MontgomeryCounty officials are slamming new state proposals that would place a burden on cash-strapped localities to pay off Maryland’s gigantic teacher pension shortfall. “As it stands now, no number is acceptable,” said County Executive Ike Leggett, during a breakfast meeting with County Council members Tuesday. Counties would pay half of all teacher pension costs — now funded entirely by the state — or half a billion dollars in fiscal 2012 through one of several proposals the state’s pension commission is analyzing. Under the plan, Montgomery would fork over an extra $99 million.
Leggett and other county officials implored state leaders not to treat the wealthy Washington suburb as the state’s ATM during the annual Committee for Montgomery Legislative Breakfast in Bethesda.
“We can’t continually ask our residents to disproportionally sacrifice to balance the state budget, and it is fundamentally unfair to ask our residents to pay more for a system that we have no control over,” said Council President Valerie Ervin.
The cost of teacher pensions has soared by 159 percent in the last eight years, while state revenues rose 39 percent.
At the same time, Montgomery lawmakers are pressing Maryland officials to scrap the state formula for mandated education funding. The county has to submit a budget that is $83 million, or nearly 6 percent, above the $1.4 billion contributed to the schools this fiscal year — regardless of its fiscal situation.
And with Montgomery facing a $300 million shortfall, county officials say a commitment of that magnitude would be impossible. Schools Superintendent Jerry Weast is set to present his proposed budget on Wednesday.
Montgomery and Prince George’s counties would feel the pinch under the most onerous plan for counties being weighed by the pension commission, with the Washington suburbs picking up 35 percent of the bill.
Another plan would shift 40 percent of retirement costs on to counties — or $20 million in Montgomery’s case.
Members of the state’s pension commission plan to vote on the pension proposals Monday.
