Prince Frederick, MD – Once again, Calvert County Government will reach into reserves to balance its next budget. The staff-proposed fiscal year (FY) 2017 budget was presented to the county commissioners and public at a public hearing Tuesday, March 22. The hearing was held at Calvert Pines Senior Center.

The proposed FY 2017 general fund budget totals $246.95 million. As expected, expenditures exceed the county’s revenues, which come primarily from property and income tax receipts—57 percent and 32 percent respectively. Over $8.8 million of prior year’s fund balance is being used to meet the needed budget increases.

Among Maryland jurisdictions, Calvert has some of the lowest property and income tax rates. Calvert’s real property tax rate (0.892 per $100 of assessed value) is fifth-lowest in the state. It hasn’t risen in over a generation. Calvert’s income tax rate (2.80 percent) is seventh-lowest in Maryland.

Unlike last year, there has been no discussion by county officials about raising taxes. Plus, unlike last year the current budget plans of the county government and public schools call for pay step increases for all employees.

County Administrator Terry Shannon said there has been “slow, modest improvement” in Calvert’s overall property assessments and the economy. Still, using reserves that were accumulated during years when Calvert had budget surpluses is an indication that “it’s still raining and raining very hard,” said Shannon.
“Borrowing to pay for ongoing expenses is not a sustainable plan,” Department of Finance and Budget Director Tim Hayden added.

Additionally, Calvert’s finances are challenged by the need to adhere to national standards to address other post-employment benefits (OPEB) and address the state-mandated shift in responsibility for funding teachers’ pensions. The county is dedicating $5.3 million in the FY 2017 budget for teacher pension costs.

Nearly half of the county’s operating budget ($122 million) is earmarked for Calvert County Public Schools (CCPS). The county government’s six-year Capital Improvement Plan (CIP) is comprised of several projects and nearly 50 percent of those are related to education. The county’s top capital project is construction of a new Northern High School. That project is scheduled to go out to bid this spring. Calvert’s FY 2017 CIP totals $32.4 million. Most of the funds for the plan will come from the state (41 percent) and bond funding (40 percent).

Calvert County Superintendent of Schools Dr. Daniel D. Curry noted CCPS eliminated 75 jobs in FY 2016, a situation driven by the school system’s dramatic decline in enrollment, Calvert’s low tax revenues and the decline in state allocations. Curry, who spoke at the hearing prior to the public comment segment, noted the Calvert Board of Education has “tentatively approved” the FY 2017 budget he presented last month. The proposed budget includes a pay step increase for all CCPS employees. The pay steps, said Curry have been “frozen for a number of years.”

Curry asked the county commissioners to consider crafting a three-year plan to help CCPS “get caught up in steps.” The superintendent noted that the county “advertises” the pay steps when it recruits new teachers.

During the public comment segment, Calvert County Sheriff Mike Evans [R] stated that while he was “happy” his agency’s deputies will be getting pay step increases, the sheriff’s office still has a need to add some new positions.

College of Southern Maryland (CSM) President Bradley Gottfried submitted a request for $194,000 to upgrade technology at the CSM Prince Frederick campus.
Former Calvert County Department of Planning and Zoning (now Community Planning and Building) director Greg Bowen, representing the Sustainable Calvert Network—a coalition of 10 organizations, asked the commissioners to budget money for land preservation. Bowen noted there is bi-partisan support statewide for land preservation.

Nancy Lehman of the Calvert Commission on Aging requested a new “case manager” position within the county government’s Office on Aging be considered. The case manager position is likely to be needed in the near future, Lehman said, since Calvert’s senior population figure is rising.

A public hearing on the county commissioners’ proposed FY 2017 budget is scheduled to take place in late May. The next fiscal year begins July 1.

Contact Marty Madden at marty.madden@thebaynet.com