Tax rates stay same in budget

Commissioners finalize spending plan

Wednesday, May 27, 2009

All local tax rates will remain the same in fiscal 2010. The property tax rate, currently the sixth-lowest in the state, stays at 85.7 cents per every $100 of assessed value. The income tax rate, currently the sixth-highest in the state, stays at 3 percent of taxable income.

"Certainly this year has been a challenge," said Elaine Kramer, chief financial officer for St. Mary's County government.

More than $4.1 million in surplus funds were used to balance the budget, partly to fill in a $3 million reduction in gas taxes collected by the state and usually passed on to the county. Another $600,000 of general tax dollars will be used to subsidize the medical adult day care program run at the Ripple Center in Hollywood.

The board of education gets $79.9 million in local funds for its total operating budget of $181.5 million, with 43 new positions. The new $25.4 million Evergreen Elementary School is opening in the fall.

The sheriff's office budget is $33 million and six new corrections officers are funded.

There is $13 million to pay off past debt and $4.6 million to build the trust fund for retiree benefits.

Commissioner Larry Jarboe (R) was the sole vote against the budget because he wanted to see the constant yield rate used for property taxes, which would have reduced the budget by $5.9 million.

He said he will be bringing back another list of possible reductions in the next few weeks to review for potential savings in the 2011 budget.

"That way no one can say it was done at the last minute," he said.

Commissioner Daniel H. Raley (D) said in the 10 years he's been on the job this was "one of the most frustrating and difficult." With the cuts handed down from the state, he said, "We know that next year they're probably going to hit us as hard if not harder. We're in the midst of a recession … and we're now feeling it. At least this year at least we've maintained the level of service especially with the board of education."

Raley reviewed the fiscal 2000 budget and noted the local share to the board of education was then $46.3 million. Local funding is 72 percent more now, he said. For the sheriff, the budget then was $13.8 million. It is now 139 percent more, he said.

"It's not perfect; it's very frustrating, but … I guess it's the best we can do for this year," he said.

Commission President Francis Jack Russell (D) said in a statement, "This is a responsible budget … with no furloughs, no layoffs, and maintains services while keeping schools and public safety as priorities."

There is no cost of living allowance for county government employees, but merit and step increases are programmed.

Commissioner Thomas A. Mattingly Sr. (D) said it was wise and respectful to taxpayers to study the county's debt affordability in the recent past.

"County government has made wise decisions in following that model and sticking to it and not dancing all over the floor," from year to year, Mattingly said.

jbabcock@somdnews.com