(April 21, 2016) While by no means filling up the room, the Ocean Pines residents who did attend a town hall meeting on April 14 departed with a wealth of knowledge regarding Worcester County government’s budgetary challenges for FY 2017.
The modest crowd of less than two-dozen at the Ocean Pines library saw a detailed Power Point presentation from County Chief Administrative Officer Harold Higgins. The data driven slide show laid out hard numbers for property and income tax rates, general fund revenues and assessable tax base levels.
“Our tax base has decreased by $5 billion yet the state asks for $761,000 more (in school funding),” he said. “Their answer is to raise property taxes and income taxes.”
In FY 2009 Worcester County’s state-calculated assessable tax base was $20.2 billion, a figure that has dwindled to $15.2 billion for FY 2017. Even that, however, is an improvement over the $14.9 million assessment for the two previous fiscal years. County property values took the hardest hit in FY 2013, when they dropped to $15.8 billion from a prior year figure of $17.5 billion.
The meeting was organized and presided over by County Commissioners Chip Bertino and Commissioner President Jim Bunting, both of whom represent Ocean Pines. In his closing comments, Bertino referenced inequitable math to counter the state’s financial logic as regards the schools funding formula, which mandates a specific level financial support from the county.
“We have two less students next year, but we have to pay $761,000,” he said. “Its not fair. We spend the most statewide by student.”
Seemingly representing consensus on the contention, Bertino explained the commissioners are writing a letter highlighting their issues with state financial formulas.
“We’ll be working over the summer to see if we can get something done in that regard,” he said.
Other challenging FY 17 budget figures Higgins’ presentation focused on was an approximately $6.5 million shortfall between estimated revenues, at approximately $187.4 million, and requested expenditures, approximately $193.9 million.
Bunting said the commissioners are working to identify spending reductions or locate additional revenue to balance the budget.
“It’s a moving target and we’ve already started trying to close that gap,” he said.
Possible budget cuts may be limited, as numerous Worcester residents are financially challenged and likely rely on municipal services for survival. For example, Bertino said 43.4 percent of county students currently qualify for free or reduced school lunches.
“In the southern part of the county it’s extraordinary the number of families that live below the poverty line,” he said.
Although Worcester registered the lowest income tax rate and second lowest property tax rate among Eastern Shore counties in 2016, Bertino was dismissive of creating additional revenue through either stream.
“We’re not going to have a tax increase this year,” he said. “Last year, we were looking at a tremendous chasm and we worked darn hard to close that gap.”
Difficult decisions regarding personnel and infrastructure were recalled by Bertino.
“For the fourth straight year, we weren’t able to give county employees a raise,” he said. “They understood and continued to do their jobs the best they could. We have a number of roads in the county that have not been repaved for a number of years.”
Higgins’ presentation showed that the $6.5 million shortfall between revenues and expenditures could be funded by increasing property taxes by three and a half cents. Worcester’s present rate of .835 per $100 of assessed value is just below Queen Anne’s .847 figure, and significantly higher than Talbot’s .536 bottom tier rate. If Worcester’s rates were increased to .87, it would still rank below the .952 tax rate in Wicomico.
The county will hold a FY 17 operating budget public hearing at Snow Hill High School on Tuesday, May 3 at 7 p.m. The commissioners have budget work sessions scheduled on May 10, May 18 and May 24. FY 17 budget and tax rate adoption takes place on June 7.
The modest crowd of less than two-dozen at the Ocean Pines library saw a detailed Power Point presentation from County Chief Administrative Officer Harold Higgins. The data driven slide show laid out hard numbers for property and income tax rates, general fund revenues and assessable tax base levels.
“Our tax base has decreased by $5 billion yet the state asks for $761,000 more (in school funding),” he said. “Their answer is to raise property taxes and income taxes.”
In FY 2009 Worcester County’s state-calculated assessable tax base was $20.2 billion, a figure that has dwindled to $15.2 billion for FY 2017. Even that, however, is an improvement over the $14.9 million assessment for the two previous fiscal years. County property values took the hardest hit in FY 2013, when they dropped to $15.8 billion from a prior year figure of $17.5 billion.
The meeting was organized and presided over by County Commissioners Chip Bertino and Commissioner President Jim Bunting, both of whom represent Ocean Pines. In his closing comments, Bertino referenced inequitable math to counter the state’s financial logic as regards the schools funding formula, which mandates a specific level financial support from the county.
“We have two less students next year, but we have to pay $761,000,” he said. “Its not fair. We spend the most statewide by student.”
Seemingly representing consensus on the contention, Bertino explained the commissioners are writing a letter highlighting their issues with state financial formulas.
“We’ll be working over the summer to see if we can get something done in that regard,” he said.
Other challenging FY 17 budget figures Higgins’ presentation focused on was an approximately $6.5 million shortfall between estimated revenues, at approximately $187.4 million, and requested expenditures, approximately $193.9 million.
Bunting said the commissioners are working to identify spending reductions or locate additional revenue to balance the budget.
“It’s a moving target and we’ve already started trying to close that gap,” he said.
Possible budget cuts may be limited, as numerous Worcester residents are financially challenged and likely rely on municipal services for survival. For example, Bertino said 43.4 percent of county students currently qualify for free or reduced school lunches.
“In the southern part of the county it’s extraordinary the number of families that live below the poverty line,” he said.
Although Worcester registered the lowest income tax rate and second lowest property tax rate among Eastern Shore counties in 2016, Bertino was dismissive of creating additional revenue through either stream.
“We’re not going to have a tax increase this year,” he said. “Last year, we were looking at a tremendous chasm and we worked darn hard to close that gap.”
Difficult decisions regarding personnel and infrastructure were recalled by Bertino.
“For the fourth straight year, we weren’t able to give county employees a raise,” he said. “They understood and continued to do their jobs the best they could. We have a number of roads in the county that have not been repaved for a number of years.”
Higgins’ presentation showed that the $6.5 million shortfall between revenues and expenditures could be funded by increasing property taxes by three and a half cents. Worcester’s present rate of .835 per $100 of assessed value is just below Queen Anne’s .847 figure, and significantly higher than Talbot’s .536 bottom tier rate. If Worcester’s rates were increased to .87, it would still rank below the .952 tax rate in Wicomico.
The county will hold a FY 17 operating budget public hearing at Snow Hill High School on Tuesday, May 3 at 7 p.m. The commissioners have budget work sessions scheduled on May 10, May 18 and May 24. FY 17 budget and tax rate adoption takes place on June 7.