Craig Maintains Tax Rates in Proposed Harford County Budget

Harford County Executive David Craig proposed a $734 million budget Friday that avoids tax increases, layoffs and any other harsh measures in tough economic times.

The proposed fiscal year 2012 budget is 4 percent more than the current budget, though most departments will not see an increase. It also does not include any layoffs, furloughs, pay increases or cost of living adjustements for county employees.

The proposed operating budget comprises $605 million of the total for the bulk of government services, 4.3 percent more than in 2011.

Craig proposed to maintain the county tax rate (1.042 per $100 of assessed value), which is lower than the constant yield (1.059) for the first time in county history.

“What that means is about $5 million of property taxes that we will not be collecting,” Craig said at a briefing Friday afternoon at county government headquarters. “The average citizen should see some small decline in their property tax bill when they get it in July, but that’s not a guarantee.”

Those savings will likely be offset by a 1.2 percent increase in revenues from income taxes, which are expected to yield $12 million more than the current fiscal year.

The Board of Education is being funded at the maintenance of effort level of $16.6 million, down from last year due to decreased student population. Public schools will also receive $500,000 to open Red Pump Elementary School and $343,082 to fund the Ag Magnet Program at North Harford High School and the International Baccalaureate Program at Edgewood High School.

Health care costs increased by 15 percent per employee, accounting for $1.5 million, while pension costs went up by $3.7 million.

“Mostly because of miscalculations last year the state made and didn’t tell us about until too late,” Craig said of the pensions.

With 53 Fridays in the upcoming fiscal year—something Craig said happens every 12 years—there is also $4.4 million extra built into the budget for paychecks.

Retiree health care costs increased by $1 million while Craig expects the cost of state employees in the department of assessments and taxations to shift to the county, costing $1.3 million.

Debt service is increasing by $5 million, but the county executive said there are “very few” new capital projects.

Public libraries and Harford Community College are not proposed to receive any “new money,” according to Craig. Public libraries are set to receive $757,932, down from $1.3 million. HCC’s $18.8 million is $2.3 more than the current budget.

The County Council will hold budget work sessions with county departments the week of April 11. Council President Billy Boniface said the budget advisory committee is scheduled to present its recommendations at the May 3 legislative session. The council plans to use the May 10, and if necessary, May 17 meetings to amend the budget.

The council can reduce, but not increase, funds for each department. The only exception is the Board of Education’s budget.

“We can increase their budget to what they proposed to the county executive, but we have to make reductions elsewhere in order to do that,” Boniface said.

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“How [departments] spend the money is up to them. We just make the deductions. We can’t add to anybody’s budget, we can only reduce—even our own,” said Boniface, who added that the council cannot dictate which programs are cut or reduced within each department.

The council plans to vote on the budget at the May 17 or May 24 meeting. The county charter requires the council to meet every Tuesday in May, unless deemed unnecessary, for budget purposes.

Public hearings are scheduled for May 4 and 5 at North Harford and Edgewood high schools at 6:30 p.m.

“Things are really bad right now,” Boniface said. “The county executive’s doing a good job right now of finding cuts from a multitude of places.”