Left to right, Calvert County Commissioners’ President Steve Weems, Department of Finance and Budget Director Tim Hayden and Board of Education Member William Phalen.
Prince Frederick, MD – Calvert County appears to be gradually creeping out of the throes of an economic recession. The recovery can’t happen fast enough for leaders of county government and the public school system. The two entities met Tuesday, Feb. 3 to analyze the reality of the situation. Lower revenues, less state aid, lower student enrollment, increased healthcare coverage costs and additional budgetary reporting mandates are some of the factors challenging officials.
The meeting, held at Calvert County Public Schools’ (CCPS) Brooks Administrative Center, included an overview from Calvert Government’s Department of Finance and Budget Director Tim Hayden, who noted the county is currently facing a $9.8 million budget deficit for fiscal year (FY) 2016. The county government’s largest revenue stream—revenue from property taxes—is slowly rebounding. Hayden said the rise is “the first increase in assessments in six years.” He added the small increase “is welcome.”
Due to a drop in student enrollment, Hayden stated the county’s contribution will be down slightly in FY 2016. The $110.112 million currently budgeted for CCPS is still above the state-mandated maintenance of effort.
Last month CCPS Superintendent Dr. Daniel D. Curry presented his proposed FY 2016 budget to the Calvert County Board of Education (BOE) and the public. The $199.05 million spending plan can only be balanced if school officials cut more than $6 million in expenditures. The budget hearing was held just prior to the release of Maryland Governor Larry Hogan’s proposed FY 2016 budget, which cuts state funding to CCPS by $3.2 million.
While Curry has declared school officials intend to give CCPS employees a pay step and 1 percent cost of living adjustment in FY 2016, the reality is staff reductions are looming.
Reports from the rumor mill in southern Calvert County prompted Commissioner Mike Hart [R-District 1] to seek answers to the reports. Hart said he was told nine Patuxent High School teachers will lose their jobs at the end of the school year.
“That is possible,” Curry admitted.
Hart stated there is a perception in his district that the public schools in the south portion of the county are not getting equal opportunities.
Curry’s response was that the BOE might need to consider countywide school redistricting.
“Is it etched in stone at this point?” Hart asked.
Curry responded that he was optimistic that CCPS could find “additional funds.”
The boards discussed the possibility of resurrecting the funding formula, a mechanism employed from 2006 to 2012 to determine the county’s allocation to CCPS. “It worked well for everyone,” County Administrator Terry L. Shannon recalled. Factors in the formula included the consumer price index.
Commissioner Evan K. Slaughenhoupt Jr. [R-District 3] said a revised funding formula “would reflect the economy of the county.”
“It made the world different when we had the formula,” said BOE Member William J. Phalen Sr., who was a school board member when the previous funding formula was established and implemented. Phalen stated the component that has challenged CCPS due to its change “is what the state gives us.”
Slaughenhoupt said the state “walking away from its responsibility is a reality.” Maryland’s economy, he added, “hasn’t bounced back. It has stayed relatively flat.”
“We know we’re going to have to find more revenue streams,” said Hart, listing such initiatives as developments of the old Calvert Middle School property in Prince Frederick and the Patuxent Business Park in Lusby plus creating “a level playing field” for local contract bidders. “We are exploring anything anybody brings to us,” said Hart.
Regarding the (13.7 percent) dramatic increase in CCPS’ employees’ healthcare coverage costs, Assistant Superintendent of Administration Anthony Navarro stated the numbers will continue to rise to an “almost unsustainable” level if action isn’t taken. School administrators have sought requests for proposals from prospective vendors for healthcare coverages. Meeting with the prospective vendors will take place later this month prior to recommendations being submitted to the BOE for final approval.
Slaughenhoupt, who serves as the commissioners’ liaison to the Maryland Association of Counties (MACo), gave the meeting attendees a brief summary of recent association members’ discussions about possible consolidations of services for local government and the public school system. Areas where services could be consolidated include combining information technology departments and recreation. “There was nothing easy,” Slaughenhoupt admitted of the consolidation proposals.
In wrapping up the lengthy session, BOE President Tracy McGuire reminded the commissioners that the school board was “fiscally dependent” on the county and state.
County Commissioners’ President Steve Weems [R-At-large] thanked school officials for the update and declared, “let’s keep cracking along and look for efficiencies.”
County government’s staff-recommended budget will be presented to the county commissioners and public in March with the board’s budget due to be presented at a hearing in May.
Contact Marty Madden at marty.madden@thebaynet.com