March 9, 2010
One the original published schedule, the Senate Budget and Taxation Committee was slated to be making its major decisions on budget issues. However, that process has been delayed one week to allow more items to be resolved.
According to the Maryland Reporter’s coverage:
Budget and Taxation Committee Chairman Ulysses Currie, D-Prince George’s, blamed February snow for the delay, and said his panel needs another week to go over the budget and decide about legislation that might affect it.
“Because of the snow, we really got behind. We only have one day for hearings, and all other committees have five,” Currie said, pointing out that budget committees need to spend the bulk of their time going over agency budgets.
Further on in that article, Committee Vice Chairman Ed Kasemeyer reflects on some bigger-picture issues still facing the committee:
House Majority Leader Ed Kasemeyer, D-Baltimore and Howard, vice chair of the full budget committee and chairman of its subcommittee on health, education and human resources, said there’s also discussion about cutting legislative spending mandates that drive up costs for programs such as higher education, K-12 education and health care.
“Some major things are still out there in terms of how we want to structure” spending, Kasemeyer said.
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Posted by Michael Sanderson
March 3, 2010
MACo testified today in the Senate Budget and Taxation Committee on the Administration’s Budget Reconciliation and Financing Act (BRFA), SB 141. MACo First Vice President Wayne Cooper and Executive Director Michael Sanderson offered testimony acceding to the slate of cuts presented as part of the budget plan, but warning against additional reductions. Commissioner Cooper offered, “we’re just not going to be able to handle any more cuts… we just can’t.”
MACo also submitted testimony on two other broad budget-reconciling bills heard in the committee, SB 840 and SB 1004.
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Posted by Michael Sanderson
March 2, 2010
The Maryland Department of the Environment stated its opposition during its departmental budget hearing to a proposed cost shift to local governments of two important ground water studies already underway. The department contacted MACo directly to inform them of their opposition and requested dissemination of their budget statement, excerpts of which are listed below:
The Maryland Department of the Environment does not agree with the recommended reduction. Despite the increasing pressure on the State’s general fund, the Governor recognizes the critical importance of basic scientific information to ensure that Maryland continues to have a sustainable fresh water supply and has elected to maintain level funding for these important studies in FY 2011. These studies are essential to proper management of the State’s current and future water supplies.
A reliable source of clean fresh water is a fundamental requirement for both good public health and economic health. Between now and 2030, Maryland’s population and demand for fresh water are projected to
increase by 15 to 20 percent State-wide, with higher rates in the faster growing parts of the State. These studies provide critical scientific information to ensure that our State’s fresh water sources are properly
managed to maintain adequate supplies to support our existing population and meet the demands of continued economic growth and development. These studies have been developed by MDE in cooperation with the Maryland Geologic Survey and the U.S. Geologic Survey as recommended by the Governor’s Advisory Committee on the Management and Protection of the State’s Water Resources. The Advisory Committee was established by the Governor at the request of 72 legislators following the drought of 2002, which caused many water systems in Maryland to run short of water and required the imposition of State-wide water use restrictions. It is only a matter of time before the State will face the next drought. In the mean time, demand for water is continuing to increase, particularly for public supplies, thermoelectric power generation and agricultural irrigation.
It is not feasible for local governments to pay for these studies. Aquifers cross many boundaries and allocation of expenses would be problematic. Local governments also have no source of funding for this type of scientific assessment work. This is a State responsibility.
MACo appreciates the department outreach, and the resistance to the suggested cost shift. (See previous Conduit Street coverage of this issue)
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Posted by Michele Dinkel
March 1, 2010
MACo has scheduled a Press Conference for this Wednesday, March 3 at 9:30 a.m. in the House of Delegates Lowe Office Building in Room 218, also known as the Howard County Delegation Room.
County elected officials will call for an end to massive cuts in State Aid to Local Government. A Media Alert was issued this morning.
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Posted by Ellen Clarke
February 28, 2010
There are many State budget documents available to review, but county government related information is often buried in multi-page reports where it is difficult to locate.
MACo has identified several sections of the budget that affect county government and posted them on a table on the Budget and Tax page of the Research section. Based on issues already raised, the following areas are highlighted: Overview of State Aid to Local Governments, Highway User Revenues, Procurement of Voting Systems, Disparity Grant, Local Health Departments and the Environment.
The MACo staff will continue to add relevant issues from the budget as they arise.
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Posted by Ellen Clarke
February 21, 2010
Despite a number of high profile comments by various leaders that a shift in teacher pensions would not be addressed in the 2010 legislative session, Senate president Miller has kept the issue alive by introducing a revised version of that proposal. Senate Bill 959 would shift some cost increases in teacher pensions beginning in FY 2012.
The operative definition in the bill is that of “Local Share,” which is defined (on page 4 of the first reader bill) as follows:
(6) “LOCAL SHARE” MEANS THAT PORTION OF THE TOTAL EMPLOYER CONTRIBUTION FOR LOCAL EMPLOYEES THAT:
(I) EXCEEDS THE TOTAL EMPLOYER CONTRIBUTION FOR LOCAL EMPLOYEES THAT WAS CALCULATED FOR FISCAL YEAR 2011; AND
(II) IS SOLELY ATTRIBUTABLE TO:
1. SALARY INCREASES ON OR AFTER JULY 1, 2010, FOR LOCAL EMPLOYEES; AND
2. THE HIRING OF NEW LOCAL EMPLOYEES ON OR AFTER JULY 1, 2010.
The bill proposes that this calculated “local share” would become a funding responsibility of the local school board, rather than being supported by the State.
This proposal, described by President Miller to county leaders as “modest,” would isolate those costs arising from new hires and salary increases. This marks a substantial change since last year.
The comparable operative section of last year’s bill (Senate Bill 710 of 2009, also introduced by President Miller) read as follows:
(6) “LOCAL SHARE” MEANS THAT PORTION OF THE TOTAL
EMPLOYER CONTRIBUTION FOR LOCAL EMPLOYEES THAT EXCEEDS THE TOTAL
EMPLOYER CONTRIBUTION FOR LOCAL EMPLOYEES THAT WAS CALCULATED
FOR FISCAL YEAR 2010.
The fiscal impact for the 2019 legislation was massive — with counties absorbing some $100 million in additional costs in the first year of effect, and rapidly ballooning up to some $450 million by the fourth year, based on some nominal projections for cost escalation. The amount of the cost shift in the 2010 bill is likely to differ substantially with the prior bill, but is likely to still escalate to a very substantial cost shift from the State to its counties.
MACo has consistently opposed such a shift in costs, citing both the fiscal effect on counties, and the fact that the current State funding of pension obligations was a deliberate decision of the Thornton Commission and its accompanying legislation. Counties have regularly argued that taking this one element of school support in isolation and targeting a “fix” loses its proper perspective amidst an array of school funding formulas and offsets.
SB 959 has not yet been scheduled for a public hearing. The bill will be taken up for a position soon by the MACo Legislative Committee. Senator Miller had been scheduled to meet with MACo’s Legislative Committee during its February 17 meeting, but was unable to attend.
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Posted by Michael Sanderson
February 19, 2010
For its most recent bond sale, Maryland will once again be rated AAA (“Triple-A”) by all three major bond rating agencies. This quick barometer is widely used in Annapolis and policy circles as a measure of fiscal responsibility, and Maryland is among only seven states to receive this top rating on its debt.
Baltimore Sun coverage
Daily Record coverage
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Posted by Michael Sanderson
February 16, 2010
The Annapolis Capital reports on the primary lingering question with the current proposed state budget — the $389 million in federal assistance that is used to balance the FY 2011 State budget.
As referenced by guest speakers and MACo staff at recent meetings of the MACo Legislative Committee, if these funds are not available, then additional reductions to the proposed budget will be required to reconcile the spending plan for the coming year. NACo has been advocating for action on legislation to provide the F-MAP extension, and Maryland officials have encouraged the State’s Congressional delegation to fight for these funds as well.
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Posted by Michael Sanderson
February 12, 2010
In the recent document from the Department of Legislative Services entitled “Overview of State Aid to Local Governments – FY 2011 Allowance,” a real snapshot painted of support for actual local government functions (as opposed to education and other areas where counties are supporters as well).
For the segments of the report that offer the multi-year perspective, see this link from the MACo website. Direct support for county and municipal governments has dropped by 62.5% from FY 2007 to FY 2011 — nearly $600 million.
MACo plans to continue populating this page as budget issues arise in the weeks ahead. Stay tuned to the blog and the MACo website, for more information on budget issues affecting county governments.
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Posted by Michael Sanderson
