| Page 2 of 2 < |
Council Questions Duncan Tax Proposal
|
TOOLBOX
   Resize
COMMENT
 Discussion Policy
 CLOSE
Comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site. Additionally, entries that are unsigned or contain "signatures" by someone other than the actual author will be removed. Finally, we will take steps to block users who violate any of our posting standards, terms of use or privacy policies or any other policies governing this site. Please review the full rules governing commentaries and discussions. You are fully responsible for the content that you post.
Who's Blogging  |
Property taxes are determined by multiplying the rate by the assessed value of a home. Because assessments across the region have soared in recent years, government leaders have sought ways to blunt the impact of rising property values.
In Montgomery, Duncan has proposed reducing the property tax rate to 85 cents per $100 of assessed value. Even with that reduction, the owner of a $300,000 home would have a $91 increase, according to a council staff analysis.
Farber said Duncan's long-term budget projections overestimate revenue. By fiscal 2012, the county could have an $800 million shortfall, he said. Duncan's budget team has predicted a number closer to $100 million.
But the county has a growing list of bills, council members said.
The Governmental Accounting Standards Board, a group that makes the rules for how governments disclose their finances, is urging state and local governments to start setting aside money in fiscal 2008 to cover the cost of retiree health benefits.
In Montgomery, the policy means that the county will have to earmark $160 million per year.
The state of Maryland, Baltimore County and some other jurisdictions plan to start setting aside money in the fiscal 2007 budget. Duncan chose not to.
Since the late 1990s, Duncan has also negotiated a series of generous contracts with public employee unions. The contracts, along with below-par stock market returns, are starting to erode how much real money is in the county's defined pension plan, according to the analysts.
In 2000, the pension plan was 99 percent funded. But this year it is 76 percent funded -- which is below the national average for similar plans -- leaving a $675 million unfunded liability.
"I think it is important to realize what our looming obligations are," said council member Marilyn Praisner (D-Eastern County), who has proposed a 5 cent tax rate cut and a one-time $211 credit to each household.
Weaver noted that the county has a perfect bond rating. "Our fiscal planning is very strong."
But Marvin Weinman, president of the Montgomery County Taxpayers League, wondered whether that would last.
"You've got to cut spending," he said.
Mobile
Email