Monday, April 23, 2007

Breaking Up is Hard to Do

Budget crises are breaking up the election coalition which largely triumphed in this year's Democratic primary. Both the state and the county are facing looming budget shortfalls. At the state level, Gov. O'Malley and the Democratic majority in the General Assembly decided to postpone the day of reckoning.

The governor may call a special session to deal with the state's budget problems. He clearly loathes the idea of increasing taxes so slot machines are back on the agenda. Unlike former Gov. Ehrlich, he appears more than willing to work the General Assembly in order to make slots into law.

In Montgomery County, the County Council surprises. County Executive Ike Leggett has proposed cutting the the $1.99 billion budget proposed by the School Board by $19.7 million. Councilmembers faced the unenviable choice of supporting newly elected County Executive Ike Leggett or MCEA. MCEA even held a rally with support from members of the School Board as well as the Superintendent.

However, the Council chose neither option. Instead, alarmed by budget projections, the Council cut the school budget by a further $1.4 million. Even Councilman Marc Elrich, a former member of MCEA, voted for the cuts. Only Councilwoman Valerie Ervin (D-5), a former member of the school board, voted against the budget cuts.

The budget is no longer so easy to balance for a variety of reasons. Growth, much vilified throughout the campaign, also helps grow the budget. The latest population figures suggest population and economic growth well below the national average. Montgomery County has the highest property transfer taxes in the nation (yes, really) so the end of the property boom also takes a bite out of the County's budget.