Upper Marlboro, MD: Today, Prince George’s County Executive Rushern L. Baker, III released this statement following the announcement that Governor Larry Hogan proposes to cut $3.5 million from Prince George’s County’s disparity grant funding.

According to the Maryland Association of Counties (MACo), Governor Hogan will be proposing to cut $83.3 million from the FY 2017 state budget at the next Board of Public Works (BPW) meeting on November 2, 2016, according to the notice posted today on the Department of Budget and Management’s website. The cuts include $3.9 million for local government disparity grants. Local jurisdictions that experienced an increase in Fiscal 2017 would have that increase reduced by 50 percent.
The $3.9 million reduction in disparity grants would affect four counties, with the lion’s share (roughly $3.5 million) in Prince George’s County (90% of the total cuts statewide). The remainder is split among Wicomico ($280,000), Washington County ($91,000), and Cecil ($8,000). The following MACo figures are drawn from the brief description in the BPW agenda item, and the DLS Budget Analysis for the FY 2017 disparity grant. Disparity grants were first instituted in 1992 (and altered numerous times since) to assist jurisdictions that generate substantially less from local income taxes than the state average. It was established in conjunction with a variety of state aid cutbacks affecting counties, offset at the time with increased county income tax authority.

STATEMENT FROM COUNTY EXECUTIVE BAKER ON CUTS TO PRINCE GEORGE’S COUNTY:

“We are disappointed in the proposed budget reductions by Governor Hogan in the disparity grant and other programs – local management boards and community legacy programs - that benefit the residents of Prince George’s County. The proposed disparity grant reduction will cost the County approximately $3.5 million in FY 2017. This program is established to assist jurisdictions whose income tax collections trail the remainder of the State, and thus need additional State assistance to fund essential services. By making reductions in this grant, the Governor is clearly indicating that he does not want the State to assist residents in our community.”

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