Taxes going up again as economy still fizzles

LEONARDTOWN (March 31, 2010) --- For the third year in a row St. Mary’s County property owners have seen their property values drop as the recession enters its deepest and deadly depths and for the third year in a row, in spite of the urging of St. Mary’s Commissioner Larry Jarboe, the Board of Commissioners, on a 4-1 vote, refused to adjust the tax rate to counter the effects of increased assessments by the State.

At the Board’s meeting on Tuesday, on a 4-1 vote, Commissioner Kenny Dement (R. Wildewood) joined the three Democrats on the Board, Raley, Russell and Mattingly to send a draft budget to a series of public hearings in April.

Jarboe called for deeper cuts in spending and noted that the failure to adopt the Constant Yield tax rate would provide for a nearly 7 percent increase in property taxes.

“Like most of our citizens, County Government finds revenues down in most of our sources: income tax, permit fees, service charges, and especially highway user fees,” said Jarboe. “Only the property tax is generating a 6.5 to 7 percent increase.”

“We can blame the State for unreasonable assessments or we can compensate the taxpayer by reducing property tax rates,” said Jarboe to his fellow commissioners.

“This budget will fund step and bonus increases, provide free concerts, scholarships, a celebration of Juneteenth, subsidize seed oysters destined to die, and a host of other special interests beyond the basic need to fund education, public transportation infrastructure, and public safety,” said Jarboe.

“While we are in a National era of unemployment and home foreclosures, St. Mary's County residents will see higher property tax bills,” said Jarboe. “This is the time to hold the line on property taxes, not allow the bills to increase.”

Last year Jarboe argued for making $6 million in cuts so the county could maintain the constant yield, and like the year before, the other board members said that the county’s revenue was in good shape. They couldn’t have been more wrong as by September the Board was faced with more than $6 million in reductions in grants by the State, just as Jarboe had warned.

Actual property tax revenue for fiscal year 2009 amounted to $87,266,566 while the approved budget for 2010 was predicated on the revenue being $93,266,022. The budget for 2011, the coming fiscal year, calls for that figure to grow to $99,250,867, which amounts to a 6.4% increase.

Commissioner Dement has shown repeatedly that he does not understand the complexities of the county’s assessment process or that he may be trying to dupe the voters who are irate over his continued support for tax increases.
Dement repeated states to the public that he and his fellow commissioners are not raising taxes but the law set up the constant yield as a mechanism to negate higher assessments.

Income taxes which are piggybacked on the state income tax amounted to $61,471,674 in 2009, $65,300,000 in 2010 and are projected at $60,000,000 in 2011.

The St. Mary’s budget calls for a reduction in staff by 12 employees who have been grant funded and when the state cut those grants, the county had long promised those jobs would end. Another 13 positions are being left vacant under the job freeze.

The public hearing is set for April 27th at Chopticon High School, located on Rt. 242 in Morganza.
The General Assembly is considering many cuts to the state budget which will likely cut funds to the counties and could shift pension costs for teachers from the state to the counties.

The St. Mary’s Board, in stark contrast to most other state and local governments, decided, again on a 4-1 vote with Jarboe opposing, to give $1,000 bonuses to 56 county employees and to give raises to others.

PG County is laying off nearly 800 teachers and teachers aides, Baltimore City is going to lay off 300 cops and even Montgomery County is laying off staff. Charles County has had layoffs and furloughs.

But in St. Mary’s a $2 million round of raises for teachers is in the budget.

Commissioners Jackie Russell and Dement have filed for reelection and both are faced with strong opponents.
Dement has been furiously working to register his mostly Democratic support as Republicans as he has a Jarboe slate member, Rich Johnson, on the ticket running against him.

Randy Guy of Clements has filed on the Jarboe slate to run for the post of Commissioner President, currently held by Russell.

Commissioners Dan Raley (D. Great Mills) and Tommy Mattingly (D. Leonardtown) are term limited and cannot run again.

Jarboe continues to point out the shifty deal to buy the Hayden Farm for more than twice the appraised price in a rushed process which saw the board hold a public hearing on the purchase on Christmas Eve.