Pr. George's Asks Court To Reject Waiver Denial

Arguing that they face an unprecedented budget crisis, Prince George's County officials have asked a court to overturn the state's denial of their request to provide county schools with $23.6 million less than the law requires.

James P. Keary, a spokesman for County Executive Jack B. Johnson, said the Maryland State Board of Education "failed to appreciate the unique circumstances faced by Prince George's County in the current economic crisis."

"The downturn in the economy, which has been characterized by President Obama as a national crisis, presented fiscal conditions that significantly impeded the county's ability to fully fund" the schools, Keary said in a statement released yesterday.

"The county believes that the state board did not properly apply the criteria set forth in the statute for considering the granting of the waiver," said Rajesh A. Kumar, a lawyer representing the county in the appeal filed yesterday in Prince George's Circuit Ccourt.

The state board's president, James H. DeGraffenreidt Jr., did not return a call requesting comment.

The Prince George's, Montgomery and Wicomico county governments had hoped to balance their budgets in part by cutting education funding below the state-mandated minimum, known as "maintenance of effort." But the state board rejected their arguments May 15, noting that 21 of Maryland's 24 jurisdictions had been able to pay their share for education despite the recession.

Montgomery officials said they do not plan to appeal the state's decision. When the state board denied its request, Montgomery responded by shifting to the school system the cost of debt payment on school facilities, a sum equal to what the county must spend in maintenance of effort.

"In our view, we've solved the problem," said Patrick Lacefield, county spokesman.

In its decision against the Prince George's request, the state board said the recession had not produced "significant, extraordinary" effects in Prince George's any worse than those in other counties struggling with declining revenue from property and transfer taxes.

The decision blew a $23.6 million hole in the Prince George's budget, sending leaders scrambling to find alternatives to layoffs and furloughs. This month, the county approved a fiscal 2010 spending plan that requires the school system to reimburse the county $11.8 million for debt service on school construction projects. The budget also eliminates 55 county jobs and imposes a hiring freeze and a 10-day furlough for all county government employees.

Staff writer Daniel de Vise also contributed to this report.