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Prince George's County consultants flag state budget changes that could shift costs to counties
Summary
County consultants told the General Assembly Committee that ongoing negotiations on Maryland—s state budget and the "Blueprint for Maryland—s Future" could increase county costs for pensions, school programs and corrections, and that final impacts likely won—t be known until close to sine die.
Prince George's County consultants told the county—s General Assembly Committee on March (transcript) that negotiations on Maryland—s budget framework and the implementation of the Blueprint for Maryland—s Future remain fluid and could increase costs for counties.
The county—s representatives summarized that the House and Senate had agreed to a broad framework but still differed on several items, and that the final budget likely would not be clear until close to sine die. "We probably won't get the final budget until close to sine die," said one consultant, adding that the House had restored some Blueprint cuts the Senate proposed to delay.
Why it matters: the committee heard that several changes under discussion would shift costs to counties, including changes to pension funding shares, higher county shares for State Department of Assessment and Taxation (SDAT) funding, and potential phase-outs of teacher retirement supplemental grants. The consultants said counties might be given the option to raise the local income tax rate from 3.2% to 3.3%, and that other revenue proposals under consideration could affect state and local revenue streams.
Committee members and consultants listed revenue-raising proposals under debate in Annapolis, as presented to the committee: a proposed 3% tax on data and IT services, a 2% capital gains tax on gains above $250,000, higher rates for very high earners (6.25% and 6.5% tiers mentioned in the presentation), increases to sports wagering and short-term car-rental taxes, higher vehicle excise and titling fees, and other adjustments. Consultants emphasized those figures were part of a moving negotiation and might change: "There's still $1,000,000,000 in revenue additions, $2,500,000,000 in budget cuts, that we still have to monitor," one said.
Discussion points raised by committee members included whether debates would occur publicly or in conference committees, and whether the county should seek more in-person access to state delegation meetings. County staff said they had been meeting with members of the Prince George's County delegation and would continue outreach.
What was not decided: consultants repeatedly warned that the precise fiscal impact on Prince George's County would not be known until a final budget is enacted. They said some items (for example, a proposed shift to a 90/10 county/state share for certain costs) could materially change county obligations, but they did not report any enacted changes at the time of the briefing.
The committee requested continued briefings and written materials on budget developments as negotiations proceed.
Ending: County staff and consultants said they will continue monitoring the negotiations in Annapolis and provide updates to the committee as the House and Senate reconcile differences ahead of sine die.
