Montgomery County residents would fork over the bulk of money generated by Maryland Gov. Martin O’Malley’s plan to increase income taxes on the wealthy, but County Executive Ike Leggett supports the proposal as long as the county gets something back from the state.
The General Assembly will report to Annapolis today for the start of a special session designed to address the state’s gaping $1.7 billion budget shortfall. O’Malley has proposed a 20 percent increase in the state sales tax, raising income taxes for residents earning more than $150,000 a year, and using slot machines to eliminate the deficit.
“The county executive has already been in touch with Senate President [Thomas Mike] Miller [Jr.], Speaker [of the House Michael] Busch and the governor,” Leggett spokesman Patrick Lacefield said. “He feels he has communicated what he needs to communicate about the county’s perspective. Montgomery County is happy to contribute to the state budget and getting us out of the hole, but we need to see a return as well.”
Leggett has talked to the governor about a number of funding needs, including transportation money and a cost-of-living education adjustment for the county, Lacefield said.
The county executive will be in Annapolis for much of the session, working with the county’s delegation to discuss how the proposals will affect the jurisdiction, Lacefield said.
The governor’s plan would reduce tax rates for most Maryland residents, but would increase income taxes from 4.75 to 6 percent for those earning more than $150,000 and to 6.5 percent for those making more than $500,000.
A report from the state comptroller’s office said Montgomery would supply 80 percent of the money generated by O’Malley’s incometax package.
“Obviously there is a hole that has been dug in terms of the structural deficit, and everybody has to pitch in to fill that hole,” Lacefield said. In principle, Leggett believes in a progressive income tax rate, but questions the extent to which O’Malley wants to raise the rate, he added.
Marvin Weinman, president of the Montgomery County Taxpayers League, said he doesn’t hear much opposition to the idea of graduated income tax rates, in which wealthier residents pay more.
“It remains to be seen what we’ll get in return,” Weinman said. “There are things that are going to have to be done, because currently we have a huge tax shortfall just in the county itself.”
Montgomery officials say the county has a projected budget deficit of $308 million, excluding any cuts in state funding.
“The rest of the state sees Montgomery County as a goose with a golden egg,” Republican Party Chairman Tom Reinheimer said. “There are only so many times you can beat that goose and still expect it to lay the golden egg.”
State Sen. Rona Kramer, chairwoman of Montgomery’s Senate delegation, said Leggett has made it clear to state officials that Montgomery County has major needs of its own.
“We couldn’t possibly get enough back from the state to compensate for what we’re being asked to pick up [in income taxes],” she said.
