County Executive Ken Ulman has a plan for saving Howard more than half a million dollars.
By having county staff collect the recordation tax ? rather than paying the state to do so ? Howard officials expect to reap $600,000, Ulman said Tuesday.
“We are constantly looking for new, creative ways to save money,” he said at the State of the County address, hosted by the Chamber of Commerce.
The shift is one of several moves Ulman is making in the face of declining revenue and state budget cuts. Others include:
» Investing in technology.
» Pooling county employees to boost bargaining power andnegotiate better health benefit rates.
» Closing the GTV television studio, which is expected to save $500,000.
“We are always looking for more efficiencies,” he said, adding it will help Howard absorb state cuts, which are already nearly $10 million with more expected.
The clerk of the court, a state office, collects Howard?s recordation tax, which is enacted when a deed or lien on a property is recorded. The state charges a 5 percent fee, which is expected to cost Howard $875,000 this year, Ulman said.
Having county finance staff collect the tax would cost about $250,000 a year, he said.
“The recordation tax can be complicated, and it does take up processing time, so more staff will definitely be needed,” said Finance Director Sharon Greisz.
A few counties, such as Frederick and Anne Arundel, collect the tax, she said. Howard officials are aiming to begin in July, given time to get staff in place and prepare titling companies and others for the change.
Ulman also plans to save more than $2 million each year through technology upgrades. For example, investing in a fiber-optic wide-area telecommunications network, will mean reducing the cost of phone service from $20 per month per phone line to $4, he said.
Howard also plans to replace computers every three to four years, rather than every 10 years, which will save about $70,000 a year in energy costs, said Technology Director Ira Levy.
