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Wednesday, January 16, 2008

Joe Holloway Advocates Tax Cut

Wicomico County Councilman Joe Holloway (R-5) surprised citizens and his fellow council members Tuesday by advocating a reduction in the County's income tax rate. A detailed proposal probably will not be possible until after County Executive Rick Pollitt introduces his proposed budget for FY 2009. After introduction of the proposed budget Holloway will be able to introduce spending cuts to pay for a tax cut.

Reminding those in council chambers, as well as those of us watching on PAC-14, that county revenues belonged to the taxpayer and not the government, Holloway spoke of several recent events which led to his proposal. "Last year, salaries for county employees rose by over $3.5 million". The county is proposing to purchase property for a park on the West Side while the county already owns land that was earmarked for a park just a few miles away. What may have been the smallest expenditure in dollars, but the biggest symbol of wasteful government spending, was a pen given to Holloway by the Department of Tourism which cost the taxpayers $23. Interestingly, the Department of Tourism is run by Gary Mackes who also heads the parks department. It was Mackes who originally proposed the purchase of the Davis property on the West Side.

Holloway believes that a tax cut would best serve the county government and the taxpayers of Wicomico County. "If the government has it (money), they'll spend it. Even if it is on something as unnecessary as an overpriced ink pen. The citizens of Wicomico County are the best judges of how their money should be spent and a tax cut will put some of that money back in their pockets (where it belongs)."

Currently, Wicomico County is approximately $10 million dollars behind in needed road repairs. Myriad other capital improvements are needed throughout the county, yet the current administration is willing to consider park construction and allows a department head to give away expensive souvenirs.

As someone who never supported the revenue cap, and a strong supporter of Rick Pollitt's, I could never in good conscience advocate a repeal given the recent willingness of county leaders to support the O'Malley tax increase and a lack of willingness to support meaningful fiscal reform. Such reform should include heavy cuts in the administrative budget of the Board of Education and a complete end to foolish spending (i.e. the pens) no matter how small. While I am loathe to advocate additional government spending, perhaps it is time for the County Council to consider the hiring of an internal auditor (which is provided for in the Charter).
cross posted in Delmarva Dealings

21 comments:

Anonymous said...

I'm starting to like this Holloway guy. pens, tax cuts etc. I like it....

Anonymous said...

If they stop that wasteful spending, they would have the funds for that "tax differential" payment to the City of Salisbury that Barrie Tilghman wants.

Anonymous said...

What specific cuts do you want to see in BOE administration and still keep in compliance with Federal and State laws?

In Fiscal 06, Wicomico spent less per pupil (even factoring in administration) than Worcester, Somerset & Dorchester counties, and below the state average for all counties in MD:

Worcester: $ 11,907
Somerset: $ 11,308
Dorchester: $ 11,004
State Avg: $ 10,974
Wicomico: $ 9,692

Source: 2006-07 MD State Department of Education Fact Book, pp 26-27.

Anonymous said...

Anon @ 7:35:

That spending data includes the state funding, so can you provide the numbers for the County funding only? This part is more significant and might be different in terms of the ranking.

Bob said...

I can really appreciate Joe's efforts to cut wasteful spending. I think that should be one primary goal of every elected politician. Tax cuts? I don't know about that one. Property taxes are getting lower litle by little as a result of the property tax revenue cap and the growth in Wicomico County. Now as the growth slows due to an impending recession and an overflowing real estate supply, that is likely to slow and eventually reverse. But I would have to see something on paper before I would support a tax cut. I have to wonder though. Will Joe be as quick to divulge the costs of the impending legal fees for the upcoming court battle to fight the referendum result?

Anonymous said...

The County's revenue may be taking several hits next year:

1. Reduced state funding -- the O'Malley plan

2. Lower property tax receipts -- the "tax cap" on this revenue source has a nominal 2% increase each year, PLUS the tax on new development on the tax rolls during the year. That extra amount has been significent in the past several years because of strong growth, but it is likely to be much lower due to the reduced development now.

3. Lower fees (school impact fee, etc.) due to lower development.

4. Lower sales tax receipts.

And even if some of these don't actually decrease, the rate of increase will surely be less than in recent years, while costs (gas, electric power, etc.) are still skyrocketing.

We better wait to see the projected amounts before considering Holloway's proposal, as much as I would like to pay lower income tax.

Anonymous said...

Wicomico County Aid for Public Education:

(In Millions)

FY04 - $ 45.7
FY05 - $ 46.1
FY06 - $ 46.9
FY07 - $ 48.3
FY08 - $ 49.4

So over 5 years, Wicomico County has increased aid to local schools by $3.8 million.

Over time, local Education spending as a % of the county budget has fallen:

Education (preK - 12) as a % of County Budget:
FY01 - 47.10%
FY02 - 46.25%
FY03 - 46.14%
FY04 - 45.96%
FY05 - 44.99%
FY06 - 43.24%
FY07 - 38.22%
FY08 - 37.47% (Current Year)

Sorry I don't readily have county spending trends for the other counties, but I am certain it is not declining like this.

If you check the accuracy against county reports, be sure to separate out payments to the county Library and WorWic. County presentations often lump them into the "Education" category especially in their pie charts.

Anonymous said...

It seems that Holloway drank too much of what Prettyman brought to the Council meeting yesterday!

Anonymous said...

If Holloway wanted to save money he would look into cutting the salary of people like Gary Mackes and the head of the BOE. Neither of them are worth 6 figures. I'm sure there are other dept heads that could take a cut.

Anonymous said...

Mr. Holloway would better serve the citizens of the county by also being honest about how much the county has in reserve funds. It takes more than just pandering about a tax cut, and bitching about a $23 dollar pen to appear responsible. I'm not surprised this blog has crowned him king after his grandstanding. When Mr. Holloway decides to cut, it will be this site that will give us the tragic details of who the cuts hurt. You can't have it both ways. It serves none of us well.

Anonymous said...

Inquiring minds want to know:

When Holloway and other members of the Council go to those "MACO" meetings in OC (summer) and Cambridge (winter) do they commute or stay in resort hotels like the Hyatt and Princess Royale at the taxpayer's expense????

Anonymous said...

Joe Holloway for county executive. You could cut 25% of the county work force (excluding teachers and the sheriffs dept) and the average working taxpayer would not see any reduction in services!

Anonymous said...

Holloway has succeeded Prettyman as the Council's resident (and Republican) budget/tax grandstander.

Anonymous said...

Here's another potential County tax revenue hit in the next fiscal year -- this is from a summary of the General Assembly's special session in November published by the Maryland Municipal League ("MML"):

"At the urging of House Speaker Michael Busch, MML offered an amendment during the special session requiring counties to share one-third of recordation tax monies collected on property transfers within municipal boundaries. This effort was mounted to help alleviate over-reliance on the property tax at the municipal level. It is estimated that, on average, municipalities rely on the property tax for almost 60% of their general fund monies. The League successfully conveyed the message relative to municipal over-dependence on the property tax and the need to expand existing city and town revenue bases. But as the session became more frenzied and legislators became more intent on addressing only the State budget deficit specifically, General Assembly leadership suggested that MML withdraw its amendment and instead introduce legislation during the 2008 General Assembly session to obtain authorization to levy and/or receive additional municipal revenues. The Speaker indicated he would again support MML's efforts during the regular legislative session next year.

Anonymous said...

Inquiring Minds:

A good source says that when certain council members go to those meetings in Ocean City they stay there and the County covers the tab. It's called "to the victor go the spoils", stupid.

Maybe someone can ID the perpetrators.

Anonymous said...

This Board of Education member has attended the October Maryland Association of Boards of Education (MABE) three day conference in OC at the Princess Royale for six years and has driven back and forth every day. I have been/am a presenter, committee chair and MABE board member and Leadership Training award recipient and never stayed overnight.

Anonymous said...

hey hobo joe, there is more to worry about in the county than a $23 pen!!!!

Anonymous said...

Anonymous said...
This Board of Education member has attended the October Maryland Association of Boards of Education (MABE) three day conference in OC at the Princess Royale for six years and has driven back and forth every day. I have been/am a presenter, committee chair and MABE board member and Leadership Training award recipient and never stayed overnight.

10:34 AM


My... what a dedicated member of the lawless teachers union. I am glad you drive back and forth because you are already overpaid and the County shouldn't have to foot your bills. You are nothing more than a glorified babysitter and if you are not happy with your job then you need to find another one.

Happy hunting my teacher friend!!

Anonymous said...

Maybe there is 1:03 pm, but where there's smoke ....

Anonymous said...

Anon 7:00 PM:

You have misunderstood. I am one of seven board members, not a teacher. We are paid $3,700 annually.

Anonymous said...

Anonymous said...
Anon 7:00 PM:

You have misunderstood. I am one of seven board members, not a teacher. We are paid $3,700 annually.

9:08 PM


Well your position is not nearly as important as that of an elected County Council member. These conferences are educational and it benifits the county taxpayers. This is no different than a department head attending some sort of continuing education seminar that benifits the company.