If the state decides to freeze teacher retirement money, Anne Arundel and Howard school systems agree that an alternative funding source is needed.
“For us, if the reductions go through, it?s an expense we?re going to have to pick up,” said Anne Arundel school system spokesman Bob Mosier.
“That?s another expense the school system would have to find another funding source for,” said Ray Brown, Howard school system?s chief operating officer.
Gov. Martin O?Malley recently released the state?s “doomsday” budget, which details proposed cuts to address the $1.7 billion budget deficit if his tax plan is not approved.
Out of the proposed $63 million that could be withheld statewide for teacher and public library retirement benefits, Anne Arundel and Howard are facing a more than $4 million freeze each.
The teacher retirement plan is paid by the state. The employee pension, employee retirement and teacher pension plans are paid at the county level, said Susan Bowen, Anne Arundel school system?s director of budget and finance.
“On the information I have now, it looks like the state?s phasing their contribution out,” she said.
The state contributed $35 million to Anne Arundel?s teacher retirement system in fiscal year 2007, Bowen said.
In Howard, the state contributed $38 million for teacher retirement benefits in fiscal year 2008, Brown said.
Bowen and Brown saidthe effect would depend on the breakdown between public library employees and teachers.
Bowen and other school officials are still analyzing all the information and couldn?t get very specific with the numbers.
“It could be bad, but how bad is bad,” Bowen said. “We just don?t know.”
BY THE NUMBERS
Proposed reductions in state-funded teacher and public library employee retirement funding:
Howard: $4.22 million
Anne Arundel: $4.98 million
Source: Gov. Martin O?Malley
Teacher and employee retirees:
Howard: 293 (2003-2007)
Anne Arundel: 535 (2002-2006)
Note: Anne Arundel includes other school-based personnel such as guidance counselors; Howard includes only teachers.
Source: Howard and Anne Arundel school systems
