three major Wall Street rating agencies.  Standard and Poor’s gave the county its first AAA rating in 2008, and Moody’s Investor Services followed with a AAA? in 2010.  Fitch Ratings was the last agency to do the same.  According to Gazette.net:

Analysts with Fitch Ratings announced May 27 that they upgraded their rating on the county from AA+ to AAA, the highest rating possible. Ratings are a government equivalent to a personal credit score, and indicate to investors the economic strength of a company, fund or municipality.

For Prince George’s, the top rating means that the county can borrow money through bond sales at a lower interest rate, a move that could save the county millions on the cost of building new schools or other major expenses.

The final Fitch upgrade marks the pinnacle of nine years of steady improvement for the county, which was frequently listed as a riskier investment because of its troubles with crime and low-performing schools and a resident-imposed cap on tax increases known as TRIM.

 


Prince George’s County Council Approves FY 2012 Budget

May 27, 2011

The Prince George’s County Council approved a $2.7 billion budget that slightly reduces funding to education but maintains funding for key school programs.  As reported by the Washington Post:

With the new budget, council members also allocated funds for an economic development fund and for road repairs, new police and fire recruits, and a one-time $750 bonus for county employees.The public school system receives the single largest share of the county budget: Spending on the schools will total about $1.6 billion, about $13 million less than the current budget.

The new budget also restored cuts that Baker had proposed to nonprofit funding. The spending plan gives the nine council members $100,000 each to hand out to nonprofit groups based in their districts; the executive branch will allocate other funds.


Prince George’s County Rejects Raises, May Provide One-Time Bonus

May 18, 2011

As reported by the Washington Post,  Prince George’s County Executive Rushern Baker and the County Council may have struck a deal to provide one-time bonuses to approximately 6,000 employees instead of a 2% raise that would benefit 1,500 employees.

In a 5 to 3 vote Tuesday, the council voted down a 2 percent raise for about 1,500 county employees who are members of the American Federation of State, County and Municipal Employees.

But in private discussions between some council members and Baker, each side held out the possibility that the county would be able to fund bonuses for all county workers this year. Council Chairman Ingrid Turner (D-Bowie) signaled the outlines of the deal in a letter to Baker that discussed similar one-time $750 bonuses for state employees.

Such bonuses for county workers would cost $5 million to $6 million in the fiscal year that begins July 1. The payments would not be rolled into base pay and would not affect pensions or future raises.


State Budget Decisions Pose Challenges to Prince George’s County FY 12 Schools Budget

April 8, 2011

The Gazette is reporting that Prince George’s County Council Chair Ingrid Turner is requesting additional meetings with General Assembly representatives from the county to discuss county budget shortfalls created as a result of state decisions on pensions and school aid to local governments.

The county council learned during a budget briefing Tuesday that Prince George’s is expected to get between $6 million and $14 million in additional state aid; the county had sought about $20.9 million more, the amount Gov. Martin O’Malley (D) cut from the schools’ original funding request.

In both budget versions, lawmakers increased the amount the state spends per student, which will bring Prince George’s about $10.3 million more, Himler said. But next year, Maryland is also requiring the county to pay about $163 per worker — a total of $2.4 million — for the pensions offered to employees in the Prince George’s public schools system, community college and library system.

Matthew Stanski, chief financial officer for the county school system, said the county based its $1.6 billion education budget on the assumption it would get the additional $20 million.


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