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Posted on: January 22, 2018

Statement and Analysis From County Executive

Governor Hogan’s Proposed FY 2019 State Budget

Upper Marlboro, MD - Prince George’s County Executive Rushern L. Baker, III, released this statement and analysis following the announcement of funding details of Governor Hogan’s Proposed FY 2019 State of Maryland budget and its impacts on Prince George’s County:

“For the fourth year in a row, Governor Hogan’s proposed budget for the State of Maryland adversely impacts the residents of Prince George’s County and throughout the State of Maryland. Governor Hogan wants to prioritize State resources toward paying for President Trump’s and Congressional Republicans’ tax hike and divert needed resources for our most vulnerable populations and issues – our children’s education, our fixed income and senior residents’ health, and individuals and families suffering from addiction, mental health, and developmental disabilities.

Over the last seven years as Prince George’s County Executive, I have fiscally governed under the mantra of “funding our priorities.” We have increased funding every year during my administration toward the Prince George’s County Public Schools (PGCPS) at unprecedented levels. We have invested in public safety which has led to over a 50% reduction in both violent and overall crime for seven consecutive years. We have also invested in improving access to health care that has led to a 50% reduction in the County’s uninsured rate and the building of our new University of Maryland Capital Region Medical Center. And we have invested in ourselves by generating an unprecedented amount of economic development that has created jobs and made Prince George’s County 1st in the state for job growth and 21st amongst large jurisdictions in the nation.

All of these efforts have resulted in our County leading the State in increased property values, job creation, and expansion of our commercial tax base. And instead of continuing to cut services, amenities, and funds greatly needed by Prince George’s County and the rest of the State to move forward and compete, Governor Hogan should take note of our fiscal methods and our success rather than playing from same old conservative playbook of cutting services in exchange for tax cuts to benefit the wealthy.”

ANALYSIS OF GOVERNOR HOGAN’S PROPOSED FY 2019 STATE OF MARYLAND BUDGET IMPACT ON PRINCE GEORGE’S COUNTY:

 

Defers $29 million in capital funding for the University of Maryland Capital Region Medical Center from FY 2019 to FY 2021

  • Since the 2015 Maryland General Assembly, Prince George’s County and the University of Maryland Medical System (UMMS) have advocated for funding certainty from our State partner. Unfortunately, the Hogan Administration has consistently been an uncertain partner over the past 4 years.
  • For the past 2 sessions, the Maryland General Assembly enacted legislation mandating both the State’s operating and capital budget commitments to show that the State is a partner. Chapter 19 of the 2017 Laws of Maryland provided additional capital funding flexibility by lowering the State’s funding in FY 2018 (only $11.3 million), and provided an additional year (FY 2020) to spread out the State’s capital funding.
  • In Governor Hogan’s proposed FY 2019 budget, he defers $29 million in capital funding from FY 2019 to FY 2021. Under State law, the Governor was required to provide $48 million in FY 2019 and $56.2 million in FY 2020. Instead, he provided only $19 million in FY 2019, $56.2 million in FY 2020, and $29 million in FY 2021.
  • In a health care industry with tremendous uncertainty, Prince George’s County residents and the residents of Southern Maryland need all of our State partners to be fully committed to this transformative regional medical center.
  • UMMS and Prince George’s County have shown their commitments by providing funding certainty. Our region needs the same from the Hogan Administration.

Shifts 90% of the Costs of the State Department of Assessments and Taxation to Maryland Counties

  • Shifts approximately $20 million in costs to Maryland counties and Baltimore City for the operations of the State Department of Assessment and Taxation, including the Director’s Office
  • The estimated impact to Prince George’s County will be an additional $3 million in costs in FY 2019.
  • The counties and Baltimore City already pay about $22 million in costs for the State’s assessment operations. Prince George’s County pays approximately $2.8 million to the State.

Level Funds the State’s Grant to Local Health Departments

  • The proposed budget reduces funding to the State’s local health departments by $900,000 by level funding the State grant.
  • The impact to Prince George’s County is approximately $100,000.

Reduces State Funding to the Developmental Disabilities Administration (DDA) Providers by $15 million

  • The proposed budget limits the increase in the State’s contribution to DDA providers to only 1%
  • DDA organizations provide critical care to some of the most vulnerable populations throughout the State
  • These providers need full funding of the DDA program to allow them to provide critical care to our developmentally disabled population
  • Prince George’s County understands the importance of these organizations and will provide approximately $3.5 million in FY 2018 as a stop-gap measure to fill the funding gap by the State
  • The Governor needs to fully fund the DDA providers so that they can retain quality staff to care for this vulnerable population

Reductions in targeted K-12 Education Programs by $17.1 million Across Maryland

  • Reduces the Public School Opportunities Fund program by $5 million - program to expand or create extended day and summer enhancement programs
  • Reduces the Next Generation Scholars Program by $5 million – program that enhances college and career awareness for low-income students
  • Reduces the Teacher Induction and Retention Program by $5.0 million – program that assists first-time teachers induction in the classroom and assists in the retention of teachers across Maryland
  • Reduces the Quality Teacher Stipend Program by $2.1 million – program to attract and retain qualified teachers

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