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MACo Leaders Say

“No More Cuts to Local Government”

County leaders called for an end to massive cuts in State Aid to Local Government during a Press Conference  March 3 in Annapolis.  County elected officials said they have taken their fair share and it was not acceptable to “pile on more” as a means to address the State’s funding challenges.

“MACo President and Harford County Executive David R. Craig, said while he understood the State’s fiscal troubles, he hopes that “members of the General Assembly don’t misconstrue flat funding [in the Governor’s budget] to mean that local governments have not been cut.  We’ve been hit hard and it just isn’t fair to come after us for more cuts to get through the next fiscal year”.

Further,  “There have been some feelings that county governments are awash in money, that we have huge fund balances, that we have not had to do anything strange to our budget or damaging to our budget.” But, he said that was not true and cuts to local aid in the current year are “being carried over into this year’s proposed budget” and include an additional $23 million in reductions.

He added that counties are receiving revenues at about the same level as they did in 1984 — excluding money for schools — and that many counties are laying off or furloughing employees to help balance the holes in their budgets.

Whatever cushion local jurisdictions may have been able to create through these budget actions was whited out by the February snowstorms, said MACo Executive Director Michael Sanderson.

County leaders expressed frustration that while education funding is being substantially increased, it is being funded at the expense of other critical local government services, such as public safety.

“When the State talks about aid to local government, they mix apples and oranges, counting schools and counties exactly the same,” said Mr. Sanderson.  He noted, “that’s not a fair picture — school funding is going up again, while they are slashing support for county governments — things like our local roads, police departments, and public health workers.”

Contact:  Ellen Clarke

EPA Speaker Discusses Bay TMDLs

Katherine Antos from the U.S. Environmental Protection Agency’s (EPA’s) Chesapeake Bay Program Office addressed the  Legislative Committee on March 3.  Ms. Antos discussed the forthcoming total maximum daily load (TMDL) requirements for the Bay.

TMDLs are limits on the amount of nitrogen, phosphorous, and sediment that can be discharged into the Bay or a tributary of the Bay.  All of the Bay states and their local governments will be  required to abide by these limits, which will vary by watershed.  Limits will be set for both point and nonpoint sources to meet Bay water quality standards. 

Ms. Antos noted that final TMDL numbers will be released in December.  The states must have the first phase of their Watershed Implementation Plans complete by November. 

The Plans will describe how the State and local governments will meet the TMDLs, including two-year milestones to assess progress.  MDE will be the primary implementing State agency.

Ms. Antos also discussed the potential consequences for failing to meet the milestones.  She stated that the most likely consequences would be the denial of federally issued permits, revocation of a state’s permit issuance authority, and the withholding of federal funding for environmental programs.

Finally, she noted that technical and potential monetary assistance may be available from the federal government. For more information, visit the EPA Chesapeake Bay TMDL website at:   http://www.epa.gov/chesapeakebaytmdl/ or the MDE TMDL website at: http://www.mde.state.md.us/Programs/WaterPrograms/TMDL/index.asp.

Contact:  Les Knapp Jr.

Renewable Energy Grants Application

Deadline - March 26

The Maryland Energy Administration (MEA) has received significant funding through the American Reinvestment and Recovery Act (ARRA) to promote clean, affordable, and reliable energy.  As part of this initiative, MEA has set aside a portion of this funding to promote the installation of renewable energy systems on public buildings throughout the state through Project Sunburst. 

Counties have a short deadline of March 26 to submit the Project Identification Form to MEA for consideration.

This is an opportunity for counties to further their green agenda at virtually no cost.  There is no upfront capital investment and the county would be buying clean energy at or below existing electricity rates.

In general the process includes:

•   Determining if county buildings qualify

•   Submitting application to MEA by March 26

•   Signing partnership agreement with MEA

•   Issuing RFP due May 14

•   Signing contract with solar developer

           for installation and financing

 For more information, and to access the Form and instructions, visit http://energy.maryland.gov/sunburst.asp

Contact:  Michele Dinkel

MOE Waiver Penalty Bill Passes Senate

The Senate passed SB 476, a bill that would waive the multi-million dollar State penalty imposed on two counties for failing to meet its maintenance of effort (MOE) requirement for education.  The bill now moves to the House for consideration.  This action was the first step taken by the legislature in considering the burdens of counties to fund obligations.

The Baltimore Sun reported comments from county officials, reinforcing the urgency of the legislation:

“Three frustrated county executives testified at theWednesday hearing that the state school board had set waiver requirements far too high, seemingly making only the total collapse of a tax base as reason enough to grant one.

“None of us are proud of ourselves for being here,” said Wicomico County Executive Richard M. Pollitt Jr. “But these are unprecedented times, and we’ve cut our other departments so drastically. We have to open other doors that have been kept closed. We’ve put off cutting education as long as we can.”

Because of the school board’s denial, Montgomery County schools are to be docked $24 million in state funding this year. The Senate last week overwhelmingly approved legislation to waive that penalty, a proposal the House of Delegates is also expected to pass.

But  MACo Executive Director Michael Sanderson  said Montgomery’s experience pointed to the need for a “release valve” in tough economic times such as these. “We know this is going to be another rough year,” he said.”

Contact:  Michele Dinkel

MDE Opposes $18M Shift

for Ground Water Study to Counties

MDE stated its opposition to a proposed cost shift to local governments of two important ground water studies already underway at a department hearing.  The Department contacted MACo directly to inform them of their opposition and requested dissemination of their budget statement, excerpts of which are listed below:

“The Department does not agree with the recommended reduction. Despite the increasing pressure on the State’s general fund, the Governor recognizes the critical importance of basic scientific information to ensure that Maryland continues to have a sustainable fresh water supply and has elected to maintain level funding for these important studies in FY 2011. These studies are essential to proper management of the State’s current and future water supplies.

A reliable source of clean fresh water is a fundamental requirement for both good public health and economic health. Between now and 2030, Maryland’s population and demand for fresh water are projected to increase by 15 to 20 percent State-wide, with higher rates in the faster growing parts of the State. These studies provide critical scientific information to ensure that our State’s fresh water sources are properly managed to maintain adequate supplies to support our existing population and meet the demands of continued economic growth and development.

It is not feasible for local governments to pay for these studies. Aquifers cross many boundaries and allocation of expenses would be problematic. Local governments also have no source of funding for this type of scientific assessment work. This is a State responsibility.”

Contact Les Knapp Jr.

Counties Lose First Round

in ARRA Cable Aid Funding

According to the Baltimore Sun, two county groups lost out on federal stimulus money for installing broadband fiber-optic cable.

The One Maryland Broadband Plan, representing Carroll, Howard, Anne Arundel, Baltimore, Frederick, Prince George’s and Montgomery counties, plus Baltimore City and Annapolis, did not make the final cut for the first round of funding.

Neither did the second group, the Maryland Broadband Cooperative. That group includes rural Maryland counties and is described on its website as a “member-owned and operated universal access, fiber optic network designed to deliver an advanced, world-class broadband network across the rural communities of  Eastern, Southern and Western Maryland fostering economic development”.  The Chairman is Worcester County Commissioner Virgil Shockley.

A spokesman for the National Telecommunications and Information Administration, said there were more than 1,800 applications, but just 58 awards in the first round. Another $2.6 billion is up for grabs in the second round.

Howard County Executive Ken Ulman said “It’s pretty shocking that Maryland was left out.” He said his staff was taken aback since Commerce officials called and e-mailed daily for more information or clarifications.

Coppin State University in Baltimore received $932,000 from the first round grants.

Contact: Ellen Clarke

How Healthy Is Your County?

NACo reports that the Robert Wood Johnson Foundation in collaboration with the Wisconsin Population Health Institute, released a national ranking of health for all U.S. counties.   Prince George’s County Health Officer, Donald Shell M.D. recently participated in a County Health Rankings panel to discuss the ranking results and the spotlight it places on Maryland counties.  Prince George’s County was ranked amongst Maryland’s least healthy counties.

“Health advocates and state lawmakers in the county, a suburb of Washington, are proposing state legislation to place a moratorium on new fast-food restaurants in areas of the county with a ‘high index of health disparities,’ such as high rates of obesity and diabetes,” said Dr. Shell.

State Senator David C. Harrington added, “We’re saying where there is health data that suggests that there should be interventions, that we should put a stop to permits.”

Contact:  Emily Hollis

Bill Status - March 8

•  SB 476-MOE Waiver Penalty

Passes Senate 44-3.  House must act before March 28 before Comptroller begins to withhold monies. MACo supports bill.

•  HB 474-Smart, Green, and Growing – Sustainable Growth Commission

Passed House in amended form 110-28.  Senate EHE Committee heard bill 3-3.  MACo supports with amendments.

•  HB 58-State Government – Open Meetings Act – Definition of Public Body

Unfavorable in House HGO Committee. MACo opposed the bill.

•  HB 493-Land Use – Development Rights and Responsibilities Agreements

Unfavorable in House ENV Committee. MACo opposed the bill.

•  SB 99-Junk Dealers and Scrap Metal Processors-Required Records

Passed Senate in Amended form 47-0. House ECM Committee heard bill 2/16. MACo supports with amendments.

•  SB 156- Environment – Recycling – Apartment Buildings and Condominiums Unfavorable-Senate EHE Committee.  MACo opposed bill.

•  SB 174- Counties – Local Laws – Digital Copies

Favorable with Amendments- Senate EHE Committee 42-0.  Moving to Senate floor for vote. MACo supports with amendments.

•  SB 257- Vehicle Laws – Disposition of Traffic Citations

Unfavorable in Senate JPR Committee. Bill withdrawn.

          Contact:  Michele Dinkel

Bill Hearings This Week

SB 141 -  (BRFA) Counties Cut Deeply

MACo leaders testified last Wednesday in the Senate Budget and Taxation Committee on the Administration’s Budget Reconciliation and Financing Act (BRFA), SB 141. MACo First Vice President, Charles County Commissioner Wayne Cooper and Executive Director Michael Sanderson offered testimony acceding to the slate of cuts presented as part of the budget plan, but warning against additional reductions.

Commissioner Cooper told the Committee that,  “we’re just not going to be able to handle any more cuts  . . . we just can’t.” MACo also submitted testimony on two other broad budget-reconciling bills, SB 840 and SB 1004.

HB 1318 -  Death Benefits Bill

MACo Associate Director Les Knapp and county attorneys were the sole opposition against HB 1318 in the House Economic Matters Committee on March 3.  The bill, sponsored by Delegate Carolyn Krysiak, alters the death benefit paid to a surviving spouse, child, or other dependent of an employee covered by workers’ compensation who dies due to an occupational disease or work-related accident.

MACo panelists expressed concern that while the bill tried to make the death benefits system fairer and less costly for most payors, counties may end up paying more due to the fact that counties are often self-insured and employ more high-risk personnel, such as police and firefighters, who enjoy broad presumptions about compensable diseases assumed to be related to their occupation.  Delegate Krysiak agreed to consider amendments that would address MACo’s concerns.

HB 1280 -  Firefighter Workers’ Compensation Presumptions

MACo Associate Director Les Knapp and county attorneys and health officers testified in opposition to HB 1280 before the House Economic Matters Committee on March 3.  The bill, sponsored by Delegate Brian Feldman, would greatly expand the number of cancers and diseases subject to a workers compensation presumption for firefighters and rescue workers.

MACo panelists argued that the cancers and diseases covered by the bill had numerous causes that were beyond a county’s control to manage and impose a significant fiscal burden on county governments when counties are struggling with their own budget challenges.  The panel also noted that Maryland’s burden of proof regarding presumptions is much higher than in other states, making it very difficult for a county to challenge or rebut.

SB 225 - Library Collective Bargaining

MACo Associate Director Les Knapp and library associations testified in opposition to SB 225 before the Senate Finance Committee on March 4.  The bill, sponsored by Senator Nancy King, would authorize non-management library employees to form employee organizations and engage in collective bargaining.  The bill also includes mediation and limited binding arbitration provisions.

Mr. Knapp stated that the bill imposed a costly and unnecessary mandate on both the counties and public library systems when they are facing signficant State aid reductions and budgetary challenges.  He described how counties have been recently criticized for giving multi-year pay raises that they are legally bound to provide under a collective bargaining agreement. 

 The Maryland Library Association and other  county library association representatives argued that the decision to organize should be left up to each individual jurisdiction and that process should not be forced on them.

The bill’s cross-file, HB 881, is set for a March 9 hearing before the House Appropriations Committee.

HB 1155 - Expanding Benchmarks  in CTP

MACo Executive Director Michael Sanderson offered testimony in opposition to HB 1155 in the House Ways and Means Committee last week. The bill would require counties that request major capital projects in the Consolidated Transportation Plan (CTP) to provide a purpose and need statement that includes a rigorous list of priorities and factors to be considered when ranking major capital projects.  This would include describing how the project addresses climate action plan goals and potential land use changes.

Mr. Sanderson testified, “Although MACo does see value in ensuring that projects meet broader statewide goals, HB 1155 goes too far in replacing a productive and collaborative process with one deeply enmeshed in one-size-fits-all indicators and ill-fitting criteria.”

HB 805 - Extending Homestead Credit to Seniors with Second Properties

MACo Associate Director Andrea Mansfield offered opposing testimony on HB 805 last week.  The bill would extend the Homestead Property Tax Credit (Credit) to the second home of a homeowner who is at least 65 years old.  The second home cannot be rented to or occupied by someone other than the homeowner, and the second home cannot be used for establishing residency to receive State, county, or municipal services.

Ms. Mansfield testified that this would depress the property tax base, by providing an inappropriate advantage to homeowners who can afford second homes.  MACo believes this action is unfair to other taxpayers, whose responsibilities to pay for public services would only increase as a result.

HB 829 -  Traffic Ticket

MACo Associate Director Les Knapp joined a broad coalition of State, county, and municipal law enforcement agencies in support of HB 829 before the House Judiciary Committee on March 3.  The bill, sponsored by Delegate Sally Jameson, would require a person receiving a payable traffic citation to affirmatively request a trial date in District Court, rather than having one be automatically scheduled.

Mr. Knapp noted that Maryland is the only state  that still automatically schedules court dates for traffic tickets.  He stated the bill would result in significant savings for both the State and local governments by not having police officers waiting in court for people who do not show up.  Instead, law enforcement resources could be directed towards more important public safety concerns.

HB 817 - Heavy Equipment Gross Receipts Tax

MACo Associate Director Andrea Mansfield and the Chief of Treasury from Prince George’s County, Stan Willis, testified before the House Ways and Means Committee on HB 817.  The bill would grant a personal property tax exemption for heavy equipment used for short-term lease or rental, and would grant local governments the option to enact a new gross receipts tax on the use of that equipment.  While widely described as “revenue neutral,” the bill as introduced completely repeals a current tax but, in return, only offers counties an option to pass local legislation to levy a new, explicitly capped, tax with largely uncertain net effect.

Ms. Mansfield testified that MACo could only support the bill if amended to make it a true local option and truly revenue neutral.  Mr. Willis agreed with this position and added that amendments also need to clarify the business entity to which the gross receipts tax applies, the entity renting the equipment or the entity holding the equipment.

HB 1120 - Towing Bill Preemption

MACo Associate Director Andrea Mansfield offered testimony on HB 1120 before the House Environmental Matters Committee.  The bill would implement the recommendations from the Task Force to Study Motor Vehicle Towing Practices.  

MACo amendments offered at the hearing would ensure that the bill does not preempt counties that regulate towers and removes a section that refers to a licensing process.  This could be problematic because a number of jurisdictions do not have a licensing process in place for towers.