Baltimore County Executive Jim Smith on Tuesday morning proposed a $1.7 billion budget that includes a modest spending increase ? but no new taxes ? and reflects what he called the county and state?s “economic malaise.”
The 2009 budget comes within $977 of the 4.56 percent spending increase cap in light of decreasing county revenues and a sour housing market. In his sixth annual budget message, the Democrat said he did not include anything that wasn?t critical to basic government.
“The people of Baltimore County understand the importance of living within their means,” Smith said. “We all must do so.”
Including one-time expenses, Smith?s budget totals $1.72 billion, about 3.6 percent more than this year?s budget.
More than half of Smith?s operating and $230 million capital budget are dedicated to school construction, including funds needed to complete a new elementary school in the Perry Hall area and $12 million for additions to schools in the Towson area.
For the first time since 2001, Smith did not include cost-of-living adjustments for county employees, a decision teachers are protesting by working to strict contract rules. Smith cited $40 million in state cuts and $8.5 million in federal aid reductions.
“He again stayed with his priorities, which is capital funding over work force development,” said Cheryl Bost, president of the Teachers Association of Baltimore County. “We are going to continue to see people leave.”
Smith was required by binding arbitration to include a $4 million longevity increase for police officers, which he funded in a contingency account to avoid exceeding spending limits. But the council, which can delete items from the budget but can?t add to it, does not have to include the award in the final budget it is expected to adopt May 22.
Police leaders must now lobby lawmakers ? some of whom may be uncomfortable providing a pay step to one employee group but not others ? said Cole Weston, president of the county?s Fraternal Order of Police.
“He seems to be pitting the labor groups against each other as well as the police officers against the legislative branch,” Weston said. “I really think that?s inappropriate.”
Council members praised Smith for offering a lean budget, which also includes a 4 percent cap on property assessment increases expected to save homeowners $171 million next year.
“It?s not a happy moment,” said council Chairman Kevin Kamenetz, a Pikesville Democrat, “but it?s what you have to do when times are tight.”
