Baltimore County Executive Jim Smith Monday proposed a $2.53 billion budget that increases spending without increasing taxes but includes controversial, cost-cutting changes to employee benefits.
The spending plan represents an overall 5.8 percent increase from this year?s operating budget, a more modest growth compared with prior budgets, officials said. The proposed budget is within spending affordability limits set by the County Council, Smith said in his fifth annual State of the County address in Towson.
“Over the years, Baltimore County executives and county councils have presented county taxpayers with budgets that strongly support education, public safety and quality of life improvements,” Smith said. “And we?ve done that without burdening future generations with debt they cannot pay.”
More than half of the proposed budget, which takes effect in July, supports the school system ? including 101 new teaching and staff positions and funds that respond to needs identified in a recent independent audit. Smith reserved about $3.5 million for a new 540-seat academy for students with behavioral problems and $1 million for the completion of a dental hygiene lab at the county?s community college.
Smith also proposed a $703 million capital budget, almost one-fourth of which is dedicated to school construction. Funds are included for the systemic renovations or additions of 17 schools and $35 million for major maintenance projects.
The budget also includes $45 million to replace the county?s emergency communications system, and more than $12 million for libraries, community centers and parks.
Those projects won the praise of council members, who are expected to adopt a final budget May 24. Councilman John Olszewski Sr. said he supports the budget, particularly funds for a community center in Watersedge.
“You have to have priorities,” Olszewski said. “Everything can?t be funded, but you ask for everything.”
Smith?s biggest challenge was negotiating retirement changes for employees, including a proposal that would require employees with fewer than 30 years of service to work until they are 65 instead of 60 to receive full benefits, he said.
Citing spiking health care costs and new federal regulations requiring governments to fund retirement benefits on an accrual basis, county budget director Fred Homan said the county needed to create incentives for employees to work longer.
The county also needs to prepare for possible cuts in state funding as legislators begin to tackle a potential $1.5 billion deficit, he said.
“Adjustments at the state level may impact us locally,” Homan said. “If you don?t estimate yourself conservatively, you?re going to find yourself in trouble come next year.”
If adopted by the County Council, the property and income tax rates will remain the same or lower than rates for the past 18 and 14 years, respectively. Smith is also calling for the continuation of a 4 percent assessment cap, expected to save taxpayers an estimated $118 million.
The council last year reduced the property tax rate 1.5 cent, a move several members said Monday is unlikely to occur again this year.
“Considering the commitment to education along with the commitment our employees, firefighters and police officers, I just don?t see a significant decrease to afford a tax rate cut,” said Council Chairman Sam Moxley, a District 1 Democrat.
Where the money comes from
» Non-county funds generated by schools, libraries, social services: 29 percent
» Property tax: 28 percent
» Income tax: 24 percent
» Service taxes: 6 percent
» State aid: 4 percent
» Federal aid: 3 percent
» Fund balance: 2 percent
» Miscellaneous: 4 percent
Where the money goes:
» Schools, libraries, colleges: 61 percent
» Public safety: 12 percent
» Debt service, retirement, social security, insurance: 12 percent
» Human, recreation and community services: 8 percent
» Public works: 4 percent
» General governent: 2 percent
» State mandated: 1 percent
Source: Baltimore County Office of Budget and Finance
