February 19, 2009

Dear District 6 Constituent:


I thought it might be useful if I provided some information which may help you in understanding the County’s current financial situation.  I have never known Prince George’s County to be as challenged financially as we are today, because of the global economic downturn we are currently experiencing.  This budget cycle will be one of the most challenging in the County’s history.

In order to meet the revenue shortages the County Executive has been considering several ideas and proposals in order to balance the budget.  Unlike the Federal government, the County must have a balanced budget by June 1^st.

The County Executive will submit his proposed spending plan to the County Council on March 16^th, as required by the Charter.  A continuing erosion of the national economy and the housing market, and deeper cuts in State aid than anticipated, have combined for local budget deficit projections exceeding $130 million.  Inaction on the County’s part could lead to the need for devastating personnel actions, including public safety layoffs.

In an effort to address this immediate fiscal crisis, the Council recently voted to affirm the County Executive’s proposals which he will take to Annapolis for consideration by State legislators.  However, this vote which expressed only the Council’s position, does not allow for any such implementation.  Neither the County Executive nor the County Council has the authority to raise or implement taxes. Decisions on such matters are carefully considered by state representatives.

I encourage you to contact the Governor, http://www.governor.maryland.gov/mail/ promptly regarding his proposed cuts to the County’s appropriation, and the members of the General Assembly, who must vote on the State budget as well as the proposed legislation to alleviate the budget deficit, http://mlis.state.md.us/mgaweb/mail32.aspx. I also encourage you to go to Annapolis and provide testimony before the appropriate General Assembly committees.

The following information about the real property tax may be helpful to you:

Real property is reassessed on a three-year cycle.  The amount of the tax bill is determined by two factors:

1.      The Assessment.  The annual assessment increases on owner-occupied residential property is based on the fair market value of the property and are issued by the Department of Assessments and Taxation, an agency of State Government.

2.      The Property Tax Rate. Property tax rates are set by each unit of government: the state, counties and cities. The County’s Real Property Tax is 96 cents per $100 assessed property value and is mandated to remain at that amount by passage of the 1978 Tax Reform Initiative by Marylanders -- known as TRIM.  This rate can only be changed by referendum or by enabling legislation from the State.