P.G. Council OKs $2.65b budget, nixes pay raises

Published May 26, 2011 4:00am ET



Prince George’s County residents will not pay higher taxes or fees under the budget the Prince George’s County Council adopted Thursday, but some county employees will go without pay raises promised them last year. The council voted unanimously for the $2.65 billion budget for fiscal 2012. The budget, a $31.2 million spending increase from 2011, goes into effect July 1.

About two-thirds of the budget, or $1.6 billion, will be spent on Prince George’s County Public Schools, including $18 million more than County Executive Rushern Baker had proposed.

MontCo passes budget
The Montgomery County Council formally approved a $4.4 billion budget that will raise property taxes and fees on residents and force government employees to pay more for benefits to fill a $300 million shortfall.
The plan cuts $107 million from the school system’s budget request and calls for school employees to pay more for health benefits and take a reduction in pension benefits, along with other county government employees.
Government workers will pay 5 percent more for point of service health care plans, 2 percent more for defined benefit pensions and invest 2 percent more next fiscal year for 401(k)-style arrangements. – Hayley Peterson

County employees will not receive 2 percent raises that former County Executive Jack Johnson promised last year to 1,400 employees with the American Federation of State, County and Municipal Employees union. The County Council struck down the agreement last week in a 5-3 vote.

Instead, the council wants to tap about $6 million in a reserve fund to give $750 bonuses to the county’s 6,000 employees.

It’s the third year in a row county employees have gone without pay raises.

“This would offer a clear demonstration of support for county employees without negatively impacting our long-term finances,” said Council Chairwoman Ingrid Turner.

The bonuses aren’t included in the budget as negotiations with the unions continue.

The budget also includes funds for a new county mediator to settle landlord-tenant disputes, nearly $200,000 for six property code inspectors with the Department of Environmental Services, and a contingency of about $50 million for an economic development incentive fund to bring more business to the county that still needs legislative approval.

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