Montgomery County lawmakers frustrated by their attempts to negotiate a fiscal 2009 budget blasted the Maryland legislature’s efforts, saying the county has been unduly burdened with declining funds, rising taxes and unfriendly legislation.
“There’s not a lot of good news out there,” said Council President Mike Knapp, citing declining federal revenues and the state’s new income tax on the almost 7,000 people in the state who make more than $1 million, 41 percent of whom live in Montgomery County. The new tax helped to replace money lost from the repeal of a computer services sales tax.
In anticipation of Tuesday’s Council discussion of county agencies’ capital budgets, Knapp said no agency would be thrilled with the expected outcomes. Montgomery County Public Schools, with the largest capital budget at $1.5 billion over six years, might be unhappier than most.
“When the state ties our hands and further contributes to local income tax, it only makes our task as a local government harder,” Knapp said.
He commended the repeal of the computer services tax but said the General Assembly forced the county into a situation of funding the state’s financial shortfall.
“If slots doesn’t go through in November, what’s left?” Knapp asked.
Georgette Godwin, president and chief executive officer of Montgomery County’s Chamber of Commerce, also praised the repeal of the computer services tax but said the new income tax negatively affects small-business owners, many of whom file their business taxes on their personal tax return.
In effect, not all the people affected by the new tax are actually making more than $1 million, Godwin said.
“This hits small-business owners disproportionately, and I’m not sure that’s being said,” Godwin said.
Also Tuesday, Councilwoman Valerie Ervin voiced concern for federal dollars not coming into the schools.
“I’m very concerned about what I’m hearing about federal Title I funding [for low-income students],” Ervin said.
Montgomery County’s 28 poorest schools are expected to split less than $20 million in federal funds next year, compared with 23 schools splitting about $22.5 million this school year.
The state and federal government “think demographic changes in Montgomery County are still theoretical,” Ervin said. “But they’re happening, they’re here and now.”
