Leggett Recommends Public Debt for Private Capital Projects

County Executive Ike Leggett is recommending that the County Council use money from current revenue and General Obligation bonds to fund a group of private capital projects. This came at the same time that he has endorsed a proposal by Council Member Roger Berliner to restructure the government to prevent future deficits.

Two staff memos to the County Council’s Health and Human Services Committee list a set of private projects for which the Executive would like to spend public money. They are:

CHI Centers Facility Renovation in MacDonald Knolls, Silver Spring
Publicly-owned former school, privately leased
Supplies multiple programs for children and developmentally disabled
Total Project Cost: $1.5-2.5 million
County Funding Request: $200,000 from bonds

Girl Scouts Camp Brighton Woods Facility Renovation, Ashton
Privately-owned
Used as camp
Total Project Cost: $1.5 million
County Funding Request: $100,000 from current revenue

Ivymount School Renovation/Expansion, Rockville
Publicly-owned former school, leased by private school
Non-profit special education school
Total Project Cost: $1.2 million
County Funding Request: $100,000 from bonds

Jewish Foundation for Group Homes Repairs/Renovations/Equipment Purchases
Privately-owned
Transition program for individuals with developmental disabilities
Total Project Cost: $200,000
County Funding Request: $50,000 from current revenue

Olney Theatre Grant
Privately-owned
County Funding Request: $500,000 from bonds

Unspecified Arts Facility Financing
Owners Unknown
Facilities Unknown
County Funding Request: $400,000 from bonds

Six Project Total
Four projects privately-owned, two projects privately leased
Bond Funding Requested: $1.2 million
Current Revenue Requested: $150,000

These may be worthy projects on their merits, but we are living in unusual times. Here are a few points we submit for consideration by the County Council in deciding on this request.

1. The county is running a deficit that is approaching a BILLION DOLLARS next year. The Executive is proposing eliminating hundreds of positions and furloughs. At least a half-dozen departments will be taking cuts exceeding twenty percent each. The school system will be increasing average class size by one student. And yet we have money to fund private projects? Isn’t the $4 million subsidy for Costco enough?

2. The bond rating agencies are watching MoCo like circling vultures, a fact known very well by the Executive branch. What will they think of the county taking on debt to pay for private projects? In the case of the Olney Theatre, the council staff memo does not even mention a specific capital project to be financed by the bond money. The issue was discussed in closed session and the theatre’s managing director says only that the money will be used “to help us meet our obligations with EagleBank.” County governments do not issue bonds to finance their own operating expenses. Will MoCo be issuing bonds to finance a private organization’s operating expenses? If these outlays are so important, why not finance them with current revenue and cut something else to pay for them?

3. The council staff believes that use of county bonds to pay for private capital projects may be illegal. They point out that Section 21-14 of the County Code only allows General Obligation bonds to be used to build public school buildings, transportation projects, county government buildings, transit projects, public or low-income housing projects and water and sewage facilities. The County Council would actually have to change the law to allow the county to borrow to fund private projects (as the state does through bond bills).

4. The last “project” is the worst of all of them since it proposes that the county issue $400,000 in bonds to pay for “unspecified arts facility financing.” Who gets to specify who gets the money? Would the Executive get sole discretion over it?

We are told over and over again that the budget situation is dire. Services are in danger, big cuts are coming and the county will be devastated. And yet, we see millions thrown at Costco and the “very profitable” Westfield mall (at least according to Steve Silverman), $1.6 million more per year requested for police helicopters (including raises for their pilots), bloated pay for county managers (even if it’s less than MCGEO says) and now slush funds for “unspecified” private projects paid with public money.

Is this a financial crisis or a leadership crisis?

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Non-Profits Gear Up to Fight Safety Net Cuts

The Safety Net Coalition, a grouping of Washington-area non-profits, is holding a community forum on Wednesday night with the three County Council Members on the Health and Human Services Committee to protest impending social services cuts. At-large County Council candidate Becky Wagner is the Executive Director of Interfaith Works, one of the coalition members. Following is their press release.

Update: One of the three Council Members attending the forum is Roger Berliner, who left the HHS Committee last year.

The Safety Net Coalition: One Voice for the Vulnerable

FOR IMMEDIATE RELEASE

CONTACT: Warren Hansen, whansen@iworksmc.org

March 8, 2010

MEDIA ADVISORY

SAFETY NET COALITION TO HOST COMMUNITY FORUM

--Nonprofits to Urge County Officials Not to Cut Critical Social Services--

ROCKVILLE, MD – As County Executive Leggett prepares to unveil his Fiscal Year 2011 budget on March 15, the Safety Net Coalition of Montgomery County will host a Community Forum this Wednesday, March 10, where they will urge elected officials to protect funding for critical health and human services, as demand for assistance continues to rise due to effects of the recession. The Coalition is a broad, grassroots network of more than 65 nonprofits in the county that provide assistance to its most vulnerable residents.

With other local jurisdictions across the Washington-metro region also currently working on their budgets for the upcoming fiscal year, board executives of Montgomery nonprofits, service providers on the frontlines and individuals who have received assistance will provide personal testimony about why funding nonprofits remains critical, even as governments are tightening their belts for another year.

In doing so, nonprofit officials and members of the community will highlight the increasing importance of safety net services as more people are affected by the economic downturn, with job losses impacting families and individuals of all socio-economic levels with little recovery in sight.

For more information about the Safety Net Coalition, including a list of member organizations, visit our Web site at http://safetynetcoalition.org.

WHO: Safety Net Coalition members, Individuals who have received services, Councilmember Roger Berliner, Councilmember George Leventhal, Councilmember Duchy Trachtenberg

WHAT: Community Forum

WHERE: County Council Office Building Hearing Room, 3rd Floor, 100 Maryland Avenue, Rockville, MD

WHEN: Wednesday, March 10, 2010 from 7 to 9 p.m.

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MoCo Non-Profits Protest Safety Net Cuts in D.C.

A coalition of non-profits in Montgomery County has sent a letter to the Mayor and City Council in the District of Columbia protesting budget cuts targeting vulnerable people. This should be no surprise given that need knows no borders. We reprint the letter below.

October 9, 2009

Honorable Adrian Fenty
Executive Office of the Mayor
1350 Pennsylvania Ave., NW, Suite 316
Washington, DC 20004

Honorable Vincent C. Gray
Council Chairman
1350 Pennsylvania Ave, NW
Washington, DC 20004

Dear Mr. Fenty and Mr. Gray:

As partners in service to the vulnerable, the Safety Net Coalition of Montgomery County writes to urge re-consideration of the recent serious cuts to services to the vulnerable in the District of Columbia. As part of the safety net in our community dedicated to serving the most vulnerable of our neighbors, we know there is a long list of needed services that should be funded to alleviate the challenges faced by our low income community. We also know that the District, the metropolitan region and Federal government are facing revenue challenges because of the recession.

The failing economy is being felt at every level in our community. As a neighboring jurisdiction, we are inter-related in community need and ability to respond to that need. Revenues are reduced and needs are growing. Economic pressures and anxieties make every day more difficult and dangerous for those we serve. Our fragile safety net is fraying, and we are asking you for leadership in this difficult time.

We speak as One Voice for the Vulnerable on behalf of those we serve, regardless of the street or zip code. We urge you to:

1. Protect your most vulnerable residents by prioritizing and holding harmless safety net services (such as food, clothing and shelter) as difficult budget decisions are enacted.

2. Make budget reductions in a systemic way. Consider how multiple cuts across Departments affect not only individuals but also the nonprofits, congregations and public sector agencies providing these services.

3. Consider the cumulative effects of “cuts” to the nonprofit community on their ability to leverage District dollars. Even as nonprofits offer millions of private sector and Federal dollars on an ongoing basis to the District – these dollars are shrinking also.

4. Recognize that nonprofits and congregations are prime providers of critical social services in the District of Columbia.

Too many of our neighbors are without adequate services and decent housing and the numbers are increasing. The most vulnerable in our community must not be left to compete with non-critical expenses. We recognize that the budget must address many important safety, health and education issues. However, as a compassionate and responsible community, we urge you to sustain program funding for our most vulnerable.

We appreciate your leadership and support of these important matters.

With best regards,
Rebecca Wagner
Executive Director
Interfaith Works
301-315-1099
rwagner@iworksmc.org

Sharon Friedman
Executive Director
Mental Health Association
(301) 424-0656 – Ext. 510

Sharan London
Executive Director
Montgomery County Coalition for the Homeless
(301) 217-0314

Tim Wiens
Executive Director
Jubilee Association of Maryland, Inc.
(301) 949-8628 - Ext. 105

The Safety Net Coalition: One Voice for the Vulnerable
• A Wider Circle
• Abilities Network
• African Immigrant and Refugee Foundation
• Am Kolel Sanctuary
• Arc of Montgomery County
• Asian Pacific American Legal Resource Center
• Bethesda Cares
• CALMRA
• Caribbean Help Center
• Casa de Maryland
• Catholic Charities of the Archdiocese of Washington
• Center for Adoption Support and Education
• CHI, Inc.
• City of Gaithersburg
• Collaboration Council
• Community Ministries of Rockville
• Community Support Services, Inc.
• Crittenton Services of Greater Washington
• CSAAC
• DELAI
• Dwelling Place
• Gandhi Brigade
• Gaithersburg HELP
• GUIDE, Inc.
• Holy Cross Hospital
• Hughes Neighborhood Housing
• Identity, Inc.
• Impact Silver Spring
• Interfaith Works
• Jewish Community Relations Council
• Jewish Council on Aging
• Jewish Foundation for Group Homes
• Jewish Social Service Agency
• Jubilee Association of Maryland
• Justice and Advocacy Council of Montgomery County, Archdiocese of Washington
• Korean Community Service Center
• Latin American Youth Center/Maryland Multicultural Youth Center
• League of Women Voters, Montgomery County
• Lt. Joseph P. Kennedy Institute of Catholic Charities
• Liberty's Promise
• Manna Food Center
• Maryland Vietnamese Mutual Association
• Mental Health Association of Montgomery County
• Mercy Clinic
• Mobile Medical Care
• Montgomery Alliance
• Montgomery County Coalition for the Homeless
• Montgomery Housing Partnership
• NAMI Montgomery County
• National Center for Children and Families
• Potomac Community Resources
• Premier Homecare
• Primary Care Coalition
• Rainbow Place
• Reginald S. Lourie Center for Infants and Young Children
• Rock Creek Foundation
• SecureCare Services
• SEEC
• Shepherd's Table
• Silver Spring Interfaith Housing Coalition
• St. Luke's House
• Suburban Hospital
• Threshold Services
• Women Who Care Ministries
• YMCA of Metropolitan Washington

cc: Rev. Jim Dickerson, MANNA

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