If it seems a little lighter than usual, that’s because it is. As currently proposed by county government staff, Calvert’s operating budget for the next fiscal year would be roughly $3 million less than the current year’s budget.
As he and other government leaders gave the county commissioners a rudimentary look at the spending strategy for fiscal 2024, Mark Willis, county administrator, stressed, “This is a draft. Money is tight.”
While no property or income tax rate increases are on the table, a few commissioners agreed state officials may be trying to get the board to do just that.
“We looked at every single line item,” Willis said, doling out most of the credit to Bruce Miller, finance and budget director, and his staff. “We cut out a lot of fat that had creeped in over time.”
As of Tuesday, the proposed operating budget stands at $377.7 million. Factoring in other budget items, including the capital improvement plan for the new fiscal year ($112.13 million), the entire spending plan weighs in at $563 million.
In a memo to the commissioners, which Willis summarized during the presentation, the county administrator said the current plan is to use $28.1 million from prior year fund balance for fiscal 2025.
He added that the capital improvement plan “really needs to have an overhaul.”
“I’d really like to see a deep dive into that,” Commissioner Catherine Grasso (R) said about the possible reprioritizing of projects.
Currently, one of the local government’s biggest construction projects, the new county administration building, is well underway. The structure’s estimated cost is $38.7 million with most of the funding coming from the sale of bonds.
“We got to the point where we just had to build it,” Willis said.
Linda Turner, deputy county administrator, said the county government’s allocation to the county’s public school system is to remain at the current fiscal year level of $154.7 million.
It was noted that the school system’s student enrollment continues to decline and county government has allocated funding well above the state’s mandated maintenance of effort requirement. The county’s public school allocation for fiscal 2024 is $18 million above the maintenance of effort mark.
Willis labeled a graph showing the state’s massive $22.9 million cut in funding to Calvert’s public school system “a thorn.” The cut was revealed late last year when Gov. Wes Moore (D) presented his proposed fiscal 2025 budget.
The cut is related to the money Calvert receives due to the presence of the Cove Point Liquefaction facility in Lusby.
The county had been receiving revenue from a payment in lieu of taxes agreement with the plant owner and operator, initially Dominion and now Berkshire Hathaway Energy.
“The state doesn’t capture revenues from PILOTs,” Commissioner President Earl F. “Buddy” Hance (R) said, referring to the payment in lieu of taxes. “When the PILOT expired the state captured that new [tax] assessment of $54 million and in their eyes we got a check for $54 million in new money and that triggered the wealth formula.”
Discussion of the state’s cut to education based on the liquefied natural gas plant roiled Commissioner Mike Hart (R), a Lusby resident.
Hart said while the plant has brought revenue to the county, Calvert paid a high price, as residents living in proximity to the plant have dealt with construction traffic, noise, inadequate emergency evacuation plans and the garish lights from the facility.
“It’s always daylight there,” Hart said, adding that other jurisdictions, including Baltimore city, fought to keep the liquefied natural gas facility out of their backyard. Calvert accepted “all the fleas that came with that dog. I think it’s disgraceful. Why are you penalizing one of the smallest jurisdictions in the state? We seem to be easy pickings.”
“This is something where we need to get the revenue back,” Willis said, adding that county government and education leaders have attempted to get the ear of the governor, the state department of education, legislative services and the state department of assessments and taxation.
“The five of us don’t want to raise taxes,” Grasso said, adding her concern that “this is just the beginning.”
The county government staff will present its proposed budget to the public at a hearing March 19 beginning at 7 p.m. at the county courthouse in the commissioners’ hearing room.
One of the presenters will be Andraé Townsel, superintendent of schools, who will present the board of education’s proposed budget for inclusion into the county’s plan. The school board’s vote on the superintendent’s budget was scheduled for March 14.
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