Leonardtown, MD — As the Commissioners of St. Mary’s head into the homestretch of their preliminary budget deliberations, they have done very little to whittle down the $11 million budget gap between anticipated revenues and requested expenses.
One commissioner, however, disagrees with the size of that gap. Commissioner Mike Hewitt [R – 2nd District] has one item in his cross-hairs — the county contribution to OPEB (Other Post-Employment Benefits). Hewitt has been saying consistently that the county has been too aggressive in building up that reserve for future retiree health care benefits. The amount in the budget for OPEB for next year is $4.9 million. Hewitt believes the county can forgo that for a year.
Hewitt also believes the county has consistently underestimated revenues, an allegation that Chief Financial Officer Elaine Kramer denies, saying there have been just as many years where the reverse has happened. Hewitt added that the conservative budgeting has denied needed services for county residents.
The commissioners during a March 9 budget work session agreed to fund a $3.6 million budget shortfall in the current fiscal year due to lower than expected income tax revenues. The plan involves using several reserve funds and savings in other portions of the budget.
Hewitt says the revenue shortfall has been due to the layoffs in the defense industry in previous years. He believes the economy is “coming back. It is getting better.” So he also believes that basing revenue estimates for next year on the current year could lead to an underestimate of available revenue.
Hewitt also criticized the $7.5 million BRAC Reserve created two years ago, calling it a stash. “I don’t want anybody stashing taxpayers’ money anywhere.”
Kramer responded that the establishment of the fund was open and transparent. She reminded Hewitt that the commissioners had voted to use $1 million of the reserve for the third building at the Southern Maryland Higher Education Center.
The most obvious target because it is the biggest target for budget cutting is the school board budget that commissioners have not begun to scrutinize. That is scheduled for next week. The school board is asking for county funding of $7 million more than the current year, including $4 million for employee STEP increases and $2 million to open the Captain Walter Francis Duke Elementary School.
The commissioners also haven’t decided whether to put any pay raises for county employees in the budget. But they did decide at a March 10 work session to implement a reclassification of employees at a first year price tag of $336,000. Hewitt voted against that. He was concerned that the new classification system calls for a 2.5 percent annual increase based on merit and also contingent on funding by the commissioners.
“You are implementing a system that is more efficient and fair,” said Chief of Staff/Human Resources Director Sue Sabo.
The other departments have submitted budgets with relatively modest increases. The sheriff is asking for a 1.7 percent increase, or almost $600,000 more, which includes 11 new positions (4 for patrol, conversion of several part-timers to full-time and three for corrections).
Commissioner John O’Connor [R – 3rd District] suggested that the commissioners agree to the need for the new positions, but withhold funding until other unfilled positions are hired. O’Connor said he supported the deputies “These are the men and women who are running into the building when everyone else is running out.”
Sheriff Tim Cameron [R] said he didn’t have any problem with the suggestion and appreciated the open dialogue.
Kramer said she recommended against having “unfunded billets” in the budget.
Another potential way to reduce the shortfall that was discussed but not voted on was to increase the annual “residential solid waste and recycling fee,” which currently stands at $5. The general fund is subsidizing the solid waste disposal system to the tune of $1 million. If the fee was raised to $7 that shortfall could be eliminated.
O’Connor said he didn’t consider the fee a tax but “a cost of doing business.” He added, “We just haven’t caught up to where we need to be.”
The commissioners also tentatively approved a new deputy state’s attorney for the State’s Attorney’s Office due to increased work load.
They also agreed to unfreeze and reclassify a position in the Department of Economic Development early next year to give the new director, when hired, a chance to review the need for the position.
The commissioners have budget work sessions scheduled for Monday and Tuesday, March 16 and 17 at 1:30 p.m. At the end of the second session they anticipate finalizing a recommended budget to take to a public hearing on April 14 at 6:30 p.m. at Great Mills High School.
Contact Dick Myers at news@thebaynet.com