Here are the basics of the "grand scheme":
- Last year, Wicomico County funded the WCBOE with $700,000 ABOVE the state mandated maintenance of effort (MOE). The WCBOE proposes to transfer that money BACK to Wicomico County and then have the county transfer the funds back to WCBOE.
- A few years ago the county passed legislation enabling the WCBOE to establish a "School Construction Savings Plan" (SCSP). Any surplus left at the WCBOE is supposed to go into the SCSP. The WCBOE proposes that $1.3 million be taken from this fund, transfered BACK to the county, and then transferred back to the WCBOE.
In all fairness to the WCBOE, they claim that this is the best method of maintaining MOE and securing additional state funding. This is a valid concern given that the state supplies almost 3 X the funding for education as that provided by Wicomico County.
This does not mean that the this is the BEST solution. There is at least one other option, as pointed out by Councilwoman Stevie Prettyman (R-2). There is currently a multi-million dollar surplus in the WCBOE's "Rate Stabilization Fund".
This fund was originally explained to me by Fredericksen and several board members as a type of reinsurance for the WCBOE's healthcare plan. Further research indicates that this is not the case. The Rate Stabilization Fund is, in fact, the BOE's health insurance fund. Fredericksen has repeatedly represented this fund as employee money. In reality it is the taxpayers' money. Yes, WCBOE personnel pay a small part of the "premium". However, since the BOE is self-insured, any surplus left in a reserve account is the BOE's (therefore the taxpayers).
While it would be fiscally imprudent to strip the fund to a minimum set by the WCBOE's actuaries, this fund is an excellent source of funding MOE while the county faces its current economic woes. Unfortunately for Wicomico taxpayers Fredericksen, his staff, the four employee unions, and the leftward leaning board majority prefer to use this fund as a slush fund to help fund "NECESSITIES" such as boosting the taxpayers' share of retiree healthcare benefits.
Beyond the continued disrespect given to Wicomico taxpayers by schemes such as the $2 million dollar swap described above, one other group of events made yesterday's meeting interesting. The Wicomico County Council somehow morphed into a conservative majority - as if by magic.
While it was to be expected of Councilwoman Gail Bartkovich (R-3) Councilman Joe Holloway (R-5), and Prettyman to be skeptical and pepper the WCBOE's representatives with tough questions, Councilman John Cannon (R-At Large), Councilman Dave MacLeod (D-5) and Councilwoman Sheree Sample-Hughes (D-1) seemed to have magically morphed into conservatives. Only Councilman Bill McCain (D-At Large) held to the "It's for the children" liberal party line.
Holloway lead the charge with:
You've (the WCBOE) done a great job SHIFTING MONEY. What we're looking for is BELT TIGHTENING.
Before the folks from the WCBOE could even mount a decent response, McCain CHARGED to the rescue:
The Board of Education already operates under a tight belt!
What happened next almost caused me to fall out of my chair. MacLeod, probably the most genuinely liberal member of the council, agreed with Holloway rather than coming to his pal McCain's defense:
We need to see an honest effort at saving money. This isn't it.
It has been widely rumored that both McCain and MacLeod would choose NOT to run for re-election in 2010. McCain's utter contempt for the county's taxpayers and property owners has pretty much made him a fish in barrel. MacLeod appears to be keeping his options open. Additionally, I have to give MacLeod credit for genuinely (if misguidedly) believing that government is a force for good while McCain merely panders to select special interests.
It will be several weeks before the BOE makes public the four union contracts for next year. Until then, we won't know the extent of teacher / staff raises over at the BOE. A lot of questions will also have to be asked regarding benefit increases that can be hidden in places such as the Rate Stabilization Fund. Until then we won't have a clue whether or not the WCBOE is willing to tighten its belt, even one notch, or if we'll continue to see the kind of "bait and switch" that was witnessed yesterday.
17 comments:
One bad year for health costs and the rate stabilization fund could be wiped out.
Prime example of the GOOD OLE BOYS ripping off the Tax Payer. False information concerning their budget and expenditures. They are cutting money for students and activities while hiding money for their benefit. Then they cry about benefits under false pretense of lack of money to ripoff the Tax Payer for more money while hiding excess amount of money. This proves derilection / malfeases of office and definite incompetency. This is why the Tax Payer does not approve of unneccessary tax hikes because of this type of Bull. Norman Conway supports this deception because he expanded administrative positions before he retired to cover his a$$ before he retired and to reward his BOYS while in Annapolis. This is another reason for the TAX CAP, our beloved County Executive wants to remove, to remain in effect. Again the truth comes out about the irresponsible Administrationin the WBOE. What is the old saying give them enough rope and they will hang themselves or the truth always comes out in the end or tell enough lies and the truth will show through. Imagine that.
i love this. a leagal way for wicomico county to get state tax dollars!
once again you have made statements without ALL the facts, but you have a habit of doing that all the time.
Two of the County Council members are MARRIED to Board of Ed. employees. Why are they voting?
If McLeod doesn't run in 2010, can we have your Terry Cohen?
County Fan
Whichever fund(s) are robbed to for this local version of the credit default swaps that have wrought havoc on the US economy, this plan is an absolute absurdity and would make mockery of the "maintenance of effort" concept.
You heard it here first:
As soon as Norm Conway is no longer in the House of Delegates, there will be legislation to change the educational funding allotment among the counties so that Wicomico can't get as much of its school budget (2/3rds) from the state while decreasing its property tax rates each year.
We better reelect Conway again the next time around and the time after that, too.
I sure don't like the sound of this use of our tax dollars. If the BOE has a slush fund to play with, why are they attacking the tax payers for more money? Something really smells here, so I agree with G. A.'s analysis of the situation.
Look what Worcester did. They cut the payments to the county employees pension fund to payoff the BOE.
Look out, folks! Massive tax increases ahead.
And, they'll blame it on public pension shortfalls...
I've been watching the BOE shenangins for quite a few years.
It wasn't enough for them to ridicule the Revenue Cap. No they just had to have their legislative lobby in Annapolis sponsor legislation to exempt all schoolteachers from having to pay any real estate tax on their own homes.
http://mlis.state.md.us/2005rs/billfile/hb0965.htm
http://mlis.state.md.us/2006rs/billfile/HB0197.htm
I'm not making this stuff-up. Then the BOE Department of Planning fabricated student population projections to bolster the school construction JMB schools that are currently under construction.
How many times have I caught them in scandal after scandal trying to deceive the average taxpayer.
Then I went to The Daily Times and got nowhere. After further investigative work I found out that Eric Sahler's wife was the spokesperson for the BOE. And then there is another DT editor, Susan Parker, whereby I stumbled onto her name as a former BOE worker. We have Norm Conway who was another paid representative who was drawing yet a BOE salary simultaneous to his tenure as our elected representative.
How many times does the average taxpayer have to screwed in this County.
It's time to take action and get the bums out of there.
Dave MacLeod is genuine. He's a religious guy who does believe government should serve the poor.
But he isn't stupid. This was just too much to be tolerated, even for that very tolerant man.
9:13
You keep bringing up this stupid bill that will never be passed and isn't supported by the teachers. The teachers know that they as the third largest employer in the county pay most of the taxes. To exempt teachers from paying property taxes would be plain stupid. I'm a teacher and would benefit from this crazy bill, yet Icould never support something so stupid. What representaive introduced this bill? I have never heard the union mention this bill or ask us to support it in any way. Anyway, if you are ticked off about the funding to the BOE complain to the state. It is obvious that the county barely contributs to the WBOE, and the state contibutes about 70%.
This will be the last year that Wicomico County gets most of its school funds from the state of Maryland -- the other counties, most of which get a much lower share and don't have a tax cap, will see that things change so that they get more and Wicomico gets less.
9:13
Here is the text of the bill you referenced. I guess you either can't read, or you are a liar. This bill is not to exempt all teachers and isn't only for teachers. I'll let you read if you can.
"Synopsis:
Authorizing the Mayor and City Council of Baltimore City and the governing bodies of counties to grant, by law, a property tax credit against the county property tax imposed on a dwelling owned by first-time home buyers who are firefighters, law enforcement officers, and public school classroom teachers in the county; authorizing the Mayor, City Council, and governing bodies to provide for the amount and duration, eligibility criteria, and compliance measures for the credit and regulations and procedures for credit requests; etc."
It is for first time homebuyers, not "all teachers," you idiot. If teachers, police, and fire buy homes in the area they are likely to stay and become more involved in the community. Also read the last part, it is up to the local government to decide how much of a creedit and for how long. So, a county could say 50% off of your property taxes for two years.
So, this is not "legislation to exempt all schoolteachers from having to pay any real estate tax on their own homes," as you have incorrectly pointed out. Either learn to read, or stop spreading lies.
The first bill wasn't even considered which is as it should be. Those delegates supporting that bill should be dragged into the streets of Annapolis.
Ref: 9:13 Posting
Who posted the schoolteachers - Property Tax exemption bill?
The legislation shows Shiela Hixson - Chairman of the Ways & Means Committee. When you check out her credentials listed on the Maryland Legislature page, it shows she is affiliated with the State Teachers Union among many other educational entities. It looks as though she is one of their lobbyist.
Anon 1508 -
What other facts? I sincerely hope that you aren't a teacher. If you are, and this is a demonstration of your critical thinking skills, we have yet one more example of why teacher tenure hurts our children.
I you disagree with what I have to say, please provide a little evidence to back up your claim.
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