Md., Calvert Leaders Spar Over Budget Cuts

County Wants Bonds To Fund Top Projects

Maryland's projected $1 billion shortfall in the coming fiscal year and its potential impact on Calvert County triggered sharp exchanges last week between county commissioners and members of Calvert's General Assembly delegation.

The county is facing a $4 million deficit, primarily because of lower-than-expected income tax receipts and recordation taxes, said Terry Shannon, Calvert's finance director. The figure is based on preliminary estimates.

Commissioners agreed last week to cut about $160 million from the county's long-term capital plan, said board President Wilson H. Parran (D-Huntingtown). Among the casualties, he said, are renovations at the Prince Frederick and Solomons volunteer fire departments and a planned expansion of the County Services Plaza, an administration building in Prince Frederick.

What remains are priority projects expected to cost $25 million, and the county wants permission from the state to sell bonds to finance them, Parran said. The projects include a new roof for Mutual Elementary School in Port Republic and improvements on Boyds Turn Road in Owings and Brickhouse Road in Dunkirk.

But Del. Anthony J. O'Donnell (R-Calvert), House minority leader, warned commissioners about issuing $25 million in bonds. He asked what would happen if the county, instead of the state, had to start paying for Calvert teachers' retirement benefits.

"I wonder if $25 million will look as affordable when you have to pick up teachers' pensions," O'Donnell said.

During last year's special legislative session, as Maryland faced a long-term deficit of more than $1.5 billion, Gov. Martin O'Malley (D) resisted calls from state leaders to significantly reduce state aid to localities. But with a new shortfall, lawmakers are again talking about reducing local aid, including shifting some state teacher pension costs to counties.

O'Donnell also told commissioners that the bonds would mean digging into county taxpayers' pockets.

But Senate President Thomas V. Mike Miller Jr. (D-Calvert) and Del. James E. Proctor Jr. (D-Prince George's), vice chairman of the Appropriations Committee, said that the county's bond request was financially prudent.

"I believe that local government, after having public hearings and debate and complying with self-imposed debt limits, has a right to have as much of their requests as possible," Miller said.

Parran told lawmakers that the county can't keep "bailing out" the state. Miller said that it has been the other way around. "We've been bailing out Calvert for five years," he said, noting that the county has received double-digit increases in state funding during that time. The state money, he said, helps keep the county's property taxes low.

Proctor said the state is looking for ways to reduce its budget, including possible midyear furloughs for state employees that could save $34 million.

"There are a lot of things floating as possible cuts," he said.

O'Malley has cut about $300 million and is expected to trim an additional $200 million before the General Assembly convenes next month, Proctor said.

"But it's bad," he said. "It's bad."