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Monday, March 30, 2009

Wicomico County’s Tax Cap Could Cost Big Bucks

In the next couple weeks we may learn that the “tax revenue cap” can be harmful to the public interest. County Executive Rick Pollitt recently announced that his proposed budget has a $12 Million deficit in revenue, which must be balanced by spending cuts. In order to obtain the maximum state funding for the school system, he plans to seek a waiver of the so-called “maintenance of effort” rule, which mandates that a county cannot reduce its own funding of the school system (on a per pupil basis) from the previous year.

Many and probably most counties in Maryland are expected to do likewise in light of the reduction in their revenues from income tax and property tax sources, which is especially great in Wicomico County because the tax cap has resulted in significant reduction in the property tax rate in recent years. That, however, may impair the chance of obtaining a waiver – the state law requires that a county must demonstrate that its financial conditions “significantly impair” its ability to fund schools at the same level as in the prior year.

The fact that Wicomico and a few other counties are continuing to reduce their tax rates and revenues as the State faces a fiscal crisis has resulted in critical comment by many legislators from counties that have not done so. Because there is no precedent in granting maintenance of effort waivers, the outlook is uncertain at best whether the tax cap factor will result in denial of the waiver request. But not much sympathy may be available in Annapolis.

The attempt by the Maryland Association of Counties (“MACO”) to obtain a blanket waiver by the General Assembly – as happened about 15 years ago – seems unlikely to succeed this year. So Wicomico County may find itself between a rock and a very hard place, thanks to the tax revenue cap, in striking next year’s budget.

Perhaps the father of the tax cap, Don Coffin, will have words of wisdom to guide Mr. Pollitt and the County Council as they decide whether to spend money to buy more land for another park as they simultaneously decide on what spending to cut in the budget.

32 comments:

Anonymous said...

Bear in mind also that as legislators in Annapolis along with the Governor , decide how to dole out the bucks,they take a very dim view of sending those dollars to counties that have hobbled themselves with poorly thought out caps like ours.

The chicken has come home to roost.

doug wilkerson said...

This doesnt affect PRIVATE schools in any way does it? Didnt think so.

Anonymous said...

As a parent I would like to thank Don Coffin

Anonymous said...

you say the property tax rate has fallen then why have I paid more taxes for the last 10 years?

Anonymous said...

The chickens came to roost when just in the last several years the county was giving out pay increases to its employees at a rate much above the cost of living increases on average nearly 8%! Can you imagine the budget shortfalls that we would be facing today if the revenue cap was not in place. The politics and the mind set of people like Pollitt who have in fact bankrupted the US goverment and many states has to be stopped.

Anonymous said...

Cut the PORK! We dont need another park...stop spending and tighten your belts like we have to do!
You think its bad now, how will you make ends meet when we STOP paying taxes? Can you take a hint...no more tax hikes!

Anonymous said...

As a tax payer, I would like to thank VOICE. If not for the revenue cap, we would have gotten nailed with a HUGE tax increase and I am sure the county would be getting ready to stick us with another increase in the near future to make up the shortfall.
Frivilous parks and recs spending needs to be curtailed as well as county grant funds doled out. It is now about needs rather than wants, at least that is the way it is at my house. All those in favor of higher taxes, please make the check out to Wicomico County and mail it in.

Anonymous said...

Funny how things go-around-and come-around.

It's alright for the School Teachers, Law Enforcement, and Fire Fighters to seek a Property Tax ememption on their own houses but when the taxpayers seek to correct the hypocratic system by intiating the revenue cap they are ridiculed.

THANK GOD FOR THE REVENUE CAP.

Anonymous said...

Before anyone ridicules the Revenue Cap you had better go look at this Maryland General Assembly House Bill.

It attempts to exempt School Teachers from paying any Real Estate Property tax on their own dwellings while increasing all other peoples.

http://mlis.state.md.us/2005rs/billfile/hb0965.htm

They have tried it more than once to.

I'm all for the Revenue Cap too. What's good for the goose should be good for the gander.

Anonymous said...

I paid 5500 $ in property taxes last year, and I don't even have kids. I have never complained about paying my share, but between the city of salisbury and if the county raises those taxes, I not only have to move out of the city limits, but probably the county too. I might be looking at Delaware to establish residency as well as start my business.
I too saw Rick's thing on 47 about the westside park he still hopes to get going. Use the damn open space funds to upgrade what is already out there and underutilized. Enough already

Anonymous said...

Well I dont care that the county workers got a raise....When was the last time they got a raise? There are many people in the County/City who make ALOT more that the common county/city employee......I havent heard the Chief of Police, Wicomico County Sheriff,Fire Chief and all the Political Big wigs...Which includes Mr. Pollitt, giving back some of the BIG 6 figure paychecks they are taking home back....Why pick on the $30,000 dollar and under employees...

Anonymous said...

Is This Ironic or What ???

That land the County wants to buy for a park near Hebron is owned by the son of Don Coffin, who got the VOICE organization – that is responsible for the tax revenue cap – going. So now the County, which is now strapped for cash thanks to the father, planning to buy that farm from the son for something like $10,000 per acre, which is a lot more than the son paid for it a few years ago at the top of the real estate boom and could not get half that price on the open market today.

And I thought the feds were the only ones who burned through money like that.

Anonymous said...

Hey Joe:

Didn't Pollitt give special salary to the top employees -- does that sound familiar what with AIG and those banks.

Anonymous said...

God bless Coffin! Somerset County, wake up. We need someone like Don Coffin to step up to the plate and make our county aware that we do not expect any increses in property taxes. We are tired of being told that our taxes are being lowered when in fact they go up every year. Lower the rate to equal the increse in assesment and then just a little more if you want to say you lowered the property taxes. If not than we get stuck with an increase.

Anonymous said...

Its time to clean house in Wic. co. This time we're starting at the top.
That pork park cost us more than Pollitt's worth alone! I'm sick n tired of him spending his time finding reasons to raise taxes instead of ways to cut spending!

Anonymous said...

Had the voters not voted for a county executive, the county budget would be a lot less. This department added a lot of dollars to the budget.

Anonymous said...

What? Don Coffin's son owns that property?!!!

Good suggestion 2:38. "Use the open space funds to upgrade what is already out there and underutilized."

Anonymous said...

This county still spends on unnecessary items. They are 1 of a few counties nationwide who pay for retiree health insurance for BOTH the retiree and his dependents. Money is being spent on those who never worked for the county for many a year. Also how about take home vehicles, why are there any? You could go on and on on ways to save but management can't or won't make decisions which affect themselves.

Anonymous said...

How much are county bonuses in total this year? Seeing how much the county was losing from theft, where is all that found revenue now deposited? 65% piggyback tax, highest in the state, why can't we have a balanced budget?

Oink Oink cut the pork

Anonymous said...

616 as far as take home vehicles thank God they have them I have heard of several calls to service off duty deputies in take home cars responded to and were able to catch suspects of drunk driving, B&E in progress and other crimes while off duty in take hame cars. take home cars make our county safer the more police driving in the county the better. thanks to all law enforcement for what you do

Anonymous said...

616 what take home vehicles are you talking about

Anonymous said...

I'll tell you what's funny, we hired a County Executive and we still have the same number of County Council seats, with Matt Cramer as the Administrative Assistant who is also drawing a salary,now that's funny. These double dippers never have enough money, the same goes for the greedy SOB's Cannon and McCain
I voted for the tax cap and would vote for it again.

Anonymous said...

You and Rick best not be so criticle of the tax cap. It was voted in by a clear majority of the voters in Wicomico County and I think we should accept that and live within its means. There is a lot of fat in most departments budgets, including the Board of Ed, so this aught to tighten that up some, I hope!

Anonymous said...

I am glad there is a cap. We have too much government as it is. We must slowly starve the beast of government until it whithers away.

Anonymous said...

The whole tax cap thing started over a fee on property transactions. The real estate people led by Coffin, cried that they would lose all kinds of money over it. Please show me how much money you lost during the housing boom? They were swimming in money, and I hope they are suffering now, although I doubt it. They put all the Board of Ed employees salaries in the paper to show how over paid they are. I would like Don Coffin tp post his yearly earnings since the tax cap. I agree we need smart spending (unlike the feds), but we shouldn't handcuff ourselves either.

Anonymous said...

I don't think the new park has anything to do with the county deficit. The open space funds cant be used for education and the county does not get to keep it if the park is not purchased. I'm a little league parent and I can tell you that we need more fields for the kids. The 3 fields on Pemberton are not enough for the 20+ teams.

Anonymous said...

10:20 I agree you need another park for ball fields. I recently spoke at the public forum in support of that park. But I have to admit I was really torn. The economy is in the tank - we all know that. The open space money should have been diverted by an act of legislation to help balance the budget or something more important during these incredibly hard times. Since I knew that our state legislators don't have the balls to do such a thing, I knew that if we didn't use the money here it would have been used to buy a park somewhere else - in another county. I really feel like this about it - If parents want a park for their kids to play ball - let the parents pool their money and buy the land. Seek funds through donations and stop taxing everyone to fund these projects.

Anonymous said...

There are plenty of parks for little league and other activities that are under utilized, please someone please explain why we need another park. Government needs to stop purchasing land and use the money for other things which are far more important. For example our schools, police, etc..., this is where the money should go. I was for the revenue cap and if asked to vote for it again I would.

A Wicomico County Resident

Anonymous said...

We that tells me that the state is not funding priorities. Screw the parks for a while, we need better schools way before we need more parks. Move open space money to education and just expand state park property to prevent development idiots.

Anonymous said...

you people are amazing.You complain about overdevelopment and then when state open space funds are used to create a park and prevent development you complain about that.

You just like to complain.

It's really terrible spending money on a place for our kids and families to recreate isn't it?

What a bunch of curmudgeons.

Anonymous said...

There are plenty of places to recreate with your family and friends, and most have ball fields. Here is the list that I can come up with:
Adkins Mill Park, Canal Walk Park, Cedar Hill Park, Cedarhurst Playground, Cherry Beach Park
Clara Road Rec. Area, Community Park at Winter Place, Cove Road Rec. Area
East Wicomico Little League Complex, Edgewood Park, Emmerson Holloway Park, Fairfield Park
Fruitland Rec. Park, Gordy Park, Harmon Field Playground, Hebron Park and Rec. Area,
Indian Village Neighborhood Playground, JCC Park, Kilburnie Neighborhood Park, Lake Street Park,
Leonards Mill Park, Mardela Springs Park, Mason-Dixon Sports Complex, Monument Park,
Municipal Zoo Park, Nanticoke Park, Naylor Mill Park, North Lake Park,
Pemberton Historical Park, Pemberton Little League Park, Pittsville Playground,
Salisbury Zoological Park which has Bens Red Swings, San Domingo Park, Schumaker Park,
Sharptown Park and Rec. Area, State Street Park, Tyaskin Park, Waterside Park, Wetipquin Park,
Wicomico County Athletic Complex.

Anonymous said...

1:48

Boy that was neat that you could "CUT AND PASTE" those facts. However, some of those "parks" you listed are no bigger than an average back yard. And with all the new people thos realtards have brought over here by touting the lack of taxes, they have also brought kids. Those kids come from places like Glen Burnie, and they are used to parks. And we all know they wanted to move here for a change, but what they meant was they want to change here.