Funding Decisions for Bennett Middle School
December 21, 2011
Much of our community is engaged in a discussion to replace the Bennett Middle School, a project which would already be under construction, except for a collision with the worst economic recession since the Great Depression., The recession has had a crippling affect on the financial strength of the Wicomico County government. There is great concern that this will continue for some time to come. Adjusting to continuously declining revenues over the past three years, the county has shrunk the size of its workforce and furloughed remaining employees, significantly decreased the level of county services and increased user fees for many of the services remaining. What has been most objectionable to many county residents has been our inability to adequately maintain our roads system, to adequately fund public education, or to fund capital infrastructure, of which 80% is dedicated to school projects.
With the hope of jump starting the project, a community forum was held at BMS on December 13th, at which the Board of Education and its staff, the County Executive and his staff, the County Council and interested citizens gathered to assess the project’s current status and to identify what is needed to put the project back on track. Director of Facilities Planning for the school board, Brian Foret, was the principal speaker.
Mr. Foret gave an informative presentation, clearly laying out that the projected cost of the school is $75.3 million, which through value engineering and cost shifting, will be a savings of $3.8 million from the previous estimate. Of the total project cost, the county will pay $42.8 million and the state will pay $32.5 million. All of the county portion will come from sale of capital improvements bonds.
Subsequent to the December 13th meeting, the Daily Times published an editorial in support of the project; in so doing it erroneously gave readers the impression that the state will pay 96% of the BMS project cost, sdding that it should be an easy decision for the county to pay its small share. Using Mr. Foret’s figures, it is clear that the cost to county taxpayers will be much more than 4%; it will be more than half of the total cost. Whatever percentage it may be, the school will cost Wicomico County $42.8 million.
We agree with the newspaper that building a school is an investment in the future of our community. The County Council still has the concern and it should be everyone’s concern, that if we borrow the money to build BMS, the principal and interest payments won’t add so much to our annual budget to make the county less able to fund the schools operating budget and the budgets of other essential county services. Many county residents argue that these are already unacceptably under funded.
On Tuesday, December 20, 2011 the County Council held a public work session on the BMS project, at which Mr. Foret and Mr. Bruce Ford, Comptroller for the Board; Dr. Frederickson, Superintendent; other Board staff and members of the Board of Education; County Executive, Pollitt and his staff, including Finance Director, Andrew Mackel; met with the County Council. The purpose of that meeting was to determine if, when, and how the county could afford to pay for its share of the project, whether the county would have to borrow all of the money, could the cash flow needs of the project be such that the county could spread the borrowing over several years and will the state money be available when it is needed to meet project cash flow needs.
The County Council asked Mr. Mackel about the county’s current bonded indebtedness and how much will be paid off over the next few years. He said there will soon be relief from bond issues that will be paid off. The Council asked Mr. Mackel about revenue projections and what tax rate he would anticipate the county would need to fund the BMS project. Mr. Mackel responded that he thought the current tax rate would not support funding the BMs project, as well as level funding for other operating expenses, but that the Constant Yield Tax Rate, or the tax rate allowed by the Revenue Cap would both support level funding for current expenses, the BMS project and funding for some other smaller capital projects, or some other budget increases. The Constant Yield Tax Rate and the Revenue Cap Allowed Tax Rate would represent about a 5.4 and 7 cent property tax increase next year respectively.
We asked what other capital projects will be coming in the years when borrowing for BMS would be needed and afterward. Mr. Foret responded that there are school capital needs of an additional $40 million, or so, in the queue for the years after the Bennett Middle School.
On January 25th the Maryland Board of Public Works will decide whether to fund the state’s share of the next round of BMS funding. Approval will depend on whether the county commits to fund the project next year. County Executive, Rick Pollitt committed to ask Dr. David Lever, Director of the IAC which recommends state funding for schools, to intercede on behalf of the county for a grace period before the BPW meeting to allow the county to make a decision.
While all the answers are not in yet, the County Council expects to have answers to the remaining questions for its next meeting on January 3, 2012. The difficult decision for the County Council will be whether to commit to an increase in the property tax rate of 5 to 7 cents now for next year, so the BMS project may proceed, without knowing what else will be required in next year’s operating budget and without knowing whether revenue for next year may decline more than expected. Committing to increase taxes months ahead of the next year’s budget being prepared is without precedent in this county and carries considerable risk.
Wicomico County Council
Joe Holloway
Council President
DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
32 comments:
I can't afford my property tax as it is now. An increase will cripple this counties taxpayers.
I agree 9:43.
What has been done to scale back the extravagances that were included in the plans for the school last year? I don't mean just scaling a few items to give lip service, I mean, scaling back all extravagances that are upgrades and add unecessary and unaffordable costs to a taxpayor base that cannot afford it.
No vision. No imagination. Cheaper is better. Typical Wicomico.
Looks as if ole Ricky boy is going to outslick the county council again.
THIS IS ALMOST A 10% INCREASE IN TAXES UNBELIEVEABLE
The tax RATE has gone down the last three years, and y'all are whining like it's gone up.
Look, if you want to live in a county with dirt roads and schools that are unsafe, move somewhere else.
I'd rather pay for adequate services. You get what you pay for!
Fruitland, have you been out on the roads in the past 3 years? They might as well be dirt. The County is not being managed properly, period.
I know it's important that everyone understand that there are two sides to this issue but what I truly believe is being ignored is the FACT that MOST do NOT want this project to go through at this point and time. Please show me where I'm wrong. You are the minority on this one and that's a fact.
Your sacred revenue cap allows for the increase to fund this. Let is work the way it is designed. Have the guts, council, to do what is right and not worry about the politics of it. Build it now!
That is Rick's ploy all along - in which the JMB middle school project - that should come second is put first - and that Wicomico's budget that should be first - comes second.
It is just like shutting the stable door when the steed is stolen.
In my humble opinion - Rick's budgeting priorities are all discombobulated.
THANK GOD - FOR A COUNTY COUNCIL!
anonymous 10:32 and others,
Why do you comment anonymously? Is there a fear of retaliation on this matter?
I know if I wanted to truly get respect and be heard I'd use my name so people know I'm serious.
Instead, the liberals just want anonymous comments, (probably one person) time and time again in the hopes people would believe there are more people who support this spending.
Stand up for what you believe in by using your name or know that the majority will not respect your comment on this important issue unless there's a name attached.
I am against it because the County cannot afford it at this time, period.
Rick has done a poor job of running this County. He lacks leadership skills and his budgeting priorities are all out of order.
Sometimes I wonder how could a man like this ever get in office.
10:26....it's gone down because property values have decreased. Also less money is coming in because of foreclosures. Besides, all of this is pointless if our taxes were spent properly.
and to think; earlier rick wanted to help the library expand. good grief; when is all this going to stop? freeze everything until we can get the financial house in order. cuts are still in the budget; so get cutting.
what is so hard to understand? there is no money. you can't get blood from a turnip. we are ALL cutting as much as we can to make it through this troubled economy.
1.stop wasting our hard earned tax dollars.
2.cut and freeze where you can.
3.go against the liberal grain and look for ways to make our county "business friendly".
4.support firefighters, police, paramedics, infrastructure maintenance, and defense. the rest will have to be put on hold.
5.BOE; look at your budget and see what else you can do with the dollars you currently get. make it stretch the way everyone else has to do it. be creative. use your collective minds to do this right.
6.cut of rick's money spigot. i don't need to explain this.
this should be a good beginning. now just do it ! and stop whinning.
10:04, since you point out the extravagances of the project, lets hear what they are since you seem to know. I guess we should put up a pole building with concrete floors and sheet metal walls that won't last 10 years. Most of the cost is state mandated environmental and contractual issues. The county needs to decide now in order to keep the state money for the project. The county will never be able to spend over 40 million and not borrow the money, so borrow now while rates are low and construction costs are low. When the economy gets better interest rates will go up and so will construction costs. We can't afford to wait another 5 to 10 years in order to begin construction. This area needs an educated workforce in order to bring good jobs to the area and increase home ownership.
The kids have a place to learn . Now is not the time to build a new country club for the teachers. The county is broke, why is that so hard to understand?
"5.BOE; look at your budget and see what else you can do with the dollars you currently get. make it stretch the way everyone else has to do it. be creative. use your collective minds to do this right."
The BOE budget from the county has been cut in half in the last 5 years. Look it up. They used to get $70 million in local (i.e. County Council) funding, now they get about $35 million. That's a lot of cutting that's already been done.
And Joe, if you had a child or grandchild that attended BMS, you'd think differently. But since it doesn't affect you, who cares, right?
There is little regard at the WCBOE for spending. Just look at the athletic facilities they have at the new Bennett High School. No way does this compare to what Mardela Middle and High School has had to utilize for over 50+ years. Seriously. You folks in Salisbury who send your kids to one of the city schools need to ride out to Mardela and take a look at our track. If Mardela kids can do without for as long as they have, so should everyone else.
While the liberals want to claim we need to build these schools to bring business/jobs to the area, OPEN YOUR EYES AND SEE WHAT THE REST OF THE UNITED STATES ARE READING ABOUT SALISBURY!!!!!
http://www.fark.com/cgi/go.pl?i=6846198&s=1
Just how many different Sites have to publish this information still showing Salisbury as the 4th most dangerous city in America before you Idiots get it.
I would NEVER move my Family into that school system if our lives depended on it.
NOW, the big question is, WOULD YOU?
Fruitland,
I have two younger step sisters who recently attended that school and I can tell you, it's not good, I agree.
However, would I be more open to spending a small fraction of the proposed funding to remodel the current chool, absolutely.
Look at your own household, ALL OF YOU.
Do you completely tear down your old home and build a brand new one, NO, so STOP being Idiots about it. If your home is 30, 40, 50 years old, it is outdated as well, right?????
Come on now, stop all the crap about this project. By the way, my step sisters survived Bennett as well as tens of thousands of other children over the years.
The poor roads is hardly a fault of bad management. It is more the fault of the state and the revenue cap. Just because you want the revenue cap to function the way it was designed does not make you a liberal. I am conservative, howeve, am smart enough to realize that the tax rate cannot only go down, and if you think so you are an idiot. The tax rate has fallen for 10 years and you people still complain. You voted for the cap as it was written, stop your whining if it is administered as voted for.
anonymous 1:33, BS! IF Pollitt had cut back YEARS ago, knowing what was ahead of us, the County would not be in the bad shape it is now in. It IS and WAS poor management.
Someone needs to ask the Board about planned expansion of IT funding. There isn't money for the kids, but there is an unlimited supply for computers, additional tech. personnel, etc. Just ask how many positions have been cut from IT, finance and facilities. Zero. Ask how many have been added. It's happening all the time.
I think the point 1:33 is trying to make is that you worship this revenue cap but complain when Pollitt wants to act within its provisions. It can't be one way. If you want it to limit your revenue, then you must also live with the outcome when it raises income as allowed. What's so hard to understand about that???? Idiot? I think not.
12:47, I totally agree. As a graduate of Mardela who played sports, the facilities are not up to par with the city schools. We have a track program that has won state championships and regional titles and they run on cinder, yet some of the middle schools in Salisbury have had their tracks repaved! We have done without for years and most of our graduates have turned out just fine. So when the board asks for money, lets learn how to distribute the money fairly instead of building Taj Mahal schools such as JMB.
Delmar kids go to school in mobile homes. Let's remodel every school in need instead of building a second palace for those in the JMB district.
4:54 --
The Bennett crowd -- our so-called "elite" families -- get the best schools and share of the education budget. Always been that way and always will
A. Peon
Just build it, you have got to spend our money on something why not a school?
Why not have the BOE take a good hard look at their budget. What items were funded (at one time) as a grant and now melded into the bedget we are paying. Look at the retiree benefits and benefits of the employees. How many companies out there are getting full retiree benefits and a large amount of sick time. How about slimming down the about of substitutes that are needed. Teachers should be in the classroom teaching, not on vacation or paid school functions. Lets get in the REAL world. They get a salary to be teaching. They can take that salary throughout the year and get paid during the summer. Wow what a benefit. I think society really needs to take a look at exactly the benefits these employees are getting. I know there are arguments on the teachers side because there always is, but truly think on why you became a teacher???? Is it for the kids or the benefits? The benefits are going to have to be shrunk sooner or later.
What are the full retiree benefits?? A lot of teachers could retire right now but stay on because they can't afford to pay $1,000 plus a month for health benefits. While working they also pay out for their health benefits, they aren't free. Teachers also pay 7% of their pay towards their pension (required, not an option), plus contribute to a 403B plan for retirement. So, most are paying about 10% of their pay towards retirement. I would say most people in the "REAL" world pay about the same into 401k plans if they are smart. Summer pay is deducted from your pay throughout the year after taxes and held without interest by the BOE until they pay it back to you in the summer. That is the benefit, they hold it for you, which is nice. Please don't think that teachers just get all kinds of free benefits. Teachers earn every penny and benefit they get as educated professionals. As a teacher I love my job, the kids, and I am thankful for my job. However, we are not Monks and Nuns. We need to look out for ourselves and our families while we teach and train the future generations. To answer your question, I teach for the kids and the benefits.
Teachers pay taxes, buy homes, buy cars, and contribute to society. They didn't design the school or create the economy we are in these days. They take whatever is given and teach.
It is amazing to me how many clueless people their are in this county. We need to invest in our future. Our future is the children of this county. Stop looking at what benefits you and only you and what benefits the county and the future. We need this school!!
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