Advocates Lobby County Council on Education Budget

Education advocates were out in force Tuesday night—relatively speaking.

But then again, the leaders of PTA groups and parents of school children are customarily out in force when the Baltimore County Council holds its annual public hearing on the budget.

Some, like Kelli Nelson, have come to the council so many times that political veterans, such as council Chairman John A. Olszewski Sr. and Councilman Kenneth N. Oliver, are greeted with big smiles and a perky wave in which all five fingers wiggle as she takes her seat to testify, with a "yeah" to punctuate her arrival.

And each year, it's the same message.

"I'm here to testify in support of the proposed budget made by County Executive Kevin Kamenetz," said Nelson. "Especially the proposed increases for the office of special education."

Nelson was one of only four speakers who signed up to speak on the budget Kamenetz proposed nearly two weeks ago. All of those who spoke asked the council to leave education funding intact.

The council cannot add or move money around in the budget and can only make cuts. Education spending, at about $1.3 billion, makes up nearly 50 cents of every dollar spent in Baltimore County annually.

It's been more than 20 years since the council attempted to make a cut in the school system budget.

Nelson, speaking before the meeting, said she knew the council's record when it comes to school system budgets but comes every year "just to make sure."

So it was with Marlo Lemon, a Randallstown resident and the mother of 6-year-old twin boys—one with language difficulties and another who is autistic—who have benefited from intensive special education services offered by the county.

Lemon asked the council to support increases in special education spending that will help other children as it has helped her sons.

"Now I can say my boys are succeeding as they enter kindergarten," said Lemon, who also has previously testified before the council on behalf of education funding.

If anything could be called surprising about the public hearing Tuesday, it had less to do with who came to speak than who didn't—particularly advocates of lower property taxes.

No one signed up to speak against the council's proposal to keep the property tax rate at $1.10 per $100 of assessed value rather than following the constant yield tax rate guideline to reduce the property tax to $1.0943 cents per $100 of assessed value.

Not reducing the tax rate for next year would generate slightly more than $4 million more in property tax revenues than in the current budget year.

Simply, the constant yield tax rate is the rate government would need to charge in order to pay for essentially a flat budget. The issue has been standard fare for many conservative county residents to discuss at past public hearings on the budget.

Their absence did not go unnoticed.

"I was a little surprised," Olszewski said. "I thought for sure we'd have someone come and say we're raising the tax rate even though we're not."

'Sobering' Budget News

The council listened to public testimony on the same day the county auditor briefed the seven members on the budget.

Kamenetz's proposed $1.6 billion general fund budget for the year that begins July 1 is about two-tenths of a percent larger than the budget for the current year. It's a full 2 percent lower than the budget growth approved by the council's own Spending Affordability Committee earlier this year.

Anticipated revenues are expected to fall between $40 million and $54 million short of the budget. To cover the shortfall, the county will use money from a surplus fund.

Kamenetz's proposed budget also expects to draw on surplus money for ongoing expenses to the tune of nearly $63 million. This represents a dramatic change in how the county has balanced its budget and its unwillingness to pay for ongoing expenses with what is considered to be "one-time money."

Elizabeth Irwin, director of fiscal analysis for the auditor's office, said much of the county's fiscal problems are related to the recession. Some are related to decisions the county made, such as cost of living increases added in January 2010, an underfunded plan to deal with mandated retirement benefits costs, growing payments on county bonds and the county's property tax structure.

The property tax and income piggyback tax have not been raised in about two decades.

Many of the newest council members found the budget briefing a mixed bag of good news about the county's history of strong fiscal management and the financial storm that looms on the horizon.

"It's sobering but at the same time it's not unexpected," said Councilman Tom Quirk, a Catonsville Democrat who is also a financial planner. "There are tough times, and tough choices will have to be made."

Many of Quirk's fellow freshman council members agreed.

"It's depressing," said Councilman Todd Huff, a Timonium Republican and businessman. "It's really enlightening to see the reality of where things stand."

Councilman David Marks, a Perry Hall Republican, said the presentation reinforced that the county has been managed well, both before and during the recession. Still, there were reasons to be concerned, including a "sluggish growth in property tax revenues and growing debt service."

"The things that are picking up in the economy don't seem to be affecting us," Marks said, adding that this year's budget could be setting the table for "draconian cuts" in two or three years.

The council begins two weeks of departmental budget hearings at 2 p.m., May 2, in the County Council conference room. The council is scheduled to approve a final version of the budget on May 26.