Major Issues Summary

MAINTENANCE OF EFFORT (MOE)

MACo MOE Position Statement
Primary Bill - SB 310 - MACo Testimony

The main legislation addressing MOE, one of MACo's legislative initiatives for 2010,was heard in both the Senate and House Committees on February 24. The primary focus of MACo's effort is on reform of the waiver process.

Background: Facing deep State budget cuts and declining local revenues, many counties contemplated waivers from the State MOE law. Three counties who actually pursued the waiver through the State Board of Education were all rejected, with several disturbing rationale cited by the State Board.

The current waiver process suggests an avenue for consideration of county budget difficulties, but the adjudication by the State Board (a body charged with advocating for public education, and without any expertise in government budgets or financing) may leave counties without meaningful redress in times of fiscal crisis. Legislation could eliminate, or replace, the current waiver system with a clearer and fairer process for evaluating county hardships in waiver requests.

The chief bills heard were products of the Joint Workgroup to Study State, County and Municipal Relationships. See our website section regarding the Joint Workgroup for more information on the workgroup deliberations and reports.

Those bills, SB 310 and HB 304 would offer greater guidance in the State Board of Education's consideration of waiver requests, and alter their timing and resolution.

Executive Director Michael Sanderson testified in support of waiver reform, seeking amendments to the bill to add additional provisions to allow an expedited appeal of the State Board's decision, create an extraordinary and limited "economic waiver" as an objective process for the toughest economic circumstances, and require the State Board to honor agreements between the County and the local Board of Education.

County Executives Ike Leggett, Jack Johnson, and Rick Pollitt, representing the three counties who sought but were denied waivers for FY 2010 by the State Board of Education, testified in favor of the legislation and MACo's reform suggestions.

Additional MOE topic bills were also heard by their respective committees:

SB 403 alters the "penalty" for missing MOE from school board to county aid.
MACo testimony
HB 410 provides a "blanket" MOE waiver for FY 2011.
MACo testimony
HB 632 provides a retroactive waiver of MOE penalties for FY 2010.
MACo testimony
HB 1131 provides an expedited appeal process for a waiver request.
MACo testimony

SCHOOL CONSTRUCTION

The Governor's budget includes $260 million for school construction and renovation projects, even while the State's capital program has been somewhat abridged due to operating-to-capital shifts representing a significant element of budget resolution. The General Assembly has broad latitude to alter or even add to the capital budget, and these discussions usually follow soon after the operating budget decisions come into focus.

MACo's initiative: While the State has laudably increased its school construction and renovation efforts in recent years, the need for funding remains high. Every state dollar invested in school projects leverages roughly two county dollars of local funding. MACo urges the General Assembly to continue its commitment by keeping school construction and renovation funding a high priority, and support a funding level consistent with its own adopted multi-year goals. See the Task Force to Study Public School Facilities Report

Process and schedule for construction funding approval: The Interagency Committee on Public School Construction (IAC) proposes recommendations according to the following schedule: December-recommendations for 75% of the budgeted allocation; January-schools present to Board of Public Works to support projects that could utilize the other 25% of the allocation; February-IAC brings recommendations to Board of Public Works for allocation of the remaining 35% of funds-May-final recommendations for funding, based upon approved state budget.

All information regarding current proposals from the local school boards and funding recommendations from the IAC can be found on the Public School Construction Program website

Proposed Capital Budget school construction details on page 5
Analysis of School Construction capital budget item
MACo's analysis

SCRAP METAL

MACo's intent: Scrap Metal Dealers and Pawnshops-Enhanced Recording and Remittance- The availability of simple, largely anonymous, cash transactions and the individuals submitting items for purchase at a dealer will enable law enforcement to better react when stolen property has been reported, and to better track down offenders through these transactions. The anticipated result is an overall cooling in the "easy money" market for stolen metal and semi-valuable goods through these scrap dealers and pawnshops.

Status on the proposed State and Local scrap metal bills is located on our blog, Conduit Street and individual bills are listed below:

STORMWATER MANAGEMENT

The Department of the Environment's regulations governing stormwater management takes effect May 4, 2010, but has triggered concern from counties and other parties. Counties have raised concerns with the regulatory effect on projects where initial approval had already been granted, and also redevelopment where a "downtown" project may be unable to practically attain the required reductions.

MACo has been among several parties working toward a resolution to these concerns, whether by modified regulations, new legislation, or other means.

See the MACo Summary of action on stormwater management issue to date and the Proposed Legislation addressing some of MACo's concerns.

HEAVY MACHINERY TAXATION

Companies engaged in the business of renting heavy machinery have raised concerns with taxation policy in Maryland conflicting with that in other states, raising concerns with predictability and compliance.

HB 817 has been introduced to grant a personal property tax exemption for the heavy equipment at issue. Counties have suggested that a true "local option" that may allow a shift of tax burden from one form to another may provide the needed relief, but without undermining local revenue structures or requiring unduly burdensome administration.

FOR MORE INFORMATION

RESOURCES

Contact a MACo Staff member who handles the issue of interest to you.
Contact a member of the MACo Legislative Committee, Tax Subcommittee or Education Subcommittee.
Visit the MD General Assembly for more bill information.
Find State Legislators contact information.