DECEMBER 9, 2003
Anne Arundel County Executive Janet S. Owens This year is the year to talk about the future of Anne Arundel County. Is this county going to continue to prosper as it has for five straight years? Is this County going to continue to improve its infrastructure, raise the quality of life indicators, and improve its education system as well as its other fundamental services? Or is this County going to enter a period of retrenchment - or worse? Yesterday, I met with Major Ozzie Osborne, back from Iraq to present an American flag that flew in that country - and today the flag flies in our County. After Christmas, he will return to that very dangerous country to complete his mission. His visit made me think of the powerful influence of the military presence in our County. We have so many of our public servants in that part of the world serving our country - police officers, firefighters, public works employees, and local military personnel. We all hope for their safe return. We also have so many industries here that support the military and our fundamental freedoms. So often, I have talked with great pride about our Gold Coast. The borders are ever-expanding. The principals right now are Ft. Meade, NSA, Northrop Grumman, Computer Sciences Corporation, General Dynamics, and Titan, to name just a few. These public and private enterprises have fueled tremendous economic growth in this County and we will do all that we can to promote further expansion. But this growth depends upon and relies upon our transportation network, our public safety systems, our health delivery systems, our public works systems, and our education system. The integrity of those systems is in danger today. For the last two years, I have pared away at the County budget preserving all that I could for public education. Fiscal prudence is rarely rewarded in the public sector. The massive structural deficits at the State level have resulted in cuts to the local jurisdictions. The State can decide not to raise taxes and cut state aid but that only increases the pressure on the County. The pressure cooker is where we are today. The gap between tax receipts and expenditures now stands at $8 million. The potential additional state cuts for our County total $20 million. All County employees, except teachers and public safety employees, did not get a step raise or a cost of living raise this year. The teachers are fighting for a one percent raise. The seven public safety unions now have binding arbitration for the first time. An arbitrator may decide how much the County must pay them. There are no other places to cut in the County budget without harming programs and people. The irony of this situation is that we live and work in one of the most prosperous Counties in the State and indeed in the Nation. Unemployment is still very low, job growth is improving, property values are soaring, tax levels are the lowest of the region, and the total wealth of our commercial and residential property will one day soon eclipse all of the Counties and the City, save one. Apparently our perceived wealth will cause this County to reap very little under the so-called Thornton formula for aid to education. Our County will only receive 1/6th the support of PG County and 1/3 of the support to Montgomery County and Baltimore City. And yet, this County serves as a temporary home to our armed forces who come from all over the country to serve. Their children, more than 10,000 strong, attend our public schools. The Federal Government reimburses the County a mere fraction of its cost. Ft. Meade also serves as a compassionate leave post and therefore we serve some very severely handicapped children. We welcome the military families as our own and we are proud to educate their children. But this financial burden has to be equitably shared by the Federal and State Governments. The Thornton formula has to be changed so that our commitments to our military, and this County as their home, are shared on a state-wide level. Another irony facing our County is reflected in our changing bond ratings. For four years, we maintained the next to the highest rating. This past year, the rating firms stated their willingness to make this county the first revenue capped County to become AAA rated - and then the State deficit reared its ugly head. This year we kept our Aa1 rating but Moody’s changed the outlook from positive to negative. Moody’s reported the reason for the change as follows: “Unresolved issues related to the State’s estimated $1.2 billion budget deficit lends some uncertainty to the magnitude of expected budget cuts for fiscal 2004, although officials are planning for uncertainties.” This year the State will cut deeper. The County needs more revenues but the property tax revenue cap will keep additional property taxes from rising to meet the needs. The income tax rate has not changed since 1968. The Thornton Formula will not help as it is now written. There are no revenue enhancements or taxes planned. There are no carve-outs from the revenue cap for police and fire. And yet, the unfunded mandates scream out for more money. The all-day kindergarten mandate costs $72 million by itself, according to the Public School System. Who is going to pay for these new services? Who is going to pay to maintain our existing services? Who is going to pay to improve our services? The answer is simple - if we do not pay for the services, then we will not have them as we know them today, let alone what we hoped they would be in the future. What are our choices? Wait for slot revenue? Cut deeper into fundamental government operations until the first responders cannot respond? Tell our educators and our other public servants to do more with less? Devalue our best public servants until they go elsewhere? The County stands alone. The County has to decide its own future. We can decide to do nothing and accept the consequences. Or we can decide that the quality of life we all enjoy here is worth keeping. It is worth keeping because Anne Arundel County is the best County in this State. You cannot stand for the best and say that you want to maintain income taxes at the 1968 level. You cannot stand for the best and say that all revenue from property tax must be capped under a 1992 law. If you stand for the best, and if you stand for growth and further economic expansion, you have to say you are at least willing to pay your fair share. I have made numerous presentations to groups all over the county about the choices for this year’s budget. The numbers are what they are. You understand them. Now here are the choices: - Increase the income tax for the first time in 36 years;
- Impose a tax on cell phones;
- Increase the amusement, parking and hotel taxes;
- Change the Thornton Formula for our military and for our County; and
- Adjust state unfunded mandates to reflect reason and reality.
These five choices spread the burden evenhandedly. They require people to stand up for this County. They require our teachers, first responders, public works employees, our healthcare workers, and everyone who cares in the private sector, to go out and persuade all our citizens - and our elected politicians - that these are not easy choices but they are the only choices if we care about this County. This County is worth fighting for - not just what it is today but what it will be tomorrow. If we do nothing, we will regret it. I ask you to do your part. If you believe in excellence in government services, and if you believe that this County’s quality of life is worth it, then you should join the debate. Anne Arundel County is now a giant and must wake up and act like one | 
