[RP TownTalk] 15% higher property tax proposed to pay for Pr. George’s schools effort

[James D. Holmes]

Here we go again, More Taxes!

15% higher property tax proposed to pay for Pr. George’s schools effort


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By Arelis R. Hernández March 13 at 5:33 PM



Prince George’s County Executive Rushern L. Baker III (D) unveiled a 
bold budget proposal Friday that would raise property tax rates for the 
first time in 35 years and includes layoffs and furloughs, all as a way 
to free up more funding for schools, public safety and economic development.

The $3.63 billion budget proposal was received warily by the County 
Council, which must pass a final budget by June. Chairmain Mel Franklin 
(D-Upper Marlboro) said he and his colleagues will scrutinize Baker’s 
proposal carefully to see if the sacrifice is appropriate.

One key issue will be whether Baker can circumvent a 1978 law known as 
TRIM that requires the county to get voter approval in order to raise 
property taxes.

Baker says there is language in a 2012 school funding law that gives him 
authority to exceed the property tax cap in order to fund schools. He is 
proposing raising the property tax rate from $0.96 per $100 of assessed 
value to $1.11 per $100 of assessed value  the highest rate in the 
region. About 5,000 fixed- or very low-income households would get a tax 
credit to offset some or all of the increase.

Baker’s proposal would fully fund a $1.9 billion spending request from 
the county schools chief that would significantly increase per-pupil 
spending in hopes of bridging the gap in academic performance between 
county students and those in neighboring jurisdictions.


It also includes nearly $50 million more for public safety programs and 
scattered increases in funding for economic development, part of an 
overall increase of 8.2 percent from the current fiscal year’s spending 
plan.

Let’s face it, the most sought-after counties in this region, this 
state, and this nation are the ones that are safe and have the best 
public education systems, Baker said. I am asking the county council ... 
to raise revenues to educate our children.

Citizen activists who have defended the property tax cap in the past 
said the issue of whether to raise rates should be put on the ballot. 
The voters have told them over and over again to leave us alone and look 
to other sources, said longtime resident Judy Robinson said. It’s 
government as usual.


To help pay for the new initiatives, Baker also proposed eliminating 110 
county government jobs and furloughing all county employees for five 
days  despite a recent warning from the county council that furloughs 
were a non-starter.

We haven’t always seen eye to eye with the county executive on the issue 
of furloughs, Franklin said. He called Baker’s proposal a painful budget 
for many employees.

The furloughs will apply to all county employees, including Baker. 
Administration officials said they would negotiate the specifics of the 
job cuts with the council in coming weeks.

Baker  who coasted to a second term in November and must leave office in 
2018 because of the county’s term-limits law  says he is determined to 
keep boosting schools, public safety and economic development and has 
already trimmed other spending in every way he can think of.


We cannot wait, we cannot do it halfway, and we cannot be tentative in 
how we do it, Baker said. This is our moment... This is why I ran for 
county executive.

As revenues remained flat over the last four years, the county 
government stretched our resources and we made things work, Baker said. 
In order to cover revenue shortfalls, the county shrank its budget 
reserves eliciting a warning from Wall Street that more dipping could 
jeopardize the county’s bond rating.

For years, county leaders have said their ability to raise new revenues 
through property taxes was limited because of TRIM (Tax Reform 
Initiative by Marylanders), the 1978 law passed by voters that said any 
property tax increase must be put on the ballot. The law has survived 
repeated repeal attempts.

But Baker said Friday that a three-year-old state law that shifted 
teacher pensions costs to local governments Senate Bill 848 provides him 
with the authority to raise taxes without voter approval.

It allows counties to exceed local property tax caps in order to 
maintain school funding at levels required by the state. Although the 
proposed budget would finance the school system at $117 million above 
state requirements, Baker said he believes that a provision in the law 
that states counties can exceed county charter limitations on local 
property taxes for the purpose of funding the approved budget of the 
local school board gives him and the council the opportunity to cover 
the entire $1.9 billion funding request.


The budget provides a framework for propelling the county into new 
heights, Baker said. We had a vision and turned it into bold action.

Baker’s proposal leaves intact many of his prized economic development 
initiatives  such as the $50 million incentive fund for business, which 
the council had considered cutting, and funding commitments for a new 
regional hospital. Baker said he expects those initiatives to yield 
tangible economic benefits in the near future.

The new public safety funding would go towards hiring 100 police 
officers to replace retiring personnel and also expand the force; and 
building three new police stations across the county. County 
firefighters would receive funding to hire 35 new recruits and complete 
construction of three new stations.

There is also additional money for the corrections department, the 
Sheriff’s Office and the court system.

The county will hold public information sessions on the budget in coming 
weeks, and the council will have hearings to gather community input as 
it begins its deliberations.

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