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Tuesday, March 20, 2012

COUNTY EXECUTIVE POLLITT REQUESTS .1% INCREASE IN THE INCOME TAX RATE

The increase is a direct response to HB 1412 and SB 848 Maintenance of Effort Legislation

March 20, 2012 – County Executive Rick Pollitt, Director of Administration, Wayne Strausburg, and Director of Finance, Andy Mackel addressed the County Council today requesting an increase of the income tax rate from 3.1% to 3.2%. This increase is a direct result of pending school funding and maintenance of effort (MOE) legislation currently being reviewed in Annapolis.

The bills – HB 1412 and SB 848 – are of major concern to Wicomico County because it creates strict and harsh funding requirements that cannot be met without dramatic tax increases and/or severe cuts in core services. The legislation alters the reset of MOE retroactively and subjects the County to an increase in the MOE level for FY2013 in excess of $14.2 million above the current base (not including an additional $200,000 already required for FY2013). It also allows the state to intercept income tax revenue from counties that fail to make MOE and sends those funds directly to the state Board of Education. These punitive penalties would be unsustainable for the county.

"Wicomico County is being taken to task by the State for what is perceived as a failure to adequately support education funding,” said County Executive Pollitt, “While I do not quarrel with the basic concern, the impact of the proposed 'cure' far exceeds the nature of the disease. However, if we do not increase the income tax rate, the millions of dollars the State will confiscate could very well put us out of business."

Andy Mackel, in his presentation, outlined the services that would be in jeopardy without the .1% increase in the income tax rate. In order to reach $14.4 million, 100% of the budget for Corrections, States Attorney and the Circuit Court would need to be eliminated; or 79% of the budgets for both the Sheriff and Department of Corrections.

According to Mackel, no other combination of cuts in other county functions would come remotely close to equaling the amount.

Another provision in the bill that has already passed in the Senate, SB 848, allows counties that missed MOE in FY2012 and have a local income tax rate of 3.2%, to rebase at the 2012 level in FY2013 only. Wicomico County’s current income tax rate is 3.1%.

In order to allow Wicomico to retain the current FY2012 MOE base of $36.2 million and avoid the additional and recurring expense of $14.2 million, County Executive Pollitt has requested immediate action from the Council.

A decision is expected this week on HB 1412. Both bills were introduced as ‘emergency’ legislation. Therefore, they will take effect when enacted. Councilwoman Gail Bartkovich repeated Pollitt’s sentiment that the legislation was paramount to “blackmail.” The County Council, voted unanimously to accept Bill No. 2012-02, regarding an income tax increase, for first reading. Aware of the severity of the proposed legislation, the Council will vote on the County Executive’s proposal at their April 17th meeting. Again, this increase, as outlined in SB 848, is expected to help the County avoid an annual $14.2 million expense.

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19 comments:

Anonymous said...

You better get rid of NORMAN CONWAY><

Anonymous said...

SECEDE!!!!! ...or file bankruptcy....fire pollitt and his political machine....we MUST act NOW!!!!!!!

Anonymous said...

Norman Conway has to go. And the Thornton plan needs to be sued in either Federal or State Court to overturn this draconian piece of legislation.

Either way - the County is going to end up in a suit anyway. Best off to rid ourselves of both of these discriminatory pieces of legislation.

Anonymous said...

And while the county is sueing they might as well sue for our gas tax dollars that the state raided from us for our roads. Wonder if any other counties want to join the band wagon?

Anonymous said...

No. No. NO. No. No.

Anonymous said...

You can thank the idiots of VOICE for this happening. If we would have maintained a steady tax increase over the last 10 years, we would not be in the position to be 14.4 million in the hole.

I applaud MD for looking out for our children. If you don't like it, see ya! Our children and schools are our future and we need to support them.

JoeAlbero said...

anonymous 8:49, you're an Idiot. Nothing else has to be said.

Anonymous said...

Go suck your thumb and cry about it folks. I hope this happens and you all can sit around and complain. If we would have done our part and funded our services like 8:49 implies, we wouldn't be in this position. I am more than willing to pay for our kids future.

Anonymous said...

Maybe it's time for the BOE to have to hold bake sales, Bingos, Etc to raise their funds. The taxpayers have had enough. 50% of the County budget goes to the BOE.

Anonymous said...

With the crime rate being as high as it is, (#22 in the contry for being the most dangerous place) who's going to watch the criminals if the department of coorections budget is cut by 100%. And, if I were a sheriff deputy, I would be spending more time at a coffee/doughnut shop than on the beat fighting crime if the budget is cut by 79%. Salisbury/Wicomico County will soon look like OK Corral. Poll, you are absolutely crazy. The county executive position should be part of the budget cut. You absolutely hate the citizens and employees of wicomico county.

Anonymous said...

Joe:

Don't let Pollitt and Strausberg scam you and us -- that would be a 3.1% -- not a .1% -- tax increase. That's 30 times more than what they are saying it is!!!

Anonymous said...

9:01 Very mature!

Anonymous said...

Want to save money Wico. county...cut the sheriffs office to a level similar to Delaware. You don't see Sussex county sheriffs enforcing laws, thats what DSP does. Just sayin'...

Wayne strausburg said...

Yes. 7:17 we are trying to "scam " you by raising the local tax rate 1/10 of a percent to avoid a state mandated $ 14 million imposition. Good analysis

Anonymous said...

Thanks Wayne for clearing that up for 10:17pm. You know, you will always get one like them in the bunch who can't comprehend the entire situation.

And, 8:49p & 9:07p you both don't get it either.

Anonymous said...

Only a liberal believes in giving elected officials a blank check to do with what they want.

Anonymous said...

Delaware's state police play a larger role policing in that state. Sheriff's departments deliver court papers and follow up warrants, foreclosures, evictions etc.

Most drug investigations in Delaware are run by the state police. The same as Maryland's state police taking over most homicides here.

I have to agree, getting rid of the executive branch of the county and it's layer of overbloated bureaucracy is a good start to a balanced budget.

I'm ready to vote to eliminate the whole executive branch of the county. It was a big mistake, it may have sounded good at the time, now we know better.

Anonymous said...

Quote from the rag:

"Now, under House Bill 1412 and Senate Bill 848, MOE level spending would be retroactively set to fiscal 2012 levels -- requiring about $50.4 million instead of the anticipated $36.4 million required this year"

So the State is MAKING us spend an extra $14 million even though we seemed to get through this year just fine (minus the Bennett Middle Palace)?? Seems to me that the State lacks fiscal responsibility and is hell bent on over spending and over funding. Why can the MOE requirements be amended to get us through times like this? Screw the waivers, just fund what is necessary to provide a decent level of education and forget about all the extravagances!

Anonymous said...

They need to learn how to properly budget and spend the money they already have FIRST!
No more taxes!