Public hearing on budget focuses on schools
By Bob Lassahn

The proposed Worcester County budget for FY 2006/2007 may have increased by 18 percent to $166 million, but the property tax rate remains the second lowest in Maryland and the income tax levy is the lowest in the state, taxpayers attending a recent public hearing were told.

More than 70 people showed up for the public hearing on the proposed county operating budget at Snow Hill High School on May 2.

After a welcoming statement from Commission President James Purnell, Chief Administrative Officer Gerald T. Mason presented a slide providing an overview of county demographics, employment and other data influencing the budget. He also reviewed some of the key issues in the budget requests before the commissioners, including a statement of the “Constant Yield Tax Rate,” a figure representing a property tax rate that would generate the same revenue as the previous year considering the new round of assessments. According to Mr. Mason that figure is calculated at 62.2 cents per $100 of assessed value as compared to the current rate of 73 cents per $100 of assessed value.

Mr. Mason highlighted figures indicating the savings to Worcester County residents as opposed to nearby counties, especially the low property tax and income tax rates. Slides enumerated the theoretical savings in dollars for median income families compared to both Somerset and Wicomico counties.

The requested budget of nearly $166 million, includes revenue estimates of slightly more than $165 million, a difference of  $651,000 that must be reconciled through reduction in expenditures or increased revenue.

A total of 27 speakers stepped up to the microphones (two took a second turn) to provide input the commissioners might consider in their deliberations. Coastkeeper Jay Charland of the Assateague Coastal Trust put in a good word for Development Review and Permitting with emphasis on the Department of Comprehensive Planning focusing on the environmental aspects of their endeavors. Several other speakers touched briefly on a variety of departments, agencies or issues they deemed worthy of consideration and a few lonely voices called for some restraint in spending, but the majority of speakers were there to support the Board of Education.

A total of 19 speakers, many representing the various School Improvement Advisory Committees appeared to encourage the commissioners to fully fund their individual school’s budget requests and to support the requested pay raise for personnel. One speaker, Patrick Lee, a sixth grader from Berlin Intermediate School, offered his thanks to the commissioners for their support of the school system.

The requested Board of Education FY 2007 operating budget is just over $64 million, up by more than $6 million from the previous budget of almost $60 million, or nearly 11 percent. When school debt allocation and Other Post Employment Benefits (OPEB), a new budget category based on Government Accounting Standards Board (GASB) recommendations to account for future liabilities related to health benefits and other post employment perks for retirees, the total peaks at more than $76 million and represents nearly 45 percent of the total budget under consideration.

OPEB is not a mandate handed down from the GASB, but it is something that in the long term could influence bond ratings. Governments are being encouraged to establish a trust to provide for future benefits they have promised to their employees rather than continue a “pay as you go” approach.

For Worcester County the liability associated with these calculated future benefits could presently top $17 million, but there is no requirement to put up that full amount. Rather the suggested approach is to make some reasonable contribution toward the fund and establish a policy where each budget round chips away at the figure. Worcester County is considering an initial contribution to such a trust of $10 million.

The commissioners will take information they received during public hearings to at least three scheduled budget work sessions. They are scheduled for May 9, May 18 and May 23, with a fourth session tentatively scheduled for May 30 if it should become necessary.

The Worcester County Code requires the commissioners to adopt the budget and establish the annual levy of state and county taxes on or before the first Tuesday in June. The commissioners will meet on June 6 and should adopt the budget during that session.                                                                    

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