Disparity in funding angers leaders in economic engines Virginia and Maryland officials rely on the wealthy Washington suburbs of Fairfax and Montgomery counties as the cash cows of their states but shortchange them when it comes time to dole out money.
While the two counties generate more cash than any other jurisdictions, they get back less than a quarter for every dollar in tax revenue they raise.
| Donor counties | ||
| Virginia’s Fairfax County and Maryland’s Montgomery County get back just a small fraction of what they provide for the state in revenue. Below is a breakdown of how much the two jurisdictions received for every dollar in taxes sent to the state: | ||
| Fiscal year | Fairfax Co. | Montgomery Co. |
| 2005 | $0.19 | $0.18 |
| 2006 | $0.19 | $0.17 |
| 2007 | $0.20 | $0.18 |
| 2008 | $0.21 | $0.20 |
| 2009 | $0.22 | $0.22 |
| 2010 | $0.21 | Not available |
| Sources: Fairfax County and Maryland Department of Legislative Services | ||
As the economic engines of Virginia and Maryland, Fairfax and Montgomery counties are expected to subsidize less prosperous areas, officials said, but the breadth of the disparity angers local leaders.
“We are too much a donor region,” said Fairfax County Supervisor Pat Herrity. “When we have issues we need to make sure we have sufficient resources to fix the problem.”
Fairfax County, home to one-seventh of Virginia’s population, generated $2.6 billion in nontransportation revenue for the commonwealth in 2010, according to county figures, but only received about $546 million — or 21 cents for every dollar sent to the state.
The largest county in Maryland, Montgomery County generates the highest amount of tax revenue of the 24 local jurisdictions — $2.9 billion — but receives the fourth most in state grants.
Local governments, on average, received 46 cents in state aid for each $1 in taxes paid by county residents and businesses in fiscal 2009, according to data released in recent weeks by the Maryland Department of Legislative Services.
Montgomery County received just 22 cents in state aid per each dollar in taxes.
Baltimore City, the fourth most populous jurisdiction, receives the largest share of state money at $1.12 per each dollar it contributes in taxes, followed by Prince George’s County at 66 cents. Put another way: Baltimore City receives $1,895 per resident, Prince George’s, $1,326 per resident and Montgomery County, just $668 for each resident.
Fairfax and Arlington counties in Northern Virginia received $789 and $722 from the commonwealth per resident in 2011, respectively, while Prince William County got $1,209 per resident.
The trend is not sitting well with Montgomery County lawmakers, who contend that the wealthy suburb is encountering a wave of new needs — and lacks a way to pay for them.
“We are reaching a rebellion point in Montgomery County,” said state Sen. Karen Montgomery, D-Silver Spring. “The old perception that Montgomery County has streets paved with gold is no longer true. It’s unfair that the state continues to look to Montgomery to backfill a lot of the needs we have.”
The discrepancy in Maryland would increase next year under a budget proposed by Gov. Martin O’Malley in which half of Montgomery County families would pay higher income taxes to close a $1.1 billion budget gap. He has called for capping tax deductions and for those making more than $100,000 annually.
Montgomery County Councilman Marc Elrich, D-at large, said he accepts the notion that less affluent jurisdictions should receive more aid than wealthier counties. Yet, he is concerned Montgomery has increasingly become a “cash cow.”
“If you want us to be the economic engine of the state, we have to get support,” he said, explaining the county’s glaring need for transportation funding has harmed its economic output. “If you don’t do that, it’s like shooting yourself in the foot. How do you expect us to produce for you?”
But some Northern Virginia lawmakers caution it’s not fair to ignore how the money benefits Fairfax, even though it’s not spent there.
“How do they value the amount of money it costs to put sexually violent predators from Northern Virginia in southwestern prisons?” asked Del. Dave Albo, R-Springfield. “How do you value the number of kids that come up out of Northern Virginia to go to colleges in other parts of the state? You cannot calculate it.”
