Without a doubt the citizens of Kent County, and for that matter of Maryland, are in favor of any plan that provides potential improvements in education that allows for students: 1) to be fully prepared for the ‘real world’ after their education; and 2) to be ‘work-force competitive’ regionally, nationally, and globally.
That being said, taxpaying citizens want that plan to be within a reasonable and affordable financial budget.
High regard and appreciation is expressed to the Kirwan Commission for their valued effort in this multi-year, multi-million-dollar study, its final report and recommendations: The Blueprint for Maryland’s Future, aka Kirwan.
The Kirwan Commission missed the point about being financially reasonable and affordable. Kirwan is turning out to be a very expensive unfunded mandate Legislated into being by the Maryland General Assembly in 2021.
Originally, back in late 2019, the announced price tag for The Blueprint for Maryland’s Future/Kirwan was just under an overwhelming $40Billion spread out over a 10-year implementation period. As a reference point only, with approximately 2.2 million Maryland households, that calculates to over $18,000/MD household.
Most are not familiar with the forecasted costs of Kirwan for Kent County; they were published in a January 2022 Fiscal Impact document by the Department of Legislative Services [DLS], link below.
https://dls.maryland.gov/pubs/prod/Educ/LocalFiscalImpactofImplementingtheBlueprintforMarylandsFuture.pdf
Throughout this document Kent County, one of the least wealthy counties in MD, consistently last or next to last is most wealth metrics, is specifically and frequently pointed out as a jurisdiction that would see significant financial impact implementing and funding Kirwan. Furthermore, reams of costly administrative red tape and compliance burdens are also generated by Kirwan’s Accountability and Implementation Plan reporting requirements.
The initial Department of Legislative Services [DLS] estimated funding forecast for Kent County, adding up on a By-Year basis the estimated ‘additional’ funding required for Kirwan from FY24 to FY34, is $43.7Million more than the amount of funding required without Kirwan. $43.7Million may not sound like much, but this is just for Kirwan. The County has a lot of other ever-increasing expenditures Kent County taxpayers have to pay for.
* For every $300,000 our Kent County requires in revenue to fund expenses and projects, the County needs $0.01 / $100 assessment in real estate tax rate.
* Taking literary license I round up that $43.7Million funding estimate to $45Million to make the math easy. Albeit, with significant realization, the DLS funding estimates are grossly underestimated, with real actual funding being anywhere from 3-to-6 times the DLS Jan 2022 estimates, across the state on a by-county basis. The DLS acknowledges funding estimates for Kirwan are a constantly moving target, affirming Kirwan will cost more, much more than originally forecasted.
* $45,000,000 / $300,000 = a real estate tax rate of $1.50 just to fund Kirwan implementation; albeit, to reiterate, which we now know is a gross underestimation.
* Add the above real estate tax rate of $1.50 just to fund Kirwan implementation to the current County real estate tax rate shown on your recently received real estate tax bill, $1.022, and the Kent County real estate tax rate for all expenses, including funding Kirwan implementation, goes up to $2.522 / $100 assessment.
* Financial impact of funding Kirwan implementation example #1; if your current 2024 r/e tax bill is, say, around $2,400/yr, and your family budgets $200/mo to pay it, in order for the County to fund Kirwan and all the other expenses the County needs money for, your r/e tax dollar amount will increase to around $6,000/yr, requiring your family to budget around $500/mo to pay it, a $300/mo increase.
* Financial impact of funding Kirwan implementation example #2; if your current 2024 r/e tax bill is, say, around $3,600/yr, and your family budgets $300/mo to pay it, in order for the County to fund Kirwan and all the other expenses the County needs money for, your r/e tax dollar amount will increase to around $9,000/yr, requiring your family to budget around $750/mo to pay it, a $450/mo increase.
* Financial impact of funding Kirwan implementation example #3; if your current 2024 r/e tax bill is, say, around $4,800/yr, and your family budgets $400/mo to pay it, in order for the County to fund Kirwan and all the other expenses the County needs money for, your r/e tax dollar amount will increase to around $12,000/yr, requiring your family to budget around $1,000/mo to pay it, a $600/mo increase.
And so on.
Kent County taxpayers are about to be financially blindsided.
Kent County continually discusses the need for affordable housing. Real estate taxes are part of a family’s budget plan; we are trying to entice young families to move-here, stay-here. Real estate tax increases to fund Kirwan will also bring crushing financial stress to not only the 12% of Kent County’s population that is under the poverty level, but also to the significant number of families living paycheck-to-paycheck.
Question: Who among us would decide to fully upgrade our homes without first and foremost, being prudent and practical people, establish a budget for how much we can afford, and how we are going to pay for it? No one! But that is exactly what the Kirwan Commission did.
Put succinctly The Blueprint for Maryland’s Future/Kirwan, while a great education program, is a monetary monstrosity that is prohibitively expensive and unsustainable not only for Kent County but Statewide.
Asking our Annapolis leadership, Governor Moore, Senate President Ferguson, and Speaker of the House Delegate Jones, to temporarily pause the implementation of Kirwan to review its costs and financial impact, and adjust accordingly to make it affordable to fund, is a reasonable request.
Mike Waal
Chestertown
Sian Salsbury says
This letter is part of the problem with improving education. So many people complain about how awful the education system is yet they complain even louder about spending money to improve it. When politicians and economists try to control schooling we get poor education at the expense of our children and our futures. It costs a lot to properly educate children so they are “1) to be fully prepared for the ‘real world’ after their education; and 2) to be ‘work-force competitive’ regionally, nationally, and globally.” Why do you think so many teachers are quitting and so few people are becoming teacher? No money to do what is necessary and no respect for those that try to do so. I always want these critics to take a year teaching in the system as it exists now, underfunded thus lacking resources, and see if they change their thinking at all about investing money.
Mike Waal says
I did not complain about our KCPS! I am complaining about the cost of The Blueprint/Kirwan. It is truly unaffordable / unsustainable for Kent County! I am presenting an analysis of the projected funding required for The Blueprint / Kirwan on May 7th. Trust u can b there!
Tom Timberman says
For the past 18 months, I’ve been told Kent’s total contribution to the Blueprint costs was 10-11 million over ten years and the annual/monthly payments started lower for the first 2-3 years and gradually got larger. I’ll double check with the county, but wonder where the $43.7 million figure originated. If Mr. Swap is correct, then home owners are in trouble. Tom Timberman
Mike Waal says
I will be making a presentation at the Commissioners Mtg on May 7th to explain the $43,700,000 price tag for The Blueprint/Kirwan. Hope you can attend or watch live stream. Mike
Mike Waal says
I am presenting an analysis of the projected funding required for The Blueprint / Kirwan on May 7th. Trust u can b there! It substantiates the $43,700,000.00.
Bill Anderson says
The really sad part of Mr. Waal’s analysis is that it guarantees that every public school student will eventually graduate from their high school, just as they do today -uneducated.
Gren Whitman says
Do want our young people to get the best education possible.
Don’t want my property tax raised to pay for it.
(Cue: Crocodile tears)
Martha F. Rasin says
I vaguely recall that when gambling was legalized in Md the promise was that proceeds would go toward education. Did that happen?
Jennifer Barnes says
I absolutely agree. The way Kent County’s wealth was calculated should definitely be more aggressively discussed and remedied if still applicable. The county is considered 100% rural with a noted population decrease, an increasing older population and declining school enrollment. Kent County’s population is below 20,000, primarily agricultural in nature with stagnant economic growth. High paying industries may look for enterprise zones with tax incentives, but a lack of educated talent could be a large factor regarding the lack of significant interest in considering the county.
Furthermore, a young educated person or a families life style and proximity to desired amenities, access to a wider variety of leisure options , educational activities and personal growth needs vary greatly and Kent County, MD may not fit expectations or needs.
An article in Yahoo Finance discussed with LaMotte Company’s CEO Scott Amsbaugh reasons for moving its R&D to the Pencader Corporate Center off Route 896 in Glasgow, Delaware instead of expanding at their corporate location in Chestertown, MD. . Amsbaugh said the company wanted to increase production and has run out of research and development space at its current location .They’ve also had difficulty filling jobs.
Amsbaugh stated for the article that he chose the Glasgow site for its proximity to the University of Delaware, from which it hopes to attract chemistry and engineering talent, as well as the state’s skilled workforce to operate its specialized equipment and the available research space. In consideration was a location in Pennsylvania. In addition, Amsbaugh mentioned the new location as having access to major international shipping routes. Access to bridges, ports and airports is critical for any number of industry expansion needs.
The exit of R&D to a more desirable location to achieve growth indicates that the current demographics of Kent County and some business expansion needs may not be well matched and enterprise zones are not necessarily a solid driver in attracting businesses. Dixon Valve as well as other small companies have experienced difficulties in attracting employees for year round employment as well as seasonal positions. While Washington College graduates excellent students, it is not a major research and development university. It’s unfortunate, but most students do not stay after graduation.
An integrated academic/vocational high school could be an excellent solution to consider moving forward into the future , especially in meeting a number of requirements for the Kirwan Blueprint. Delaware has been using this model in their public vocational schools with much success.
In addition, a more serious evaluation of the number of seasonal second homes in Kent County should be noted and taken more seriously when using data to make economic decisions and when evaluating grant criterion.
Tourism in Kent is generally limited to the boating season, Ag Tourism could bring more dollars, but I’d be cautious about the numbers in a primarily feed crop situation. County Commissioners should consider the number of high paying jobs a company will generate , the length those jobs will remain as well as other company growth impact factors such as demands on infrastructure at minimum. Vetting a company with rose colored glasses in order to sugarcoat the reality of under achieving economic solutions to solve fiscal problems is never wise nor sustainable.
You pay a price to live in a rural paradise. However, how much are people willing to pay.
Kirwan Background
https://www.mabe.org/advocacy/blueprint-advocacy-resources/#:~:text=The%20bill%20also%20mandates%20that,to%20implement%20the%20Commission's%20recommendations.
http://conduitstreet.mdcounties.org/2019/05/30/school-funding-part-2-money-changes-everything-the-wealth-formula/
LaMotte:
https://finance.yahoo.com/news/water-quality-tests-manufacturer-build-170059977.html
https://delawarebusinesstimes.com/news/lamotte-opens-glasgow-site/amp/
https://lamotte.com/
Vocational Schools in DE
https://www.polytechpanthers.com/m/
https://www.nccvotech.com/apps/pages/index.jsp?uREC_ID=1823162&type=d&pREC_ID=1982534
Deirdre LaMotte says
Yes and no. The owners of LaMotte want to sell to a private equity in a few years.In order to do this, they are expanding to numerous warehouses, not just Newark. And the people being hired, from what I am told,
have a frequent turnover rate in Newark.
So, it is not that Chestertown has an issue, per se…and yes,
it must be difficult recruiting. But I do not see Dixon finding this a deal broker with Chestertown.
That being said, any rural area will have a disadvantage in the school system as long as funding is determined by county tax revenues. Every county in this state should be receiving the same level
of funding in order to achieve fair return on student investment.
Mike Waal says
Regards Jennifer Barnes and KC Wealth, below are the wealth-metrics that Annapolis uses to determine KC is a ‘Wealthy County’ relative to edu. It is just one column, column 7, that gets KC in trouble, and establishes KC as a ‘Wealthy County’. It is not our overall wealth, but wealth-per-student, because we have a low student population relative to total wealth. And our student population will decline further as real estate taxes are increased to pay for Kirwan, my opinion, and probably yours. Affordable housing – pretty much non existent in KC. Young families can’t afford to live here. Higher R/E Taxes to pay for Kirwan is not affordable-housing-friendly.
From the State Aid Formula Wealth Data Spread Sheet
Final Wealth Calculation
Column 1 – Net Taxable Income – Kent County Ranked 23rd in the State
Column 2 – 100% Assessed Value of Operating Real Property of Public Utilities – Kent County Ranked 23rd in the State
Column 3 – 40% Assessed Value of All Other Real Property – Kent County Ranked 22nd in the State
Column 4 – 50% of Assessed Value of Personal Property – Kent County Ranked 24th in the State
Column 5 – 40% of TIF Adjustment – N/A, no ranking
Column 6 – Total Wealth – Kent County Ranked 23rd in the State
Column 7 – Total Wealth Per-Pupil – Kent County Ranked 3rd in the State
[Mike Waal Note: Total Wealth Per-Pupil is a calculation dividing Total Wealth, column 6,
by FTE [Full Time Enrollment, aka student population]. There is no Column for FTE within the State Aid Formula Wealth Data Spread Sheet. Kent County FTE is 1650, the 24th Lowest in the State.]
Column 8 – Personal Property: Railroad Operating – N/A, no ranking
Column 9 – Personal Property: Utility Operating – Kent County Ranked 24th in the State
Column 10 – Personal Property: Business – N/A, no ranking
Column 11 – Personal Property Subtotal – Kent County Ranked 24th in the State
Column 12 – Real Property: Full Year – Kent County Ranked 22nd in the State
Column 13 – Real Property: New Construction – Kent County Ranked 24th in the State
Column 14 – Real Property: Railroad Operating – N/A, no ranking
Column 15 – Real Property: 40% Subtotal – Kent County Ranked 22nd in the State
Column 16 – Qualified TIF Adjustment – N/A, no ranking
As most of you know, GDP is a measure of a jurisdictions wealth, whether that jurisdiction is a Country, State, or County. On a Maryland state-wide basis, KC is ranked 23rd, NEXT-TO-LAST, in GDP! Not surprisingly, Somerset County has the lowest GDP.
I can tell you, Jennifer, et al, Annapolis is NOT INTERESTED in discussing the State Aid Formula Wealth Data! Why? Because of the impact to the Big 8.
I can tell everyone, KC is not the only County negatively impacted by Kirwan. Every County is. The Kirwan funding estimates in the January 2022 Kirwan financial impact analysis by the Department of Legislative Services are totally and overwhelmingly underestimated, anywhere from 3 – to – 6 times underestimated. And every County is concerned about the massive escalating cost of Kirwan, and they readily admit they cannot afford Kirwan as it is defined right now. DLS has not revised Kirwan funding estimates because DLS admits the numbers are a constantly moving target, that funding Kirwan will cost more, much more, then originally estimated back in 2022. They just can’t get a grip on what it will cost, and that’s a bad sign.
So that KC $43.7Million Kirwan implementation funding estimate ….. is it low, very low. Example; the DLS had the County’s share of the KCPS FY24 edu budget increase at just $600,000. It came in at $1,600,000. The Kirwan Effect! If that continues, and trustfully it will not, but in the event it does, we are looking at the cost of implementing Kirwan increasing from $43.7Million to potentially $118Million!!! Let that sink in.
Not that we care about what is going on outside the Kent County Bubble, albeit, the DLS missed their estimate for Kirwan funding for every state jurisdiction, for Balt. City by a factor of 6.
The State leadership is well aware of what is financially going on with Kirwan; Gov. Moore, Senate President Ferguson, and Speaker of the House Jones. They are getting an ear-full from every Maryland jurisdiction. Trustfully they will address this issue during the FY24 Gen Assy.
Mike Waal says
The $43.7Million KC funding for Kirwan comes from the Department of Legislative Services. I provided a link to the document in which the financial impact of Kirwan is discussed. I suggest everyone read it before commenting. Go to the charts on pages 10 [edu funding without Kirwan] and 11 [edu funding with Kirwan]. Do the math.
If you read my initial paragraphs, everyone is all in for a better edu, even me, albeit, within a budget that the majority of KC taxpayers can afford.
Most of you folks that have provided comment have no issue with your taxes being significantly raised, I get that, as you are in the minority upper income percentile for KC. The majority of KC taxpayers cannot afford their real estate taxes increasing by a minimum factor of 2.5.
There are a lot of issues as to why teachers leave the field of edu. I would suggest all you commenters volunteer to be a Substitute Teacher, get in the class room, see what it is all about. Then comment. The atmosphere in schools today is not what is was went all of you went to school.
The fact is in the private sector teachers can make more money, a lot more. It has always been that way, always will be.
Mike Waal says
Regards Jennifer Barnes and KC Wealth, below are the wealth-metrics that Annapolis uses to determine KC is a ‘Wealthy County’ relative to edu. It is just one column, column 7, that gets KC in trouble, and establishes KC as a ‘Wealthy County’. It is not our overall wealth, but wealth-per-student, because we have a low student population relative to total wealth. And our student population will decline further as real estate taxes are increased to pay for Kirwan, my opinion, and probably yours. Affordable housing – pretty much non existent in KC. Young families can’t afford to live here. Higher R/E Taxes to pay for Kirwan is not affordable-housing-friendly.
From the State Aid Formula Wealth Data Spread Sheet
Final Wealth Calculation
Column 1 – Net Taxable Income – Kent County Ranked 23rd in the State
Column 2 – 100% Assessed Value of Operating Real Property of Public Utilities – Kent County Ranked 23rd in the State
Column 3 – 40% Assessed Value of All Other Real Property – Kent County Ranked 22nd in the State
Column 4 – 50% of Assessed Value of Personal Property – Kent County Ranked 24th in the State
Column 5 – 40% of TIF Adjustment – N/A, no ranking
Column 6 – Total Wealth – Kent County Ranked 23rd in the State
Column 7 – Total Wealth Per-Pupil – Kent County Ranked 3rd in the State
[Mike Waal Note: Total Wealth Per-Pupil is a calculation dividing Total Wealth, column 6,
by FTE [Full Time Enrollment, aka student population]. There is no Column for FTE within the State Aid Formula Wealth Data Spread Sheet. Kent County FTE is 1650, the 24th Lowest in the State.]
Column 8 – Personal Property: Railroad Operating – N/A, no ranking
Column 9 – Personal Property: Utility Operating – Kent County Ranked 24th in the State
Column 10 – Personal Property: Business – N/A, no ranking
Column 11 – Personal Property Subtotal – Kent County Ranked 24th in the State
Column 12 – Real Property: Full Year – Kent County Ranked 22nd in the State
Column 13 – Real Property: New Construction – Kent County Ranked 24th in the State
Column 14 – Real Property: Railroad Operating – N/A, no ranking
Column 15 – Real Property: 40% Subtotal – Kent County Ranked 22nd in the State
Column 16 – Qualified TIF Adjustment – N/A, no ranking
As most of you know, GDP is a measure of a jurisdictions wealth, whether that jurisdiction is a Country, State, or County. On a Maryland state-wide basis, KC is ranked 23rd, NEXT-TO-LAST, in GDP! Not surprisingly, Somerset County has the lowest GDP.
I can tell you, Jennifer, et al, Annapolis is NOT INTERESTED in discussing the State Aid Formula Wealth Data! Why? Because of the impact to the Big 8.
I can tell everyone KC is not the only County negatively impacted by Kirwan. Every County is. The Kirwan funding estimates in the January 2022 Kirwan financial impact analysis by the Department of Legislative Services are totally and overwhelmingly underestimated, anywhere from 3 – to – 6 times underestimated. And every County is concerned about the massive escalating cost of Kirwan, and they readily admit they cannot afford Kirwan as it is defined right now. DLS has not revised Kirwan funding estimates because DLS admits the numbers are a constantly moving target, that funding Kirwan will cost more, much more, then originally estimated back in 2022. They just can’t get a grip on what it will cost, and that’s a bad sign.
So that 2022 KC $43.7Million Kirwan implementation funding estimate is low, very low. Example; the DLS had the County’s share of the KCPS FY24 edu budget increase at just $600,000. It came in at $1,600,000. The Kirwan Effect! If that continues, and trustfully it will not, but in the event it does, we are looking at the cost of implementing Kirwan increasing from $43.7Million to potentially $118Million!!! Let that sink in.
Not that we care about what is going on outside the Kent County Bubble, albeit, the DLS missed their estimate for Kirwan funding for every state jurisdiction, for Balt. City by a factor of 6.
The State leadership is well aware of what is financially going on with Kirwan; Gov. Moore, Senate President Ferguson, and Speaker of the House Jones. They are getting an ear-full from every Maryland jurisdiction. Trustfully they will address this issue during the FY24 Gen Assy.
David A Turner says
Thanks for all your research Mike.
Patricia Heaps says
Maryland’s Motto: If you can dream it, we can tax it. There were very real reasons why Governor Hogan vetoed this legislation. After all, if money guaranteed academic outcomes, Baltimore City kids would be able to read above a 3rd grade level.
And to the responders to this article who disparage those who are concerned about property tax increases? Many homeowners in the country already budget over a $1,000 a month for property taxes – how much more “fair share” can they afford?
Mike Waal says
Patricia Heaps is absolutely correct.
The latest figures for edu funding that I could find are for 2021.
Kent County was ranked 3rd HIGHEST in the State, with per-pupil-funding at $18,791.
That is more than Baltimore City, Patricia, which is ranked 5th HIGHEST, with per-pupil-funding $18,396.
57% of funding Kent County edu comes from Kent County revenues, while only 37% comes from the State.
Only 21% of funding Baltimore City edu comes from Baltimore City revenues, while 70% comes from the State.
Let that sink in.
Your State tax dollars fund Baltimore City way more then our own Kent County.