Property, income tax increases on the table in Calvert

To open the May 16 hearing on the county’s proposed operating budget for the upcoming fiscal year, Calvert Commissioner President Earl F. “Buddy” Hance (R) conceded, “There are some proposals you’re not going to like.”

While Hance’s comment was directed to the members of the public in the hearing room, the overflow audience watching in two other nearby rooms and anyone watching the live stream, he may have also been speaking to his fellow commissioners.

The proposals involve increases in property and income tax rates, boosts that — save for a few years — Calvert leaders have been able to forgo for two generations.

While the county’s finance and budget office was able to identify actions to reduce a $28 million deficit in the fiscal 2025 budget of $376.1 million down to $11.5 million, filling that gap, addressing the request of additional funding from the board of education and providing raises for county government employees remained unaddressed.

During the commissioners’ Tuesday meeting, motions were made to advertise for public hearings for raising the real estate tax rate from $0.927 per $100 of assessed value to $0.967 and increasing the county’s income tax rate from 3% to 3.2%.

Hance told Southern Maryland News after Tuesday’s meeting that the hearings will take place June 4 as part of the commissioners’ weekly agenda. At that same meeting, the commissioners are expected to vote on the final fiscal year budget, which would take effect July 1.

In a memo to the commissioners prior to the budget hearing, Bruce Miller, finance and budget director, stated, “The budget for most county departments decreased when compared to the FY 2024 budget. However, debt service costs increased by $5.2 million. Funding towards education remains the primary focus of this budget at 41.4% of the general fund operating budget and 22.8% of the six-year capital projects budget. Education funding for operations of $154.7 million is provided, no change from the amount provided (in the current fiscal year) despite the decrease in enrollment over the last five years.”

During his presentation of the board of education’s fiscal 2025 budget, Andraé Townsel, superintendent of Calvert public schools, said that in part because of the state’s cutting of $22.5 million in funding to Calvert, the system’s budget for the next fiscal year faces a $37 million shortfall.

“Calvert is the only county receiving a reduction,” Townsel said.

Townsel said the state is allocating just under $87 million to Calvert, putting it at the bottom of Maryland’s per pupil funding list.

The school system’s budget priorities, Townsel said, include the implementation of the Blueprint for Maryland’s Future education reform plan.

Calvert public schools officials plan to use $20 million in previous fiscal year’s fund balance to cover part of the shortfall.

The massive cut to Calvert’s state funding is due to its perceived wealth as a result of tax revenues from the Cove Point Liquefied Natural Gas facility in Lusby. Previously, Calvert and the plant operators used a payment in lieu of taxes method for determining the amount of revenues the county would receive.

During public comment, Sabrina Bergin, who has previously served as a school principal and is now the application technologies supervisor for Calvert public schools, said the county’s “increased wealth index” has resulted in the big reduction in state funding. Bergin noted that national statistics show Calvert is the country’s 17th wealthiest county.

“Are you willing to explore viable solutions instead of shifting the burden on our already strained school system?” Bergin asked.

Townsel said another budget uncertainty — contract negotiations with the leaders of the Calvert Education Association (teachers) and Calvert Association of Education Support Staff — have tentatively reached conclusions.

After the budget hearing, Dona Ostenso, CEA leader, and Stacy Tayman, CAESS president, told Southern Maryland News that their members are not likely to vote on ratifying their pacts until sometime in June.

Educators weren’t the only ones expressing concern over the county’s budget squeeze.

Sheriff Ricky Cox (R) called the estimated 20% cut to his office “dangerous” and “irresponsible.”

Cox indicated the county’s allocation of less than 10% of its operating budget is compromising public safety and jeopardizing recruitment efforts.

Cox requested pay step and cost of living adjustments for his ranks.

County government employees, currently concerned about possible changes to Calvert’s personnel code, also raised concerns about the reticence to give them a sufficient cost of living adjustment.

“Anytime the budget needs to be balanced, county employees lose a benefit,” Barbara Warner, longtime county government employee said. “County employees don’t have anything left to give.”

Members of the public may continue to send in their comments on the proposed fiscal budget until 5 p.m. on June 3.