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March 20, 2023

The Chestertown Spy

An Educational News Source for Chestertown Maryland

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News Maryland News

Md. Voters Back Statewide Ballot Questions

November 6, 2020 by John Griep

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Maryland voters said state lawmakers should have more say over the annual budget and voted for the legalization of sports and events betting.

There were two statewide ballot questions up for vote on Nov. 3.

Question 1 will allow the Maryland General Assembly to make changes to the budget proposed by the governor as long as the total does not exceed the governor’s proposed budget.

Currently, state lawmakers may not increase budget items or add new items to the governor’s proposed budget. Once the budget is passed, it cannot be changed or vetoed by the governor.

With passage of Question 1, state lawmakers could move spending between agencies and/or add spending for new items as long as the total budget doesn’t exceed the governor’s proposed budget.

The governor would be able to veto items added or increased by state lawmakers.

The change will begin with the 2024 budget, presented during the 2023 legislative session.

Maryland voters approved the constitutional amendment by 74% for to 26% against.

Question 2 asked voters whether commercial gaming should be expanded to sports and events betting “for the primary purpose of raising revenue for education?”

Maryland voters approved the measure 67% to 33% against.

Maryland will join Washington, D.C., as well as nearby states of New Jersey, Delaware, Virginia, Pennsylvania, West Virginia and New York in legalizing sports gambling.

Lawmakers are expected to discuss and vote on additional details like who should get sports wagering licenses after the state legislature convenes in January.

Sen. Craig Zucker, D-Montgomery, and other lawmakers envision casinos and racetracks to be able to obtain sports wagering licenses, which could allow Marylanders to place bets on professional and college sporting events.

Zucker told Capital News Service that the Washington Football Team could obtain a sports betting license if owner, Daniel Snyder, keeps the organization in Maryland.

According to Zucker, sports betting would generate between $20 million and $40 million per year that would likely go into public schools.

“It’s a pretty non-political, non-partisan issue that both parties agree is good for the state of Maryland in terms of capturing that lost revenue especially during this global pandemic,” Zucker said. “The economy has been hurt and sports betting would help fill in some of the holes that we’ve seen with education funding.”

Capital News Service reporters Philip Van Slooten and Ryan McFadden contributed to this article.

Filed Under: Maryland News Tagged With: ballot question, budget, commercial gaming, election, events betting, general assembly, governor, Maryland, spending, sports betting

Question 1: Md. Voters Will Weigh in on Increased Budgetary Power for State Lawmakers

October 24, 2020 by Capital News Service

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With early voting set to begin Monday, Marylanders will consider a proposed constitutional amendment granting the legislature the ability to increase, decrease and add items to the state budget.

Legislators advanced the measure in March, largely along party lines, with lead sponsors arguing it seeks to balance the budget process while opponents say it removes a check on lawmakers.

If approved by voters, ballot question 1 would authorize the General Assembly to make changes to the state budget as long as those changes do not cause the budget to exceed the total amount submitted by the governor.

“To my knowledge, there is not another legislature that is limited in its ability to be able to change the budget, other than decrease amounts,” Stella M. Rouse, associate professor and director of the Center for Democracy and Civic Engagement at the University of Maryland emailed Capital News Service on Oct. 9. “This is a bit unique.”

The legislature’s budget authority was limited by a constitutional amendment approved by voters in 1916 in an effort to avoid a financial crisis. A balanced budget amendment in 1974 set further restrictions on Maryland’s “unique” budgetary process.

“Under the current Maryland constitution, unlike every other state legislature in the country,” Sen. James C. Rosapepe, D-Prince George’s and Anne Arundel, told the Senate Budget and Taxation Committee when introducing Senate Bill 1028 on March 4. “We have an extremely limited ability to make decisions about how money is spent in the current year’s budget.”

Currently, Article III, section 52 of the Maryland constitution prevents the state legislature from increasing funding or adding any new appropriations to the governor’s executive budget, but lawmakers can decrease funding.

Over the years, legislators developed budgetary tools, which former Senator P.J. Hogan, an early sponsor of similar budget amendments, told the Senate committee back in March were ineffective. One of these is a process of earmarking money known as “fencing off.”

Another way lawmakers direct spending is to mandate it through legislation passed by the majority-Democrat General Assembly.

“What has not worked is ‘fencing’ as an example,” P.J. Hogan said. “Think about the number of times you have fenced off money and said it can only be spent for ‘this’ and a governor says, ‘I’m not going to release the money for that.’ Or you go the other route for mandating spending and that causes problems because you are trying to predict the future.”

Rosapepe explained to the committee that the bill’s title, “Balancing the State Budget,” referred not only to ensuring the state’s finances remain fiscally balanced, “but also balanced between the responsibilities of the governor and the responsibilities of the legislature.”

“One way different groups get a voice in government is through the legislature, through the budget process,” Rosapepe recently told Capital News Service. “Since 1916, the voice of the people does not have a role in allocating money in the budget. It limits the voice of the people in setting priorities in the budget.”

He said one goal of the amendment is to give state lawmakers the same authority that other legislatures across the country and even city councils across the state have when allocating funds toward constituent priorities and giving them a role and a voice in government.

“This is actually a fairly simple change,” Delegate Marc A. Korman, D-Montgomery, said in an email to the Capital News Service. “That provides the Maryland legislature a power 49 other states have, and most Marylanders believe we already have, to let the people’s branch of government fund the people’s priorities.”

While Rouse was not willing to go so far as to say the Maryland General Assembly’s current limited budget authority was unprecedented among other states, a detailed assessment of Maryland’s budget process conducted in 2003 by the Department of Legislative Services, using materials prepared by the National Conference of State Legislatures, found “in most states the governor’s proposal establishes a framework for budget discussion.”

But the study reported in Maryland, Nebraska and West Virginia the legislature had limited power to increase or decrease budget items. Korman, Rosapepe and other amendment supporters argue this limits Marylanders’ ability to influence the budget.

However, a Goucher College Poll released this week revealed how complex ascertaining the public’s funding priorities could be, as shown in Marylanders’ “mixed” responses to questions on police funding.

“Maryland residents are largely supportive of key police reforms that are currently being discussed by state lawmakers and have dominated our national discourse,” said Mileah Kromer, director of the Sarah T. Hughes Field Politics Center at Goucher College in a statement released with the poll results.

“But there’s a mixed message on police budgets,” she added. “Residents support both increasing funding to hire more or better trained police officers and reducing police budgets to allocate more money to social programs.”

Republican opponents of the budget amendment say the governor is in the best position to interpret Marylanders’ priorities.

Sen. Bryan W. Simonaire, R-Anne Arundel, who recently assumed the position of Senate Minority Leader, told Capital News Service it was appropriate for the governor to have his current role in the budget process because his responsibilities are to the entire state and not just a district.

“The people of Maryland elect the governor for a statewide office,” he explained. “I’m elected by 1/47th of the population of the state while the governor has to have the perspective of the whole state.”

The Maryland Department of Budget and Management, in an opposition letter submitted on March 4 to the Senate Budget and Taxation Committee, stated the proposed amendment weakens the executive budget system put into place by voters in 1916.

“The rationale for the Executive Budget Amendment,” the statement reads. “Is that the Governor is the official best suited to preparing a comprehensive plan of expenditures because he has daily responsibility for the administration of State government.”

Simonaire added that Marylanders have shown they prefer a divided government through a Republican governor and a Democratic legislative majority. He believed a new budget amendment could offset this power balance.

He also cautioned that if legislators had more power over the budget process they could use it to benefit their districts, particularly larger ones. A few other Republicans agreed.

Back in 2014, the state’s less-populous yet reliably Republican jurisdictions helped propel Hogan into the governorship, while denser jurisdictions such as Montgomery and Prince George’s counties and Baltimore tend to vote more Democratic. These more populous districts have more representation in the General Assembly.

Delegate Kathy Szeliga, R-Harford and Baltimore counties, who is also opposed to the amendment, wrote in an email to her constituents on Oct. 8 that she would vote against expanding “the legislature’s ability to spend tax dollars and increase spending.”

“The current system creates a check and a balance on the legislature’s desire to centralize funding to the urban areas of Maryland,” she stated.

Delegate Susan W. Krebs, R-Carroll, also mentioned the current system as a check on legislative budgetary power in an email to her constituents this week. She stated she would be voting against the amendment as well.

“The current system creates a check and a balance on the legislature and forces compromise with the governor,” she wrote. “And I think that is good for the entire state.”

But other legislators, Democrats, disagreed.

“This is a restoration of our role. This is not us imposing ourselves on any gubernatorial power,” Delegate Gabriel Acevero, D-Montgomery, who sponsored the House version of the bill told the Appropriations Committee on March 18. “This is a restoration of the legislature’s role to ensure Maryland does not continue to be the weakest state legislature in the union as it relates to the budget. And we’re doing it in a democratic fashion by putting it to the people.”

The Maryland Center on Economic Policy wrote in their statement of support that the limits placed on the General Assembly in 1916 were “in response to a problem that no longer exists,” and that the current amendment “offers a better way to share decision-making authority between the branches.”

Henry Bogdan of the Maryland Association of Nonprofits further testified before the committee in March that the public is currently cut out of the budget process because “You, their representatives, have no power to advance any particular thing that needs to be done.”

“It’s much harder for a constituent or community group to get the attention of the governor on a problem than it is for the constituents or community groups in your districts,” Bogdan said. “You all tend to be much more responsive to people, and you should be able to respond to issues where people want to advance causes in the budget.”

Ultimately, as Delegate Maggie McIntosh, D-Baltimore, chairman of the Appropriations Committee pointed out on March 18, it is up to the people of Maryland to decide what happens next.

“This bill, if it goes to the ballot,” she told the committee before the measure passed, “your constituents have just as much power as you do. Equal power. Their vote is just as powerful as yours.”

By Philip Van Slooten

Filed Under: Maryland News Tagged With: ballot, budget, constitutional amendment, election, general assembly, governor, Maryland, question 1

Mid-Shore Counties OK Level Funding for Chesapeake College

April 21, 2020 by John Griep

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Mid-Shore counties voted Monday night to provide level funding to Chesapeake College for the next fiscal year.

The college initially had sought a 3 percent increase over this year’s funding, but the COVID-19 pandemic has county governments tightening belts in anticipation of lower revenues.

Clifford Coppersmith, Chesapeake College’s president, said the proposed budget reflected the college’s strategic plan and touched briefly on effects of the pandemic.

Dr. Clifford P. Coppersmith, Chesapeake College president

“We are doing everything we can to maintain the college and our workforce,” Coppersmith said.

With the campus closed for social distancing, the college moved all instruction online that could be, he said, and plans for summer courses to be online as well.

The college also is preparing for distance learning for the fall semester if required.

Coppersmith said the college had been working on plans to improve its workforce education and training programs and would be ready with those courses when the economy is ready to go again.

In its initial budget process before the pandemic, the college had called for a tuition increase of $3 per credit hour, but that increase has been rescinded, he said.

Caroline, Dorchester, Kent, Queen Anne’s and Talbot counties allocated a total of $6.5 million to the college for Fiscal Year 2020, which ends June 30. Four of the five counties voted unanimously Monday night to provide the same funding for next year; Dorchester County did not have a quorum on the call.

The total funding from the Mid-Shore counties is divvied up based on the ratio of student enrollment. If Chesapeake College students, for example, came equally from each county, the counties each would fund 20% of the total $6.5 million.

Talbot County Council President Corey Pack said Talbot had budgeted about $1.65 million for the college for next year. The county also has put about $50,000 for the college in its contingency fund, representing the 3 percent increase the college had sought.

If the economy and tax revenues are better than expected, the county council could vote to allocate that money to the college.

Caroline County officials said that county would be allocating about $7,000 more than last year due to changes in the enrollment ratio.

Queen Anne’s County Commission President Jim Moran said that county’s share would be about $1.88 million.

Queen Anne’s was the only county to support the 3 percent increase, with Moran noting the county would be paying less next year as a result of enrollment changes.

Kent and Talbot county officials said those counties were planning on flat county budgets for FY21 as well,

“We’ve done that with all our departments,” Kent County Commissioner Ron Fithian said in the conference call. “We’re letting everybody know it will be the same as last year.”

The counties also unanimously approved the college’s total operating budget of about $23.1 million by category and nearly $400,000 from the counties for maintenance and repair costs.

Tina Jones, the college’s chief financial officer, said the counties provide about a third of the college’s total budget with other sources, including tuition, providing the remainder.

With a bad economy as a result of the COVID-19 pandemic, college officials said Chesapeake could see increased enrollment, which means additional revenue from tuition, but also higher instructional costs.

Approving the total budget by category allows the college to make decisions based on enrollment, revenues, and expenses without having to return to the five counties for approval, Jones said.

Filed Under: Ed Portal Lead, News Homepage, News Portal Highlights Tagged With: budget, Chesapeake College, Education

Kent Eyes School Maintenance of Effort Waiver Request

April 15, 2020 by John Griep

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Decreased revenue as a result of the COVID-19 pandemic has Kent County officials weighing whether or not to seek a waiver from state mandated funding levels for public schools.

The Kent County Commissioners heard the annual budget presentation from the school system during Tuesday morning’s meeting.

But before hearing from Karen Couch, the county’s school superintendent, commissioners outlined funding concerns for next year’s budget.

“With our finances and what we’re projecting, I don’t know where we’re coming from with this budget,” Commission President Tom Mason said. “We’re looking at a 25 to 30 percent decrease in our income tax income, which could be a $3 to 4 million deficit to the county.

“We’ve asked all of our other departments — it’s a flat budget…. We have no salary increases for the county, no new positions, no promotions, we’ve funded (below) FY2020…. We’re very interested in wanting to hear what you say but … I’ll just be honest with you, I don’t see how it’s going to happen,” he said.

“We know we have to fund the maintenance of effort,” Mason said, “even though we are considering asking a deferral on that from the state. And I would hope that if we do that the Board of Education and you as the superintendent would support that and would sign that request.

“We have not decided whether we’re going to do that yet, but it is certainly something we are considering and I believe probably other counties are going to be considering it,” he said. “It would be irresponsible on our part to ask the citizens of Kent County to … they’re already sacrificing and this would be more sacrifice.”

Commissioner Ron Fithian said county businesses are losing tens of thousands of dollars monthly during the closure of non-essential businesses ordered by Gov. Larry Hogan.

“It’s a troubling time,” Fithian said. “We’re going to do the best we can as we move forward, but we don’t know what’s around the next corner.…

“We haven’t got a clue what we’re going to end up with, there’s just too many unanswered questions,” he said. “You don’t even know today when you’re going to go back to school, when our kids are going to go back to school, let alone when the businesses are going to open up.”

The school board has proposed a $29 million budget for Fiscal Year 2021, about $1 million more than this year’s budget. Most of that increase is being sought from county taxpayers and is driven by state funding formulas.

To comply with state maintenance of effort requirements, Kent County would have to provide an additional $510,665 to county schools next year. Another provision, an escalator in state law for those counties whose school spending is below the state average, requires a 2.5 percent increase over current funding, for an additional $515,536.

State funding is projected to increase $130,439 overall, after a reduction of $177,081 for declining enrollment assistance.

Nearly $700,000 of the additional funding would go toward salary increases and new positions, and higher insurance costs, according to the budget proposed by the school board.

The school system is looking to add 3.5 positions for a total cost of $150,000, much of that for a special education teacher at Kent County Middle School. The state’s higher minimum wage accounts for $40,000 of the total salary increase.

Other requests include $50,000 to buy a used bus, $50,000 for school furniture, $30,000 for the lease/purchase of two new buses, $30,000 for the Kent Blended Learning Academy, and $18,500 for the Kent County Middle School athletics fields.

In broad categories, which is how the county commissioners approve the school budget, there would be the following increases or decreases:

• Instruction: $456,292 increase; $390,792 for salary, the remainder for equipment, supplies, materials, and contracted services

• Fixed charges: $391,824 increase

• Special education: $115,380 increase in salary, including $90,000 for the new middle school position

• Administration: $79,807 increase in salary

• Student personnel services: $76,331 increase in salary

• Health services: $17,000 increase in contracted services

• Mid-level administration: $7,529 increase in salary

• Plant maintenance: $1,070 increase in salary

• Transportation: $52,629 total decrease; with $143,324 cut from salaries, but additional spending of $50,000 for equipment, $30,000 for other charges, and $10,695 for contracted services

• Plant operation: $4,244 decrease in salary

Filed Under: News Homepage, News Portal Highlights Tagged With: budget, Education, government, Kent County

Citing Estimated $2.8B Revenue Loss, Hogan Freezes State Budgets, Hiring

April 12, 2020 by Maryland Matters

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Budgets are frozen and new employees aren’t being hired, Gov. Lawrence J. Hogan Jr. (R) said Friday afternoon, moments after the state’s comptroller painted a grim picture of the Maryland’s financial future in light of dramatic revenue losses caused by the COVID-19 pandemic.

In the space of three months, state revenues are estimated to contract by about $2.8 billion, according to new estimates released Friday by Comptroller Peter V.R. Franchot (D) and the Bureau of Revenue Estimates.

Both income tax revenues and sales tax revenues are expected to fall by almost $1 billion before June 30, according to the new predictions. Other smaller pots of revenue, like lottery sales and court fees, have also contracted.

The losses since March and estimated through the end of June amount to about 15% of the state’s overall annual revenues.

The state has never before seen such a steep decline in revenues so close to the end of a fiscal year, officials said.

“The stay-at-home order as well as social distancing are absolutely creating the steepest economic nosedive in modern history,” Andrew Schaufele, director of Maryland’s Bureau of Revenue Estimates, said during a virtual news conference on Friday. “But in their absence, the final economic impacts would be far greater and playing out over a much longer period of time.”

The state will continue to meet payroll expenses and allow necessary increased spending to respond to the novel coronavirus, Hogan said. But his Department of Budget and Management will soon make recommendations for budget cuts, which will be required in all state agencies.

The state will also be tapping into and “spending much of, perhaps all of” the $6-billion-plus Rainy Day Fund to cope with revenue losses, Hogan said.

The state’s three-member Board of Public Works ― which includes Hogan, Franchot and Treasurer Nancy K. Kopp (D) ― is empowered to cut the state’s budget in real-time.

Franchot said the process of trimming the state’s budget by more than $1 billion during the Great Recession was likely easier than the fiscal stress the board will soon be forced to reckon with during the pandemic.

“That period, as awful as it was ― and it was just horrendously painful ― is going to be like a picnic compared to what we’re going to go through with this coronavirus impact on our state budget,” Franchot said.

Hogan noted that the fiscal estimates released Friday were a “worst-case” scenario that he hoped would not come to fruition.

“Hopefully we will not have to make the kind of cuts [the comptroller] was envisioning,” Hogan said later in the afternoon.

With much of the private sector shut down in Maryland to stop the spread of COVID-19, the state is grappling with never-before-seen figures when it comes to losses in tax revenue and employment.

In a matter of weeks, the state’s new unemployment filings have increased by nearly 5,200%, with more than 235,000 people filing new unemployment claims in just the last three weeks.

“We’ve never seen such a decline. Never,” Schaufele said.

By contrast, it took about 10 months during the Great Recession for the state to see 240,000 job losses.

Even with the sobering numbers, there are some things that may blunt the impact to Maryland’s economy.

While state income tax withholdings are expected to drop by 22%, Schaufele said it was a testament to the strength of the state’s workforce and close ties to the government that the number is not larger.

Maryland will see some financial relief from a federal stimulus package, about $4.9 billion, but that funding is generally intended to enhance safety net programs and cover new expenses, not backfill lost revenues.

The lost revenues and economic downturn will almost certainly have an impact on Democrats’ top priority this year ― a decade-long multi-billion-dollar effort to reform the state’s education system.

That bill, along with more than 650 others passed during the 2020 General Assembly session, were formally sent to Hogan’s office for consideration earlier this week. While his office has not yet reviewed the bills, Hogan said Friday “that it is very unlikely that any bills that require increased spending will be signed into law.”

In response, state Senate President Bill Ferguson (D-Baltimore City) agreed with Hogan that “we will be forced to make hard choices about priorities and values. COVID-19 has changed the world and it has changed Maryland.”

But without specifically referring to the Blueprint for Maryland’s Future, the ambitious education spending and reform plan that the legislature passed last month, Ferguson suggested that it would be wrong for state leaders not to look ahead and bolster the state’s education system.

“This crisis will end, and the cost of containing this crisis cannot be the foreclosure on hope for a better future,” Ferguson said. “Now, more than ever, our decisions about who we are and what we believe about every individual’s God-given potential must continue to be our guide.”

Public health will dictate ‘return to normalcy’

The estimated revenue losses released Friday assume that a stay-at-home order remains in place at least through June 30.

In recent interviews, Hogan and the state’s public health professionals have expressed reluctance to begin lifting social-distancing measures too early, fearing that could cause a new spike in the number of COVID-19 diagnoses in the state.

As of Friday morning, there were 6,968 confirmed coronavirus cases in the state, and 171 Marylanders have died since mid-March.

All officials have said advice from public health experts will dictate the end of measures intended to stop the spread of the virus.

“To be clear, the timeline and pace for when we return to normalcy should and must be dictated by our public health experts, and must be influenced by the health dangers this virus may continue to pose to our citizens,” Franchot said.

By Danielle E. Gaines

Filed Under: Maryland News Tagged With: budget, Covid-19, Economy, franchot, Hogan, loss, Maryland, revenue

House Dems Push Through Proposed Constitutional Change, Strip Dissenter of Leadership Post

March 19, 2020 by Maryland Matters

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Retribution came swiftly and publicly for a member of the House of Delegates Wednesday following a heated vote on a proposal to give the General Assembly more power over the state budget.

In the final hours of the 2020 legislative session, the House was debating a proposed amendment to the Maryland Constitution, which originated in the state Senate, that would grant the legislature the power to move funding around in the state budget.

Several Republican lawmakers rose on the House floor to oppose the measure, arguing that giving the legislature more say over the budget — Maryland’s chief executive has more power over state spending than just about any governor in the U.S. — would invariably lead to more government spending and higher taxes.

They were also incredulous that the House would vote on a Senate bill that hadn’t had a hearing in a House committee — at a time when the State House is on lockdown and the public is having trouble watching legislative proceedings on livestream.

“That’s tyranny, Madame Speaker,” said Del. Robin L. Grammer Jr. (R-Baltimore County).

Del. Geraldine Valentino-Smith

Then Del. Geraldine Valentino-Smith (D-Prince George’s) rose to oppose the vote. She too questioned the wisdom of ramming the bill through when there had been no House hearing, fretting about “the integrity of the process.”

The bill wound up passing, 95-39. Only one Democrat voted against it: Valentino-Smith.

Seconds later, as the House prepared to recess for half an hour, Speaker Adrienne A. Jones (D-Baltimore County) called for a quick vote on an appointment: Del. Michael A. Jackson (D-Prince George’s), she indicated without explanation, would be the new House chairman of the legislature’s Spending Affordability Committee, which studies revenue projections and the state economy.

The previous committee chairman: Valentino-Smith.

“Have you ever seen them strip a man [of a leadership position]?” Valentino-Smith asked a reporter minutes after the vote. “I’m disappointed. I have never seen that type of retribution taken against someone who has spoken out against a committee.”

Jeremy Baker, a spokesman for the Jones, said the speaker’s office had no comment.

A handful of House members privately referred to the removal of Valentino-Smith from the Spending Affordability Committee as “gangster.”

The proposed constitutional amendment itself appears to be gaining traction after several unsuccessful attempts through the years.

Under rules in place for more than a century, Maryland legislators have been limited in their budgetary power. Lawmakers can reduce or eliminate appropriations from governors’ proposed budgets, but are not allowed to increase funding.

The proposed constitutional amendment, if approved by voters in a November ballot initiative, would allow lawmakers to increase, decrease and move money around in the budget, within the restraints of an overall budget cap proposed by the governor.

Despite Republicans’ vehement objections as the bill moved through the legislature this session, the push for a constitutional amendment change giving lawmakers more say over state spending has been championed by Republican legislators in the past — including David R. Brinkley, who is now Gov. Lawrence J. Hogan Jr.’s Budget secretary.

The legislation heads now to Hogan’s desk.

By Josh Kurtz

Filed Under: Maryland News Tagged With: budget, constitution, Maryland General Assembly

House Passes State Budget After Series of Unusual Moves in Truncated Session

March 18, 2020 by Maryland Matters

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The Maryland House of Delegates approved a $47.9 billion budget plan on Tuesday, after a series of extraordinary steps to speed the budget approval process as the state battles the spread of the COVID-19 virus.

“Each year we are faced with a different set of circumstances dictating how we achieve the goal of providing a balanced budget that meets the needs of our state. It is safe to say that the challenges we currently face are unlike any we have experienced before,” House Appropriations Chairwoman Maggie L. McIntosh (D-Baltimore City) said this week. “…We are very aware that the situation that we face with this new virus does not currently have an end date and could directly impact our economy,” McIntosh said.

The budget bill and accompanying Budget Reconciliation and Financing Act maintains more than $1.2 billion in the state’s rainy day fund, and last-minute budget adjustments boosted the unallocated general fund balance to $231.3 million, an effort to give Gov. Lawrence J. Hogan Jr. (R) more flexibility in spending as the state faces unknown fiscal challenges with the spread of the novel coronavirus.

On Tuesday, the House approved an additional amendment that would allow Hogan to transfer up to $100 million from a revenue stabilization account to help with the state’s COVID-19 response.

The bill moves on to the Senate, where final approval without further changes is all but guaranteed.

That’s because the Appropriations Committee and Senate Budget and Taxation Committee met jointly in a historic meeting on Monday to shuffle through about four dozen consensus amendments to the budget bill and Budget Reconciliation and Financing Act. The goal was to pass a final consensus budget without requiring negotiations by a conference committee.

“This is an extraordinary time and it calls for extraordinary cooperation,” McIntosh said at the meeting, sharing a microphone in her committee room with Budget and Taxation Chairman Guy J. Guzzone (D-Howard). ­

The budget measures came to the House floor with more than 90 amendments from the Appropriations Committee, plus an additional 50-or-so consensus amendments agreed to by the House and Senate committees. On Monday, four anti-abortion amendments offered by House Republicans were rejected after a short debate.

On Tuesday, the final budget plan was passed by a wide margin, including support from Republican members of the chamber.

“Our budget committee has taken a budget from our governor and made it better and made it responsible,” House Minority Whip Kathy Szeliga (R-Baltimore County) said, encouraging other lawmakers to take a moment to appreciate the work of the committee.

Szeliga said she was especially pleased that the budget included a projected structural surplus of $67 million in 2021.

Also included in the budget plan is $7.2 billion in funding for public education, including $362 million to support implementation of the Blueprint for Maryland’s Future education reform plan.

The legislative plan restores about $88 million to legislative priorities not funded by the governor. That includes $39.5 million for a proposed rate increase of 4% for community service providers in the Developmental Disabilities Administration, behavioral health providers and Medicaid service providers.

By Danielle E. Gaines

Filed Under: Maryland News Tagged With: budget, general assembly, Maryland

Fithian Responds to Chestertown’s $250,000 Request, CPD Safe from Sheriff Takeover

January 6, 2020 by Daniel Menefee

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As 2019 came to a close, Chestertown Mayor Chris Cerino made a year-end plea to the Kent County Commissioners for a tax differential or rebate in the amount of $250,000 for the town.

A tax differential is a rebate on property taxes town residents pay the county for services like fire, police, street cleaning and planning & zoning.

Chestertown provides and pays for many of these services out of its own budget and town leaders have complained in recent years that the absence of a differential has forced the delay of road maintenance and other infrastructure needs.

“County taxpayers living within the municipal boundaries of Chestertown receive none of these services from the county,” Cerino wrote in his Dec. 19 letter to the Kent Commissioners.

A tax differential exists in the vast majority of Maryland counties in the form of lower county tax rates to town residents or direct cash payouts to municipalities, but Kent is one of three Maryland counties that doesn’t provide a rebate or differential to its municipalities. Chestertown received rebates of $100,000 from 2012 to 2014 to help offset declining tax revenue during the recession. 

Cerino’s letter echoed many of the talking points he and Ward 1 Councilman David Foster made before the commissioners this summer. 

“Put simply, Chestertown residents get far fewer services for the same tax dollar,” Cerino wrote. “They are essentially taxed twice (once by the County and once by the Town) for services that are provided solely by the Town of Chestertown.”

In an interview on Dec. 31, Kent County Commissioner Ron Fithian shot back that the county pays service providers directly, instead of passing the funding through the municipalities. 

Fithian highlighted fire protection, EMT coverage and high-speed Internet as examples of direct support services to the municipalities. He said the annual contributions to Chestertown come to “far more” than $250,000.

He said the county pays $1 million annually to operate eight firehouses and $1.7 million for EMTs and paramedics. He said 40 percent of the calls for EMT services are for Chestertown.

In the county’s current fiscal budget, $128,000 went to the Chestertown Fire Department and $70,000 went to EMT services, Fithian said. In Fiscal 2020, the town contributed $49,000 for fire equipment and $20,000 to the rescue squad.

Fithian highlighted the $7.4 million investment in high-speed Internet in the county and said Chestertown municipal facilities were connected “free of charge” at an initial cost of $65,000 to the county. He said there’s about $10,000 in recurring costs the county will pay to cover 10 town facilities.

Fithian said Kent’s other municipalities have not asked for a differential or rebate.

“I think they understand the contributions we make to them,” he said. 

Fithian said he understood Chestertown’s tight budget, but that it was not a reason for the Kent County Sheriff’s Office to take over the Chestertown Police Department, an idea that Mayor Cerino floated last year to cut costs. 

“I don’t know of a county or town…that at one time or another hasn’t had financial issues,” he said. “You have to make the hard calls if you want to be in charge.”

Fithian reaffirmed that the county is unlikely to support a takeover of CPD and said Cerino and the Town Council are responsible to shore up the town’s budget.

“If you’re going to be the Mayor of Chestertown you gotta’ be the Mayor of Chestertown and make these decisions, good or bad, to best serve your people and pay the bills…”

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Filed Under: Archives, News Tagged With: budget, Chestertown, Chestertown Spy, Kent County

Legislators Look to Attack Structural Deficit in 2020 Session

December 18, 2019 by Maryland Matters

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Despite an expected surplus this budget year, Maryland lawmakers will work during the 2020 legislative session to close an anticipated budget deficit for 2021 ― and that’s before figuring in additional spending for proposed education reforms.

The Spending Affordability Committee, a bipartisan panel of legislative leaders, voted unanimously Tuesday on several recommendations to address and eliminate the predicted deficit for the 2021 fiscal year.

David C. Romans, fiscal and policy coordinator for the Department of Legislative Service’s Office of Policy Analysis, told committee members that current spending and revenue patterns are likely to produce a $206.1 million cash shortfall at the end of the 2021 fiscal year, resulting in a structural deficit of about $419.2 million. That structural deficit is expected to deteriorate further in the future, growing to about $1.2 billion by the 2025 fiscal year.

He recommended that the legislature look at $419 million in budget adjustments ― cuts or establishing new revenues, or a combination of both ― to address the structural budget issue, particularly because current projections reflect a relatively healthy economy with less dependence on government programs.

 “This is kind of a best-case forecast in some respects,” Romans said. “At some point, things are going to slow down a little bit and it will get worse. So we think it’s important that you try to take some action this year.”

The committee unanimously recommended that the legislature maintain structural balance in the state’s final 2021 spending plan, which would position the state to deal with long-term budget challenges, economic uncertainty and allow new investments in education.

While the state’s budget process is largely driven by Gov. Lawrence J. Hogan Jr. (R), the Spending Affordability Committee is charged with making recommendations for state spending, new debt authorization and state personnel levels. Since the committee was created in the early 1980s, the legislature has adhered to the committee’s recommendations in all but one year.

Other recommendations unanimously supported by the committee on Tuesday include maintaining a general fund balance of at least $100 million and a Rainy Day Fund balance of at least 6 percent of revenues. The committee also recommended that lawmakers ratchet up a revenue volatility cap, which generally limits how much the state budget can depend on capital gains tax revenues from Maryland’s wealthiest residents and limits how much of those taxes can be spent in a given year.

The committee also recommends a $1,095 million limit on new general obligation bonds in the 2020 session and $32 million in new academic revenue bonds for the University System of Maryland.

The committee’s final recommendation expressed concern about vacancies in state agencies that are chronically understaffed or deal with public safety or vulnerable populations. The committee noted the more than 2,000 vacant positions within the Department of Public Safety and Correctional Services, where union employees have complained about unsafe conditions in state prisons.

The committee agreed to encourage the Hogan administration to act expeditiously to fill the positions and remove barriers to employment in critical positions. Earlier in the day, Department of Public Safety and Correctional Services Secretary Robert Green said state efforts to fill needed positions in state prisons include an increased starting salary and streamlined hiring fairs.

By Danielle E. Gaines
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Filed Under: Archives, Maryland News, News Tagged With: Annapolis, budget, Education, legislature, Maryland

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