September 3, 2010

Legislative News - 2009 Session Archive

  • News Articles
  • Media Coverage
  • Major Issues
  • Information posted on the website home page during the 2009 General Assembly Session has been archived for your convenience on this page. You can find news articles, media coverage of local government legislative issues and the MACo Press Conference, and staff updates on Major Issues posted throughout Session here. As always, if you have any questions or need assistance finding information on the website, please contact MACo staff.

     

    News Articles

    Overview of MD Local Governments

    A useful compilation of financial and demographic information, including tax rates, revenues, school funding, fund balances and debt capacity  for all MD county governments is published annually by the MD Dept. of Legislative Services. Click here for Overview

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    Counties Denied MOE Waivers

    May 15 . . . The MD State Board of Education has rendered a decision to deny requests for Maintenance of Effort (MOE) waivers for three counties including Montgomery, Prince George's and Wicomico Counties for FY 2010. Counties were permitted to apply for a temporary or partial waiver from the law requiring MOE for school appropriations. Originally, 8 counties submitted a request by April 1, 2009, but 5 counties withdrew their request from consideration. See decisions for Montgomery, Prince George's, and Wicomico counties. Back to Top

    Highway User Revenue (HUR) Distributions Released for FY 2010

    The Maryland Department of Transportation has completed and released its revised distributions for the coming year's highway user revenues (HUR). HUR represents the local share of motor fuel and vehicle titling taxes shared with local governments, and was a major target for reduction in the FY 2010 budget plan adopted this legislative session. Due to the complexity of the reductions, including some made during the waning days of the session, a jurisdiction-by-jurisdiction analysis of the cuts and resulting distributions had not been available until received today.

    Click here to read an Excel document that includes detail county by county and also includes municipal allocations within each county. Thanks to the MDOT for providing MACo with this timely information. Back to Top

    90-Day Report Available

    The Department of Legislative Services has released its 90 Day Report, the annual review of actions taken by the General Assembly. Along with a useful overview of the budget, state aid, and other policy issues, this report annually includes a practical summary of all distributions made, by category, to each county. The document is available here. County-by-county aid detail: Part A on page 88.
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    Final State Budget - Local Effects

    April 14 . . . From the MD Department of Legislative Services: three charts, including FY 2010 Impact of Conference Committee Actions on (1) education aid, (2) other aid to local governments, and (3) other cuts and shifts affecting local governments, yielding the total effect for each jurisdiction.

    Explanatory Notes:
    • The data in these tables has been assembled by the Department of Legislative Services, and shared with MACo
    • The Highway User Revenue reductions shown on page 2 totaling $101.9 million is a combination of county and municipal reductions. However, the budget conference committee approved a manual reduction of the municipal losses that would have been part of this, from about $11.5 million to about $3.5 million. Counties seeking to adjust the total figure presented here for the usual municipal allocations are advised to reduce that municipal share by roughly 70% to provide a better working figure for the cut direct to the county government.
    • The Additional Highway User reductions in the following column (totaling $60m) are county-only cuts, with no municipal component.
    • The permanent reductions to local jail per diem reimbursement are complex, but for FY 2010 only, the State will provide no reimbursements at all.
    • These documents do not show the effects of reductions made through the budget to Local Health Departments, whose formula funding was reduced for FY 2009 by $10.1m, and then maintained at that reduced level for FY 2010, without any legislative budgetary or statutory action.
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    Budget Conference Wraps Up: Action Expected Soon

    April 10... On Friday morning, the Conference Committee on the Operating Budget and Budget Reconciliation and Financing Act (HB 100 and HB 101) concluded their work. The final agreement will be brought before the floor of each chamber soon for final passage.

    The very last action taken by the Conference Committee was to completely eliminate all reimbursements to local correctional centers for FY 2010. The Administration had proposed that these distributions be targeted for $6 million in cuts, the legislative budget had increased that reduction to some $18 million, and this final action eliminated the remaining portion.

    The final cut to local jails increased the State’s proposed fund balance for the coming year from $87 million to a round $100 million.

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    State Budget Plan Taking Shape

    April 8 . . . With the Budget Conference Committee – members from both the Senate and House appointed to work out differences – nearing conclusion of its work, many tentative decisions have been reached. Most of the major issues affecting local governments seem to have been resolved, and the likely effects of the State budget are coming into clearer focus.

    Below is a quick summary of major county budget issues, as they appear to be coming together:

    • The FY 2010 total effect on counties will look close to the level of cuts proposed by the Senate, less about $24 million, as the Conference has tentatively rejected the cost shift of assessment functions from the State to counties, and a similar shift of law clerk salaries
    • The $102 million reduction in highway user revenues has been agreed to, to affect both FY 2010 and 2011. The distribution will be according to the initial House proposal (the two sides had some differences on how to allocate a share to Baltimore City), and $8 million of municipal reductions were shifted to their respective counties (counties anticipating that their municipal governments would bear some share of the published cuts are advised to reduce those assumptions by roughly two-thirds, increasing the net county cut)
    • The proposal to capture $60 million in income taxes was rejected on the surface, but the Senate’s comparable proposal to capture the exact same dollars in cuts to highway user revenues was accepted – meaning an additional $60 million in county-only roadway cuts
    • While the Conference Committee rejected the proposed shifting of costs for assessments and law clerks (which would have been for two years, as passed by the Senate) they substituted another cut – a reduction in the local share of highway user revenues from 30% to 28.5%, roughly a $24 million annual cut that begins in FY 2012 and extends permanently
    • Some issues remain unsettled, including the precise amount to capture from local Program Open Space fund balances, the amount the State may be able to restrict from additional FY 2010 GCEI funding for school boards, and possibly additional issues related to federal funding (and inherent restrictions with its use)
    • The Conference report will include an adjustment to the deadline for county MOE waivers, essentially allowing a “second track” for counties who did not apply for waivers by April 1 to do so by May 1, while leaving the eight counties already applying unaffected by the new timetable
    • The Conference report will alter the “payback” timetable, for counties to begin replenishing the Local Income Tax Reserve Fund (from which $367 million will be transferred this year to the State’s general fund) to FY 2013, rather than FY 2010 or 2011

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    Summary: House and Senate Budget Plans

    House Plan:

    Senate Plan:

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    Speed Cameras Approved

    April 10 . . . Senate Bill 277, Speed Cameras, was approved today by the General Assembly. Read more

    April 2 . . . In a reversal vote, the Speed Camera legislation, SB 277, passed the Senate, after defeating the bill the day before. The legislation enables speed cameras to be placed in highway work zones and within a half-mile of any school. The debate was chonicled in the Maryland Politics blog. The bill now moves to the House where its passage is likely.

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    Press Conference: State Reconsider Deep County Cuts

    April 1 . . . MACo President Wilson Parran and other county leaders held a Press Conference in Annapolis to call for State policymakers to reconsider deep county cuts being proposed as part of budget balancing. Of particular concern is the $60 million proposal to raid local income taxes.

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    Maintenance of Effort Waiver Requests

    The waiver process required an application by April 1. Read the Articles of Education section with relevant information. Waiver Process in COMAR - MD Regulations.

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    State Revenue Writedown Over $1 Billion

    March 11 . . . At the Board of Revenue Estimates meeting, state revenues for FY 2009 and FY 2010 were reduced by over $1 billion. The detailed chart showing the adjustments (reflecting updated assessments from December to March) are available at the Office of the Comptroller.

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    State Aid to Locals Review During Interim

    March 12... The Senate and House leadership have announced the creation of a Joint Legislative Workgroup on State Aid to Local Government. Composed of seven Senators and seven Delegates, the workgroup will meet during the 2009 Interim and make recommendations prior to the 2010 Session. The members will be appointed by the Senate President and House Speaker, and will be co-chaired by one Senator and one Delegate. The members and the schedule for the workgroup will be announced later this spring.

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    Proposed State Aid Overview

    DLS has published an Overview of State Aid to Local Government for FY 2010, detailing the Administration's proposed budget that may be useful for county governments. The first pages isolate budget-balancing components of the FY 2010 budget plan, and show the effects county by county.

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    School Construction Update

    Review of FY 2010 local school board requests by Dr. David Lever - Power Point or PDF Visit the  Interagency Committee on School Construction website

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    Major Issues

    County Budget Security

    In light of revenue trends and instability, the State faces a renewed challenge to its multi-year financing of public services, and will be seeking to reduce long-term costs.  Some have advocated a shift of funding responsibility to counties for any number of shared responsibilities in education, public safety, public health, and elsewhere– a massive cost shift that could burden county budgets and taxes tremendously.  MACo urges State policymakers to act responsibly in managing their own expenditure pressures, and not to “send the problem downhill” in a shift of responsibilities to county officials.

    March 20. . . The House Appropriations Committee adopted its FY 2010 Budget Plan, including nearly $300 million in cuts to local governments through several means. While certain elements suggested by MACo were included in the plan, including an elimination of a proposed cost shift of costs for conducting property assessments, the overall package of reductions poses serious local consequences. The main local impacts are:

  • A $102 million reduction in Highway User Revenues, affecting both FY 2010 and 2011- comparable to the reduction taken in FY 2004 and 2005

  • A $60 million “unallocated” local cut, effected by withholding a calculated share of each county’s local income tax yields

  • A $36 million “recapture” of school funding overpayments resulting from calculation errors in FY 2009, reducing many jurisdiction’s distributions in FY 2010 and 2011

  • $12 million permanent restructuring of the state’s per diem reimbursement for local corrections centers, now proposed to only compensate (at a flat rate) for prisoners with 12 to 18 month terms, and eliminating state responsibility to fund a backlog of local payments

  • A permanent shift in the formula for nonpublic educational placements, shifting some $16 million per year in costs from the State to the local school boards

  • A reduction of $36 million from the statutory funding formula to community colleges, providing a modest increase in funds this year, plus limitations against tuition increases for the coming year

  • Among the various cuts considered, but rejected, by the House include:

  • A shift of costs for conducting assessments

  • Billing counties for salaries of circuit court law clerks

  • Eliminating most funding to “host counties” of State-owned DNR properties

  • Reducing or eliminating police aid

  • Reducing or eliminating reimbursement for the “circuit breaker” tax credits

  • The budget plan will be considered by the full House this week, while the Senate beings work on its version in the next few days. A conference between the two chambers will eventually propose the final version of the budget plan, including HB 100 (the budget) and HB 101 (the budget reconciliation and financing act, or BRFA).

    February 23 . . . The major legislation affecting county budgets this year is the Administration’s Budget Reconciliation and Financing Act, HB 101/SB 166.  The lengthy bill implements various changes to state law required to balance the proposed FY 2010 state budget.

    With the federal stimulus funds now replacing a number of originally proposed local aid reductions, the remaining effects anticipated from the bill (which will be subject to substantial amendment) are:

    • A new requirement than counties will be invoiced by the state for most of the costs of the State Department of Assessments and Taxation’s property assessment functions, totaling nearly $37 million annually (and with permanent effect)

    • Transfer of some $367m in funds from the Local Income Tax Reserve Fund (money used by the State as a hedge against future refund liabilities), with a 10-year repayment plan from the local income tax (meaning nearly $37 in reduced local income tax revenues each year from FY 2010 through 2019)

    • Other funding changes include a two year reduction ($6m per year) in per diem reimbursements to local jails

    • A two year elimination of most host county reimbursements from the Park Service and Forest Service for state-owned lands

    • A diversion of nearly $2.3 million annually from the Waterway Improvement Fund

    • A one-time transfer of $1 million from the Vehicle Theft Prevention Fund

    HB 101 has been schedule for a hearing on March 3, SB 166 on March 4.  With the House having the responsibility to move the budget first this year (this unofficially alternates each session) it is very likely that HB 101 will be the vehicle for ultimate reconciliation efforts, rather than SB 166.

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    Scrap Metal and Pawnshop Regulation

    MACo has supported several bills intending to better regulate the businesses that pay for metal items that may be related to property theft, which has been on the increase in Maryland and elsewhere.

    Scrap Metal

    March 30 . . . SB 32 Passed the Senate in amended form on March 27. HB 207-Voted Unfavorable by House Economic Matter Committee on March 28.

    February 23 . . . SB 32 was heard in the Senate Finance Committee on February 19. HB 23 and HB 207 are scheduled to be heard in the House Economic Matters Committee on February 24.

    MACo sought to send a clear message by supporting all three bills, but any bill is likely to be heavily amended before final action.  MACo is strongly urging the committees to retain language ensuring that a statewide regulation is a “floor but not a ceiling” – essentially reserving local governments the ability to add further regulation to address specific local needs.

    Pawn and Secondhand Dealers

    March 30 . . . Amended version of SB 597 passed the Senate on March 26 and will be heard in House Economic Matters Committee on April 7. No action taken on HB 23 by House Economic Matters Committee.

    March 17 . . . EHEA Committee likely to vote amended pawn legislation Thursday. The bill (SB 597) appears on voting list, and a set of "consensus" amendments have been circulated, with general agreement from counties and law enforcement. No House action has yet been secheduled, but it appears likely that the SB 597 will move this week.

    February 23 . . . HB 1039 is scheduled to be heard February 24, alongside the scrap metal bills. SB 597 is scheduled for March 4 before the Senate Education, Health, and Environmental Affairs Committee (a different committee than heard the scrap metal legislation).

    These bills require electronic reporting by pawnshops, who are already under statewide regulation.  The bill also requires a study of a proper mechanism to oversee secondhand dealers, who are not currently subject to State regulation, with an eye toward comparable treatment.  MACo is also seeking “floor but not a ceiling” language in these bills.

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    Smart Growth Bills

    March 30 . . . HB 294/ SB 273 - Smart, Green, and Growing – Local Government Planning – Planning Visions - MACo supported this legislation and also supports the amended versions of the bills as passed by both chambers. HB 294 passed the House and SB 273 - passed the Senate.

    February . . .  This Administration bill replaces the eight planning visions with 12 visions created by the Task Force on the Future of Growth and Development in Maryland.  The bill also creates a bi-annual reporting requirement for local governments that have enacted adequate public facilities +ordinances and authorizes local governments to establish a transfer of development rights program to assist in the purchase of land for a school or public facility within a priority funding area. MACo supports the bill as being consistent with the recommendations of the Task Force.  The Environmental Matters Committee heard the bill on February 18.  The Senate Education, Health, and Environmental Affairs Committee will hear the bill on February 25.

    HB 295/ SB 276 - Smart, Green, and Growing – Annual Report – Smart Growth Measures and Indicators and Implementation of Planning Visions

    March 31 . . . The original version of HB 295, an Administration bill, requires the Department of Planning to adopt regulations identifying indicators that a local jurisdiction must provide in an annual report and lists 12 categories of information that the indicators should address. The bill also imposes a new annual reporting requirement on charter counties and expands an existing annual reporting requirement for non-charter counties and municipalities. MACo opposed the bill as not being consistent with the collaborative approach recommended by the Task Force on the Future of Growth and Development in MD to jointly develop the indicators.

    For the House Environmental Matters amended version of the bill, the new annual reporting requirements were not discussed by the Task Force on the Future of Growth and Development in MD and should not be part of the indicators bill. The new amendments require counties to work towards achieving a State mandated goal of 80% development within their priority funding areas (PFAs) by 2012. Counties making progress towards the goal will be placed in a higher priority position for State funding requests for growth-related projects. Counties failing to make progress will have their State-issued stormwater management, grading, and discharge permits denied or subject to conditions for projects outside their PFAs. Local governments must also annually report on their progress in decreasing local vehicle miles traveled and increasing affordable housing.

    February . . . This Administration bill requires the Maryland Department of Planning to adopt regulations identifying indicators that a local jurisdiction must provide in an annual report and lists 12 categories of information that the indicators should address.  The bill also imposes a new annual reporting requirement on charter counties and expands an existing annual reporting requirement for non-charter counties and municipalities.

    MACo opposes the bill as not being consistent with the collaborative approach recommended by the Task Force on the Future of Growth and Development in Maryland to jointly develop the indicators.  The new annual reporting requirements were not discussed by the Task Force and should not be part of the indicators bill. The House Environmental Matters Committee heard the bill on February 18.  The Senate Education, Health, and Environmental Affairs Committee will hear the bill on February 25.  

    HB 297/ SB 280 - Smart, Green, and Growing – Smart and Sustainable Growth Act of 2009

    March 30 . . . HB 297/SB 280 - MACo supported the bill with an amendment that would make the “consistency” definition clearer.  Both chambers passed amended versions of the bills which MACo supports. HB 297 passed the House by a vote of 122-16 on March 22 and SB 280 passed the Senate unanimously on March 27.

    February. . . This Administration bill seeks to address the Maryland Court of Appeals holding in the Trail v. Terrapin Run case.  The bill reaffirms the existing requirement that a local government’s land use ordinances and regulations must be consistent with its comprehensive plan.  It clarifies that special exceptions must be consistent with the plan.  The bill defines “consistency” with a comprehensive plan as “an action taken that will further, and not be contrary to, the policies, timing, development patterns, land uses, and densities or intensities in the plan.”  The bill also creates educational requirements for members of local planning commissions and boards of appeals.

    MACo supports the bill with an amendment that would make the “consistency” definition clearer.  The House Environmental Matters Committee heard the bill on February 18.  The Senate Education, Health, and Environmental Affairs Committee will hear the bill on February 25.  

    HB 1116/ SB 878 - Smart Growth – Visions and Performance Standards

    March 31 . . . HB 1116 was withdrawn by the sponsor. A majority of the bill was amended into HB 295. The Senate Education, Health and Environmental Affairs Committee had not taken any action on SB 878 as of March 30.

    February . . . This bill requires local governments to incorporate five performance goals, including location of development, reduction of vehicle miles traveled, amount of affordable housing, location of jobs, and water protection.  The Maryland Department of Planning (MDP) would certify whether local comprehensive plans meet or will meet the performance standards.  If MDP certifies the plan, that jurisdiction will be given priority in the disbursement of State infrastructure funds.  In 2018, if MDP determines that a local jurisdiction has failed to meet the performance standards, the jurisdiction cannot issue grading or building permits outside of their Priority Funding Areas (PFAs).  The bill also replaces with the existing eight planning visions with 12 new visions that are modified versions of those suggested by the Task Force on the Future of Growth and Development in Maryland.  PFAs designated by local jurisdictions must be consistent with the 12 visions.  Finally, the bill expands existing annual reporting requirements for non-charter counties and municipalities.

    MACo opposes the bill, as it imposes arbitrary performance standards on local jurisdictions that the jurisdictions may not be able to meet, gives MDP the ability to certify local comprehensive plans and dictate the disbursement of State infrastructure funding, and mandates 12 new planning visions that are different from those recommended by the Task Force.  The House Environmental Matters Committee will hear the bill on February 26.  The Senate Education, Health, and Environmental Affairs Committee will hear the bill on February 25.

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    Speed Cameras

    HB 313/SB 277 - Vehicle Laws – Speed Monitoring Systems – Statewide Authorization and Use in Highway Work Zones

    March 30 . . . The Senate Judicial Proceedings Committee passed an amended, stripped down version of bill authorizing speed cameras for use in work zones only. The Senate is scheduled to vote on the adoption of the committee’s amended version March 30.  No action has been taken on the House version- HB 313.

    This Administration bill is a MACo initiative.  It would authorize a local legislative body to adopt a speed camera program for residential roads with a speed limit of 45 MPH or less and in school zones.  It also authorizes the State and local governments to use speed cameras in certain highway work zones.

    February . . . Driver protections include an initial 30-day warning period before a local government can issue any citations, public notice of the location of fixed speed cameras, a 12 MPH speed tolerance (drivers must be going more than 12 MPH over the posted speed limit before the camera will activate), an enhanced speed tolerance near areas subject to speed limit changes, and the ability to contest a citation in District Court. Fines are limited to $40 and a speed camera citation does not become part of a driver’s record and cannot be used to assess points or affect a driver’s insurance.  Money earned from residential and school zone speed camera citations would not go into a local government’s general fund.  Beyond what is necessary to pay for the speed camera program, any excess revenue must go towards related public safety concerns, including pedestrian safety programs.  Any remaining balance not spent within two years after its collection goes into the State General Fund. MACo supports the bill as speed cameras have been proven to slow down speeding and reduce accidents, especially those involving fatalities.  The bill lets counties decide for themselves whether to enact a speed camera program but sets uniform criteria and protections that all counties would have to follow.  The House Environmental Matters Committee heard the bill on February 11.  The Senate Judicial Proceedings Committee will hear the bill on February 24.

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    Standing

    Standing is the legal term of art for the right of a person to be able to pursue an action in court.  Without standing the person’s action will be rejected.  The basis premise for standing under Maryland law is the person bringing the action must be able to see, hear, or smell the activity about which that person wishes to complain.

    March 30 . . . SB 824/HB 1053- - Community Environmental Protection Act of 2009 - The House Environmental Matters Committee gave the bill an Unfavorable report and the SB 824 was withdrawn by the sponsor. A more favorable bill, which MACo supported – HB 1569- Standing - Miscellaneous Environmental Protection Proceedings and Judicial Review was introduced and testimony heard by the Environmental Matters Committee and passed by the House on March 25. The Senate version of the bill is scheduled for a hearing on March 31 in the Education, Health and Environmental Affairs Committee.

    February 23 . . . In recent years MACo has successfully resisted efforts to expand standing, most recently to advocacy organizations, such as community associations.   This Session, urging federal law as a model, advocacy organizations are urging broader standing rights and greater options for bringing actions against governments and business.  The bill has impressive sponsorship - the Chairman of the committee to which it is assigned in the House of Delegates, Maggie McIntosh, and, in the Senate, the Chairman of the Judicial Proceedings Committee, Brian Frosh.  SB 824/HB 1053. And, Attorney General Gansler and environmental organizations, such as the Chesapeake Bay Foundation, are championing it. MACo has voted to oppose the bills and is partnering with a coalition, including the Chamber of Commerce, Homebuilders Association, and Farm Bureau.  A subcommittee of the House Environmental Matters Committee will be convening work session in which MACo will have a prominent role.  The bill is scheduled for hearing on March 11 before the House Environmental Matters Committee and on March 18 before the Senate Education Health and Environmental Affairs Committee.

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    Program Open Space (POS)

    March 30 . . . SB 163/ - Program Open Space – Impervious Surfaces - Prohibition
    MACo supported the bill and the Senate passed an amended version of the bill by a vote of 34-12 on March 27.

    March 30 . . . HB 1564 - Program Open Space - Use of Funds - Indoor or Outdoor Recreational Facilities is essentially the cross file version of SB 163. MACo supported the bill with recommendations that the House consider the Senate amended version (along with some technical modifications to make its application clearer) as a compromise on this matter. Awaiting final passage by the House.

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    Media Coverage

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    Contact a MACo Staff member who handles the issue of interest to you. Visit the MD General Assembly for more bill information. Find State Legislators contact information.

    2008 Baltimore Sun editorials & MACo Responses:

    Baltimore Sun:: Teacher Pension Funding
    MSTA-MACo Baltimore Sun Editorial Response to Teacher Pension Funding
    Baltimore Sun: Counties brace for O'Malley cuts (Teacher Pension Funding)

    Baltimore Sun: Growth Editorial
    MACo Response to Baltimore Sun Growth Editorial

    Letter to "Plus Group" on Growth 7-18

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