WICOMICO EXECUTIVE PROPOSES $122.5 MILLION OPERATING BUDGET FOR FISCAL YEAR 2010…NO NEW OR INCREASED TAXES REQUESTED… FURLOUGHS SCHEDULED FOR FIRST TIME
Wicomico County Executive Richard M. Pollitt, Jr. submitted his Fiscal Year 2010 Operating Budget to the Wicomico County Council today. The budget is $122,538,919, which is about $7 Million under the current FY 2009 operating budget of $129,535,922. New Operating Revenue for FY 2010 is estimated to be $117,970,218, and the difference between anticipated revenue and expenditures was achieved by a series of spending cuts combined with the use of a portion of the county’s “carryforward” and “rainy day” funds and from a loan from the Solid Waste Enterprise Fund.
“Crafting this year’s budget has been a challenge.” said Pollitt. “The County has been hit with almost $6 Million in cuts from the State of Maryland. In addition, revenue from personal property taxes has dropped sharply, as has interest income on investments,” continued the county’s first executive, “but we have not forgotten our priorities to fund education and public health and safety.”
At the beginning of the budget process, Pollitt ordered all department heads to reduce their operating budgets by 10%. In addition to the economies realized by that, the executive ordered further cuts and saving measures.
Maintenance of Effort Waiver – Board of Education $2,000,000.00
50% Funding of Pension Plan $1,337,582.00
Zero Funding of postretirement benefits (OPEB) $1,431,684.00
Anticipated Savings from Refinancing of Bonds $700,000.00
Reduction of Wor-Wic Appropriation $561,056.00
4 Employee Furlough Days (no county layoffs in over 30 years) $333,402.00
2. The funding that “fills the gap” between estimated operating revenue and budgeted operating revenue includes:
Use of “Rainy Day” Fund $472,700.00
Use of “Carryforward” Fund $4,096,001.00
Loan from Solid Waste Enterprise Fund $1,000,000.00
Pollitt explained that the funds taken from the Solid Waste Enterprise Fund are considered to be a loan that will be paid back, with interest. The money in the Fund is to be used to build new cells at Newland Park as needed. According to Public Works officials, a new cell is not planned for the near future.
“Of all of our county departments, Roads has been hit the hardest,” said Pollitt. “Almost all Roads revenue comes from the Maryland State Highway Users Fund. Last year, Roads received about $6 Million. This year, it will be about $3.4 Million,” explained Pollitt. “We expect that this drastic cut will dramatically curtail our paving operations. One redeeming factor in the situation is that we expect to receive $1.8 Million in Federal Stimulus Funds and, while this has many restrictions, we anticipate making good use of the money to keep our roads safe. ”
“As I have mentioned, Wicomico County enjoys an excellent rating with the three major Wall Street bond ratings firms. The steps we are taking in this year’s budget follow our consistently conservative financial management practices. I have sought professional advice and have been assured that the use of a portion of our rainy day fund and a limited use of our fund balance are responsible and acceptable actions that are well within the expectations of Wall Street. This is of the utmost importance in ensuring a good bond rating when we sell our bonds in the Fall,” concluded Pollitt.
14 comments:
Looks like County employees, myself being one, take the hit in leiu of the revenue cap...I don't EVER want to hear you folks rip in to Mr. Pollitt saying that he doesn't look after the citizens of Wicomico County! He is a good public servant and it is way harder for him to have to let down the employees that he works closely with.
And just to let you know, that $7M deficit would have been solved with an average increase of about $175 in property tax for one year only. Instead, he makes cuts in other areas, borrows funds, initiates furloughs and taps into the reserve funds to make ends meet. Just remember in the future-YOU want new schools? YOU want nice parks? YOU want fire and police protection? YOU want newly paved roads? Then YOU need to pay the taxes! I don't blame these budget issues and results on Mr. Pollitt, I blame them on the selfishness of the County's tax payers. I get sick of hearing people b!tch about taxes, but turn around and want everything else!
I would like you all to thank Mr. Pollitt the next time you run into him because he is truly working for you and tries his best to make ends meet despite the lack of financial support from the citizens of Wicomico County.
anonymous 12:55, I would like to thank YOU for sticking with us during these hard times.
12:55pm, At least you still have a job, and for the record, State employees have already taken several furlough days. What makes County employees so special that they shouldn't have to take furlough days? The tax payers have spoken, the revenue cap is here to stay. Now you have a choice, stop your crying and get back to work or quit. The tax payers really don't care because you can be replaced.
12:55pm, The taxpayers are not selfish, the County Council was selfish when they raised our taxes 24% in one year, so we voted and won the revenue cap, now Rick and the council can feel the pain that we felt years ago. Not fun is it?
The roads thing has me puzzled. Fuel taxes were raised to generate more road money, but I guess everyone drove less, so less gallons were taxed. But Obama has pounded the "roads, bridges, and infrastructure" gavel so loudly along with "Yes, we can" promising road job money to all. All in all, we get taxed more, and receive less back.
I see how this works now.
Do not let the county BORROW their way around the budget. This is reality, the bubble was the fantasy. Things are going to be like this. It is not temporary.
2:31pm, You are so right, I think layoffs are coming to county employees in the near future.
Joe, I thank you for your appreciation.
Anon 1:36 and 1:50,
Just because I work for the County, does not mean that I am at fault for the mistakes of the past and/or present. Wicomico County has the 5th lowest tax rate out of the 23 Counties in the State of Maryland. Wicomico County is also one of the worst Counties in Maryland in the education system rankings...do you think that there is a correlation? There was an article in the paper today about the new Bennett Middle property aquisition, how are we going to pay for that? How are we going to meet the State's requirments for funding? One answer, TAXES!
Please don't get me wrong, I am not complaining because the money is being taken out of my pockets because, really, it isn't that much and everybody could use a day off here and there. As a County resident, I would have to pay either way whether through taxes or furloughs. I am EXTREMELY grateful to still have my career-I know that many aren't so lucky. I'm complaining because this is simply a quick fix. Mr. Pollitt said that this was the last resort. So what will happen next? Layoffs at the County? Possibly, but it wouldn't completely solve the problem because over 1/3 of the Counties employees would have to go inorder to make up a $7M deficit and it would also cause services to be further reduced. Cutting education? That's never smart. Eventually, taxes will have to go up-it's only a matter of time. We went through all the times of wealth and prosperity and now we have to deal with the bad times. How long will it last? I don't know, the best economists don't even know.
To call the Council selfish is not necessarily right on. I was not around then, but 24% is alot; however, they were still operating in the interests of the citizens-believe it or not. The citizens are the ones that want the capital improvements, not the Council. We now have the County Executive to help keep that in check and reasonable.
I'm not asking you to agree with me or feel sorry for those who have to sacrifice some pay; I just want you folks to understand that you pay for your own wants/needs-the more you want/need, the more you have to pay in. It's that simple.
ANON 2:31/2:42
How do you suppose the County makes up the deficit? This isn't a national or international economy-the money that tax payers pay in doesn't go outside of this County so how do you make something out of nothing? I love the ignorance of the common person that has absolutely no idea what they are talking about!
Salisbury has one of the worst
Educational Rankings?? Think that
has any thing to do with our
City haveing one of the highest
crime rates per capita? Could it
be WHO we have in the school
systems here that is giving us this
rating??
THERE WILL BE NO END TO THE COUNTY
EXPENDITURES---EVER!!!! If that
cap is lifted, further abuse will
land on the tax payers shoulders!!
Seems there is WAY to much money
going out "At the Top of the Ladder", & far to much is wasted
on County cars , & unaceptable work
ethics of some employees who only
work part of the time they are
paid for. I know these things for
fact ,stated from many County
employees themselves about their
"own!" Investigation of waste
needs to be done---BIG TIME!!!"
Response to 12:55 Post
Well now let us look at Wicomico's total tax picture.
1. Sales tax raised from 5% to 6% result - Demand Destruction - resulted in less revenue income this past year.
2. Inventory tax - (only County in Maryland to have it)
3. Real Property tax assessment cap is tops at 10%
4. Piggyback tax -(Income tax)- is maxed out at top too at 60%
5. Hotel/Motel Room tax now added to fund the GWE - Civic Center Thank Page Elmore for implementing 1% fee.
6. Ticket fee surcharges are now in place for the GWE
7. Flim flam Enterprize Designation and bookkeeping designation for the GWE to mask operating deficit. Case-in-point Rec Department pays rent and then itemizes it as income for Civic Center.
NEED I SAY MORE. . .BECAUSE I CAN CONTINUE IF YOU LIKE.
3:06pm, This common person pays heavily in taxes and how the hell do you know what I know? You are ignorant because you think you know more then others on this blog. Well think what you want because your opinion is useless on a blog, but I do know a few things for you to ponder; one is that Voice kicked the County's a$#, and my taxes will never go up 24% again, so chew on that while you try to fund all your wasteful projects.
"Employee Furlough Days (no county layoffs in over 30 years)"
Looks like somebody forgot about the 29 Deputies that were layed off in 2004, thanks to the extreme mismanagement of Hunter Nelms and his staff.
It is so amazing how some of you can support pollitt and his lies.he is not a man of his word,nor is he truly concerned about us.keep the cap.let them feel what we have felt and whatever you do -don't praise this man or his croanies.
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