St. Mary's commissioners keep nonprofit funding level, approve CIP unchanged and reject constant-yield tax move

St. Mary's County Commissioners on March 18 voted to keep county-funded nonprofit grants at last year’s levels while making participation in the College of Southern Maryland’s nonprofit institute a condition of receiving mini-grants. The board also approved the recommended Capital Improvement Program with no changes and defeated a motion to set the property tax rate at a constant-yield level.

The nonprofit motion carried after a roll call-style outcome was announced as a 3-2 result: the board’s tally was recorded as three in favor and two opposed. The motion’s text, introduced and moved during the work session, read in part, “I’d like to make a motion that we keep the nonprofits that have been categorized to the book funded at the same level they were funded at in 2013.” Commissioners then asked that recipients of the mini-grant funding “shall utilize the nonprofit institute” at the College of Southern Maryland as a condition of funding, the board recorded.

The vote on the Capital Improvement Program (CIP) came after discussion of a $7 million discrepancy in the draft and questions about ownership of a property tied to the planned jail project. A motion to make no changes to the CIP “as it currently exists” passed by the same 3-2 margin after members debated timing and contingencies tied to state involvement and property transfer. One commissioner said the board should “make the plan contingent on ownership of the property” before proceeding with a jail project.

Separately, a motion to adopt a constant-yield real property tax rate was moved and seconded but failed on a 3-2 vote. County staff had estimated the fiscal impact of holding a constant-yield rate at about $527,000 in reduced revenue in the draft budget; during discussion several commissioners said they preferred to wait for more information on sequestration, furloughs and other state-level tax changes before locking in the tax-rate decision.

The meeting produced additional budget directions that staff will use in the next work session and in preparing the recommended budget for public hearing. The commissioners asked staff to:

- Keep nonprofit operating levels at 2013 funding amounts and condition mini-grant awards on nonprofits’ participation in the College of Southern Maryland nonprofit institute. - Maintain the CIP as recommended by the Planning Commission unless offsets are identified, with any significant changes likely requiring bond funds. - Not adopt the constant-yield real property tax rate at this time; staff was instructed to return with more information at the next session.

Quotes and attribution

Commissioner Cynthia L. Jones moved the nonprofit motion: “I’d like to make a motion that we keep the nonprofits that have been categorized to the book funded at the same level they were funded at in 2013.”

Commissioner Todd B. Morgan cited budget uncertainties tied to federal actions when opposing the constant-yield move: “I’m concerned right now with keeping and decreasing, $527,000 out of our budget based upon, you know, a $215,000,000 budget only because the long the prognosis I’m looking at now is the sequestration. The furloughs, I believe, are about 90% sure to happen over the next month or 2.”

Context and what happens next

County staff (CFO Elaine Kramer and deputy CFO Cudmore) said the draft budget as of March 14 included total revenues and expenditures that produced a variance of roughly $3.1 million and circulated supporting schedules. Commissioners instructed staff to incorporate the board’s decisions and return with a recommended budget for approval to go to public hearing; the next formal budget action is scheduled in late March so staff asked the board to confirm directives within 24–48 hours to meet the public-notice calendar.

Ending

Staff said they will return with updated numbers at the next work session to reflect the board’s direction on nonprofits, the CIP and tax-rate options and to incorporate other operational guidance given during the session.