Ehrlich Seeks $462 Million Schools Boost
Political Opponents Call Plan to Fund Repairs, Construction an Election-Year Ploy

By Nick Anderson
Washington Post Staff Writer
Friday, January 6, 2006

DUNDALK, Md., Jan. 5 -- Gov. Robert L. Ehrlich Jr. called Thursday for $723 million in new state education aid in the next school year, seeking to boost school construction and help schools that serve low-income children.

The Republican governor, appearing at a Baltimore County middle school, proposed raising state spending on school operations by $462 million for the year that begins July 1 -- meeting the commitment the legislature made in a school aid formula developed four years ago, he said.

Ehrlich also proposed $281 million for renovating or building schools. That would combine $20 million in unspent construction money and $261 million in new funds. The construction proposal is short of the $400 million that counties want but an increase over the current annual commitment of $251 million. Ehrlich's proposals, which come as he faces reelection in November, will go to the Democratic-controlled state legislature as part of a larger budget package.

"The bottom line for today," Ehrlich said, "is it's another good day for education in the state of Maryland."

But prominent Democrats dismissed the governor's plan as politically motivated and, ultimately, inadequate. And a school construction official said the increase in money for building and renovations would barely be noticed amid rising costs for labor and materials.

"The Ehrlich election year giveaway continues," said Jonathan Epstein, manager of Baltimore Mayor Martin O'Malley's gubernatorial campaign. "After three years of ignoring school construction, this is a cynical, desperate attempt to get attention. This has not been a priority for the guy."

Montgomery County Executive Douglas M. Duncan, O'Malley's rival for the Democratic nomination, also has criticized the governor's policies.

"Governor Ehrlich doesn't have a long-term plan or vision when it comes to education," Jody Couser, press secretary for the Duncan campaign, wrote in an e-mail. "He doesn't know where he wants to lead the state 10, 15 or 20 years into the future with respect to education."

O'Malley and Duncan support $400 million for school construction in the 2006-07 fiscal year -- an amount sought by the Maryland Association of Counties.

Thursday's news conference was the governor's second education announcement this week. On Tuesday, he called for a 14.5 percent spending increase for the state university system.

The proposal for the kindergarten-through-12th grade schools largely tracks a 2002 law, enacted under Ehrlich's Democratic predecessor, that commits Maryland to a major infusion of funding to reduce historic inequities for schools with high populations of disadvantaged children. The law, however, does not provide a stream of revenue to pay for the new formula, developed by the Thornton Commission.

Early in Ehrlich's tenure, when the new governor faced a significant budget shortfall, there was considerable suspense as to whether the state could meet the law's requirements. This year, with a surplus of more than $1 billion, local lawmakers hoped that he would include tens of millions of dollars for what is known as a "geographic cost of education index." Ehrlich did not include that money, which is likely to become an issue in the legislative session that opens Wednesday.

Montgomery public schools are hoping to receive $17 million through that index; likewise, Prince George's schools have budgeted about $14 million. That amounts to nearly 1 percent of the draft annual spending plans for each of those school systems.

Asked why he did not propose to fund the geographic index, Ehrlich pointed to his school construction plan. "A lot of counties are going to be very happy," he told reporters.

A year ago, Ehrlich proposed $155 million for school construction. State lawmakers then added nearly $100 million. Another round of upward bidding for the popular program could occur this year as officials prepare for the fall elections.

Effectively, $281 million in construction funds for the coming year would represent a virtually status quo budget, according to David Lever, executive director of Maryland's school construction program. Lever said rapidly rising materials and labor costs in recent years have eaten away at the purchasing power of state construction money.

Large increases in spending could strain the capacity of the school construction industry, he said. "Staying steady is actually a very good thing."

Ehrlich, who is facing a reelection contest this year, surrounded himself with photogenic students from Holabird Middle School. At his side were state Superintendent of Schools Nancy S. Grasmick -- who is a Democrat -- and a grateful school principal. The 44-year-old Dundalk campus is about to receive $6.7 million from the state for new ceilings, windows, heating systems and other renovations.

"Thank you, Governor Ehrlich," Principal Susan Melton said. "There's nothing better than good news. Maybe money."

"Same thing," Ehrlich replied.