Miller: Why subsidize counties?
Senate President Thomas V. Mike Miller’s desire to share the state’s budget pain with local jurisdictions isn’t sitting well with County Executive Jim Smith.
“Everybody is dealing with some fiscal strain,” Smith said. “To pass it along to someone else because you have the votes isn’t sound fiscal management and isn’t good government.”
So far, Baltimore County government has been spared having to make budget cuts or furlough or layoff employees.
The county is expected to post a $15 million surplus while other jurisdictions, including the state, are furloughing or laying off employees. Last fall, Smith promised county employees would be safe from such actions this year and next.
Smith attributes surplus and job security to the county’s history of conservative budget management including restructuring pension benefits for its own employees. Miller’s plan smacks of punishment.
“The county has worked hard to be fair to its employees,” Smith said. “I don’t think local government should be penalized for taking that approach.”
Miller wants to ease state budget pressures by cutting state aide to local jurisdictions.
“Why are we continuing to subsidize the counties?” Miller said Feb. 5 on the C4 Show on WBAL radio. “They are 40 percent of our budget.”
Miller specifically named Baltimore County as one of the jurisdictions that has not felt the effects of an economy that is circling the drain.
Miller is expected to introduce a bill that would pass along a bigger share of the state’s $635 million teacher pension obligation to local jurisdictions. Baltimore County’s full share of that is estimated at about $75 million — an amount equivalent to a 13-cent increase in the county’s property tax.
Smith said he has no comments on Miller’s proposal because he hasn’t seen it. Still, the prospect is of more concern now than it was a month ago when Miller made similar comments (without mentioning Baltimore County).
Sources in the Smith administration downplayed Miller’s comments and said they had faith cooler heads would prevail as state budget discussions moved forward.
Now Smith is looking to meet with Miller and may have to come up with a way to pick up a teacher pension tab that could be as much as $75 million.
Even if Smith had the stomach to pass along such a property-tax increase to county homeowners (he said he doesn’t) a 13-cent increase would be politically untenable.
Right now, Smith is not talking about a Plan B for making the pension payments if they are passed along.
Smith said he hopes to avert the whole issue and is seeking a meeting with Miller possibly as early as Feb. 11.