The following special edition of County Line was distributed by the Office of the Harford County Executive on Monday:
By David R. Craig
Harford County Executive
A recent debate has been sparked over property taxes, government spending and the constant yield. I am writing this article to set the record straight on a few misconceptions about the county budget and property taxes.
It is important to point out that Harford County has not raised the property tax rate in almost 30 years. The tax rate is not going up and the issue of the constant yield is a chimera that the state has created to divert the attention of Maryland residents from the actions of the state. I could have reached the constant yield but the state shifted over $14,000,000 in responsibilities to Harford County so that we cannot reach it–and that is their aim. No county has ever attained the constant yield and none ever will because the state will continue to push costs down to the counties–it is easier for people to be mad at their local government than at the state officials who they rarely see. On top of that the state continues to keep tax money that is paid by Harford County citizens for their local services. In October the County made an announcement that the State was not going to distribute $13,000,000 in local income tax. This year they are going keep over $6,000,000 in Harford County’s share of Highway User Revenue. The State is also shifting the cost of housing state criminals to the County. With these State cuts for this year, it is important not to forget that the General Assembly raised state taxes by $1.4 billion last year – a pretty good game on their part, I think.
I have no control over assessments – that is a state function. County Treasurer John Scotten will provide more detail and define and explain the constant yield issue in another article in this special edition of the County Line.
Last month we all witnessed the frustration of many American taxpayers as they participated in TEA events throughout the country. It is important to note that the genesis of this movement was sparked by Washington’s and Wall Street’s inability to manage its financial matters. At the Local government level, I believe both the services we provide and the financial management we have undertaken shows a stark difference in what has occurred at the federal and state levels of our government.
Since October of 2008 when signs of a falling economy were showing in our local revenue projections, I knew then that action must be taken to reduce the county’s expenses. I have taken significant steps as your County Executive to reduce the overall budget for FY10 by $74 million dollars. Many of the decisions that needed to be made to achieve this reduction were not easy. Here are just a few examples of what has been done.
County Employees have shouldered part of this burden:
– No pay increases for any employees
– No step increases for any employees
– No cost of living adjustment for any employees
– Reduced the county’s contribution to employee health care coverage so that employees pay a higher share of their health care cost
– Altered retiree healthcare program to require more years of service
– Eliminated training programs unless it is required for license or certification renewal
– Eliminated most overtime
– Reduced uniform allowance to employees
– Instituted 5 furlough days (1 week’s loss in pay) for all but public safety employees
Overall Government:
– Eliminated county take home cars for many employees
– Eliminated purchase of new vehicles
– Eliminated purchase of any new computers or computer systems
– Established an expenditure oversight committee to monitor all government expenditures
– Eliminated temporary employees
– Established a hiring freeze and elimination of positions that become vacant
– Eliminated travel outside the state
– Cut Grants to Cultural Arts organizations such as The Aquarium, BSO, Walter’s Art Gallery, Baltimore Museum of Art, and the Science Center. (Grants originally established to allow Harford school students to attend at no charge or reduced rates).
– Moved all new capital projects to out-years unless they are funded by a dedicated revenue stream unrelated to the property tax (such as POS funding).
– Limited after hours use of County Office building
– Reduced cleaning of buildings
– Reduced grass cutting and other outside maintenance.
Every department in the County’s budget is smaller than the present budget – the Office of the County Executive is 16% smaller. I will be taking a pay cut like all other county employees.
Many people have made mention of the funding the Harford County Public Schools receives from the county government. This is an issue of the state mandated “maintenance of effort” for the school system. The County is not allowed by state law to reduce the budget for the Board of Education (51% of the budget). Three Maryland counties asked for waiver from state but they were all turned down by the State Department of Education. I was able to flat-line the HCPS budget, meaning it will be exactly the same amount as the FY09 budget and this has never been done before in Harford County.
In reducing this budget by $74 million dollars, I have also held the line on taxes. In fact, over the last several years, the County Council and I have passed measures to reduce the tax burden on some of Harford’s most vulnerable citizens.
– Expanded the Homeowner Property Tax Credit program to allow for more people to qualify
– Reduced the property tax cap from 10% to 9%
– Expanded property tax credit programs for residents who install renewable energy devices on their property
– Both the County Council and I support reducing the tax cap to 8% for the next year and continue a 1% reduction until it reaches 5%
Another consideration that needed to be made as we were making cuts, was that the county had to be prepared to absorb $14 million dollars in additional costs that were passed down to us by the state. This time the state’s inability to manage its financial house has caused additional responsibilities to be passed on to local government. I fully expect that next year the state will continue in this tradition of passing on expenses to local governments and there continues to be the ever present threat of passing on the cost of funding teachers’ pensions to the counties. This action will have an even larger detrimental impact on our budget in FY2011.
With significant reductions in revenues due to the economy, the assumption of additional costs from the state, and the growing demand to improve infrastructure and meet other public needs, Harford County is faced with some very critical decisions. Many of which, will have lasting impacts far beyond my term in office. Among some of these impacts is the preservation of the county’s AA+ bond rating.
Unlike our Federal or State government counterparts, Local Government is tasked with providing the most basic of services associated with our American quality of life and standard of living. It is important that we all think about the responsibilities we have to ensure that these basic services (Schools, Police, Fire, Ambulance, Water, Waste Water, Trash, Roads, Bridges, Parks, Trails, recreation programs, etc.) continue to be provided.
By John R. Scotten
Harford County Treasurer
The constant yield tax rate is simply a property tax rate that, when applied to new assessments, will result in the taxing authority receiving the same revenues in the coming taxable year that was produced in the prior taxable year.
Each year Maryland State law requires that the County advertise its constant yield rate for the next fiscal year during the budget cycle. Harford County’s fiscal year begins July 1. The law also instructs the county on the format of the advertisement and requires that it be styled in such a manner that the headline clearly states the adoption of the rate as an increase in the property tax rate. However, the County is not raising taxes.
Assessment of real property is a Maryland State function in each county and local jurisdictions and the City of Baltimore cannot reduce the assessment the State sets. Over the years assessments have increased and new construction has occurred but the County tax rate has remained at 1.082. Harford County has not raised the tax rate in over 30 years. The rate is the same as last year and the year before that. The tax rate was reduced in FY2006 – from a rate of 1.092 rate of 1.082.
If Harford County were to change its property tax rate to the constant yield rate revenues would be reduced by over $26 million. The following are just some examples of what an additional $26 million dollar cut would mean to county services. The $26 million dollar cut would need to be absorbed proportionally throughout government.
Public Safety:
Layoff of 18 emergency 911 dispatchers
Layoff of 67 Sheriff Deputies
Reduce the number of paid ambulance crews
Board of Education:
The Board could only receive a $1.5 million cut due to state law requiring maintenance of effort.
Layoff of 25 teachers
Libraries:
Reduce hours of operation and close Libraries for 42 days
Senior Centers:
Centers would need to be closed a minimum of two days each week with meals provided at reduced levels. 11 employees working at these centers would be laid off.
Parks & Recreations:
Deferred field maintenance
Forced closure of Parks & Recreation buildings in the evenings
Non-profit support:
Cut community aid grants to county museums and other non-profits such as Habitat for Humanity, SARC, Boys & Girls Clubs, Emergency Assistance funds, etc.
In addition to these cuts, county government would have to shut down for an additional 27 days. While there are many households in the County that could adjust to reduced local government services, there are many who depend daily on the assistance that is provided to our vulnerable citizens – our friends and neighbors.
Patrick says
This is ridiculous. How do they get away with making this kind of statement? There are many programs to cut before we have to stop feeding the elderly.
Right, we will have to cut all these jobs, and last year’s Parks and Rec budget was $11M. What are we paying for? That doesn’t include new buildings, or new fields. No, that’s operating budget money.
We will have to fire teachers, yet we spent hundreds of thousands of dollars on “economic development” personnel and programs.
Because of borrowing money in the past, last year we had ~$60M in interest payments that we had to pay. How much does that add up to over 10 years?
These numbers come from the budget, found here :
http://www.harfordcountymd.gov/Budget/FY09/Operating.pdf
The time is now to cut back. Let’s not let Harford County turn into a smaller version of California by spending more than we can afford to.
Patrick says
Upon further reflection, this upsets me that the defense to high spending is “these are what you would be giving up.” I thought Craig ran on a small government campaign? Let’s be the first county to make the Constant yield work.
Are you getting nervous, County Officials? Do you respond to challenges from citizens with sensationalist memos?
Everybody should come out to the Harford Property Tax Rally tonight at the County Council office at 5:30. Let the County Council know who the boss is.
pat mcgrady says
The Harford Property Tax Revolt Tea Party is a way for all citizens to voice their concerns about the expenditures w/n the county exec. proposed budget. Mr. Craig states that people will lose their jobs if this budget is not passed. If folks cannot pay their property tax, they lose their homes. Jobs vs. a place to live…tough choice, huh?
The operating budget and the capital budget are both under the control of the county exec. If he chooses to fund pet projects, then those folks are happy right now.
If he chooses to not fund projects, those folks will not be happy right now, but they can wait until the funds are available to fund the projects.
The Bel Air Football parks and rec program sent out an email to its members encouraging them to attend tonight’s council meeting, to show support for the p/r budget to allow them to fund their astro turf fields. It’s hard to justify astro turf vs. “cutting senior center meals” as quoted in Mr. Craig’s letter.
I do not support borrowing more money to add to the future tax burdens. The cycle is never ending.
Parks and rec and the cultural arts projects, the libraries, and the non-profits, all have value and if they are valued by their patrons, users and participants, those folks should participate both tonight and to raise funds for their interests. Get involved or quit complaining.
I do not support this budget and I encourage you all to attend both the rally and the council meeting to share your views on the future of our county.
Take a stand.
Harford Property Tax Revolt TAXED ENOUGH ALREADY Rally
121 S. Bond Street
Bel Air, MD
5:30-7:00 pm
Council meeting 7:00pm
God Bless you all, Pat McGrady
john mallamo says
Which County Executive Craig wrote this?
The County Executive who provided significant raises to County Employees in 2009 without recognizing that he could not fund them in 2010 and had to furlough all but employees with Safety and Education jobs?
The County Executive Craig who now realizes that 2011 will be even worse?
The County Executive Craig who in 2009 converted temporary employees and those paid for from grants that were ending to permanent staus and now states there are no temporary employees?
The County Executive Craig who annouced in his BLOG no new positions and added 29 in the 2010 budget?
The County Executive Craig who announced in his BLOG no new projects and now announces tha he moved all new capital projects to out years with a $17 million dollar park with a $2 million dollar suportin road project? A park that is 5 miles from the newly completed Cedar Lane Park, 1 mile from the not yet completed Prospect Mill Park, and 5 miles from the newly expanded Churchville Recreation Park?
The County Executive Craig who fueled the controversy about which elementary school to build, thus delaying start of construction by now 8 months, then declared that 2 new schools were required, even though one would violate the Harford Count Land Use Plan, and with only one required by the Board of Education?
The County Executive Craig who will send a budget with amendments to the County council for 4 new schools, costing Harford County taxpayers $200 million dollars with no expectation of reimbursement from the State?
The County Executive Craig who will send a budget with amendments to the County Council which includes 2 new elementary schools so that they can decide which one to fund?
The County Executive Craig who in his 2010 budget message attributed the decline in Income Tax Revenue to the slowdown in the overall economy and now blames the state for taking it?
As established by the State, the Constant Yield Rate is designed and calculated by the State, to provide the same revenue to the County as was provided the previous year. The increased revenues resulting from increased property assessed values. This is to reduce the impact on property owners that results from increases in property tax assessments. County Executive Craig is not responsible for the property tas assessments. He is merely taking advantage of the iresultant tax increase by not adhering to the Constant Yield Rate. There is no empiracal evidence to support a claim that the State passess on more cost to Counties that adhere to the Constant Yield Rate. It is hard to imagine that most Counties with lower tax rates and cap than the Harford County Constant Yield Rate and cap would be punished even more severly than Harford County.
As for where cuts will be applies that is a decision for County Executive Craig. Obviously he has chosen those that will inspire the most anxiety in the minds of County residents.
Yes there is a great chimera here, with a comparison to a great children’s literary classic. In the end the man behind the curtain was revealed, but only after he had shredded all his credibility and impugned his integrity which made everybody feel silly for having believed in him in the first place. Quite a comparison.
The County Ex
Bill says
Why is Harford only one of four jurisdictions who consistently takes the constant yield? The County Exec is wrong and misleading when he says no other jurisdictions live on the same amount each year. The County Council forced him to start lowering the cap and he complained about that…now all of the sudeen he is on board….
Bill says
Why is Harford only one of four jurisdictions who consistently takes the constant yield? The County Exec is wrong and misleading when he says no other jurisdictions live on the same amount each year. The County Council forced him to start lowering the cap and he complained about that…now all of the sudeen he is on board….
OH! You’re my new favorite blogger fyi
john mallamo says
Just when it appeared that Harford Coujnty Executve Craig’s fiscal prudence could not get much worse, the AEGIS reports that he is proposing a significant tax break to an out of state corporation.
Other businesses in Harford County are struggling to pay $2.70 per hundred dollars on assessed value, which is adjusted every 3 years. This rate is established in the County charter, and is exactly two and one half time the real property tax rate of $1.08. Adjustments are made every three years on these other properties, and are based on market value, strongly influenced by costs to construct a replacement building.
County Executive Craig is offering a tax rate of just 36 cents per rentable square foot, adjustments every 5 years and use the Consumer Price Index to determine the adjusted tax for OPUS LLC.
Good deal for OPUS LLC, bad deal for Harford County residents. It will remove OPUS properties from the tax base and will cause Harford County residents to pay more to meet County Executive Craig’s budget objectives.
Harford Voter says
Ok…. Mr. Mallamo, I think you have gone a bit far with the OPUS thing. I believe this is part of the PILOT agreement that was agreed to by the Army. Maryland under Ehrlich lured told the Army that Maryland would be great for BRAC, then we got it. O’Malley comes into office and the first thing he tries to do is figure out a way to tax projects on federal installations! This forced the county, state and Army to come together to figure out exactly what that tax should be. Being a civilian DOD worker, I can tell you that the Army was less than thrilled to have to enter these discussions. The thought of taxing projects on federal property is almost unheard of in other parts of the country.
If the county has pursued the full tax, the Army would have been backwards in the lease deal they struck with OPUS. Keep in mind that the deal with OPUS was struck long before O’Malley came along with his tax scheme. In this case, I think the county did the right thing in trying to negotiate a fair tax without killing the golden goose (APG) which lays the golden eggs for this county! BRAC and APG are bringing thousands of jobs to this county in a time where many communities around this country are seeing jobs leave and factories shut their doors. As a county resident, I am more than happy to give up a percentage of taxes for a company and project that will be bringing good jobs to this area. Consider us blessed!
Local Guy says
I don’t like the fact that Craig and his boy Tomarchio keep trying to tell us why we participated in the TEA parties. It wasn’t because of the federal government, it was because of THE GOVERNMENT.
Craig goes on to say that only the local government is providing services directly to the taxpayer but then he starts off his entire piece of rhetoric by bemoaning the loss of State funding.
john mallamo says
Harford Voter,
Sir,
You make some strong arguments in favor of the Tax package being considered for OPUS. I do not agree with you and would offer these counter points.
BRAC was a process intitiated by the Defense Department to reduce infrastructure and subsequently operating costs. Many communities benefited, some suffered. The caluclations used to determine which facilities to close, or move were no doubt made by the very best people within DOD, using a multitude of factors to project costs, benefits and savings. If the ratios did not align favorably for a proposed action, then it is hard to believe that that action would have been pursued. After all of the reviews were completed, the final package was submitted to Congress, where it was passed, and then signed by the President iof the United States nto law. It is difficult to imagine that former Governor Erlich could have lured the very best people in DOD, the full Congress and the President of the United States into closing a base in New Jersey and moving its functions to Harford County. Had he that much power, no doubt he would have lured more voters to cast their ballots for him in his campaign for a second term as governor.
Clearly, Governor O’Malley is a very strong governor. It is no more reasonable to state that he had the unilateral and unprecedented power to tax projects on a federal installation, and thus a federal entity, than it is to suggest that former Governor Erlich seduced the Army, Congress and the President into moving the New Jersey functions to Marlyand. If there were no basis for taxing OPUS the the Federal Government would have said so and that would have been the end of it. That Gvernor O’Malley had the insight, and will, to impose the tax, where no other community has, raises, not reduces, his stature significantly.
The Army is a very old and traditional institution, with many fine accomplishments to its credit. It is very rigid in its approach to nuances. It has sufficient intertia to resist change, that without applying some other significant force to it , it will not move in a new direction. One recent example is environmental protection laws. The Army did not embrace environmental laws, until three of its former employees were convicted, in Federal Court, of vilolating the law. The Army fully embraces environmental law now and in many cases goes well beyond their requiremetns to protect the environment, to every bodies benefit. The deal the Army struck with OPUS is a case in point. If the Army and OPUS negotiated a deal between themselves, without considering what appears to be a legal requirement to pay property taxes, then they failed to uphold either the spirit or letter of the law.
The tax package currently under consideration, may be fair, but on the surface it does not appear so. If the payment proposed represents the present value of property taxes that will be paid out to some point in the future, then there could could be an argument that it is equitable. The adjustment period and index used in the proposal are certainly not equitable to all of the other taxpayers in the County or State. No doubt there would be other businesses who would rush to relocate to Harford County if they got the same deal. In fact, however, the State Comptroller has a difficult time collecting taxes from corporations who operate in Maryland and lease land from other subsidaries of the same company, operting in other states, for no other purpose than to avoid high State and County taxes.
The jobs generated by the BRAC process are illusory and paradoxical. Ceratinly there will be many new jobs, how many is not well known. The paradox of the jobs is that they transform Harford County into a Company Town, without any ability to influence the single employer. That employer is subject to the whims of other institutions as well. Defense budgets rise and fall, and with them, so does employment. When the Defense budget is reduced, many of those jobs will disappear, and Harford County will have no other employment opportunities. A careful look at Detroit, a single employer city and California, which was heavily invested in the Defense budget, should be warning enough of what could happen to Harford County.
If OPUS is subject to County property tax, and it seems they are, then a fair tax should in fact be levied. It should be fair to OPUS, the County and all of the taxpayers in the County. It should be the same tax that all other commercial opeations are subject to. There should not be a special package, just for bringing jobs, that is not available to all other business currently struggling to provide jobs now.
Finally, sir, I would like to thank you and all of your colleagues for all of the work you do to keep this country safe. To you, your colleagues and your famillies, I hope that you will enjoy this Memorial Day safely.
Pat McGrady says
Please think through the impact of this tax credit and follow this thought. If the property that Opus is building on is only to be taxed on the ‘rentable’ areas, the area for the foyer, grounds and parking lots are not taxed. The hallways, atrium et al will not be taxed, reducing the full property tax further. The county will get a “substantial benefit towards ” or help with the MARC train station, …who is going to rent the office space? Opus, LLC is building a major office complex…similar to Battelle…at the HEAT center. Who will be working in these offices? Who will be commuting by MARC to the office building? I am not opposed to working w/ the tax rate for Opus, LLC, , Just make it fair,,, all of us that are already here in the county are not able or willing to be owned and operated by the county, state or federal govt. and we wish to be able to live a productive and creative life, without owing most of our income to continue feeding the dragon our government is becoming.
Hope all of you Dagger readers have a blessed and safe Memorial Day! Pat
Write, call or email county council and the exec before June 3 hearing. Go onto the
Harford Property Tax Revolt.com web site for the email addresses. Thanks, Pat
Informed Voter says
“Cut Grants to Cultural Arts organizations such as The Aquarium, BSO, Walter’s Art Gallery, Baltimore Museum of Art, and the Science Center. (Grants originally established to allow Harford school students to attend at no charge or reduced rates).”
Pardon me, but why is Harford County subsidizing Baltimore City and museums that are largely funded by the State? To save Harford Students $$? How many students did we have attending these museums and how much $$ did we save compared to what they normally would’ve paid through group booking? $ to donuts we saved NOTHING.
The quintessential problem is that the County believes it is their prerogative to continue to INCREASE spending instead of maintain or decreasing it. Harford County does NOT want MORE government, we want LESS GOVERNMENT. Maybe this fact hasn’t dribbled up yet?
Patrick McGrady says
Hurray to Cuts! Hurray for less spending!
In boom times, government has to spend all of the money raised from taxes, because otherwise they have to give it back.
The council votes on the budget tomorrow. Let’s make sure they realize who they work for. Send them a message at
http://www.HarfordPropertyTaxRevolt.com
When the people find that they can vote themselves money, that will herald the end of the republic.
-Ben Franklin
Al J Thong says
Hey John. I’m new to this thread and you have given some great comments and incites. But is the OPUS project you are referring to called the Gate (Government and Technology Enterprises)? If it is, its behind the fence on APG and federal property and basically exempt from local taxes. That project was part of a program developed by the army called EUL (Enhanced Use lease) and basically addressses a cash poor, land rich military with land to lease. The payment for these leases is generally in kind services to the post where the lease was written. This was thought to be a partial answer to the deteriorating infrastucture strapped with near zero cash for repairs.
Also, nothing in its development is similiar to Battelle or in competition with its space. Its more difficult to lease space where everyone right down to the janitor has to have a clearance and and the daily commute is subject to the threat level delays at the front gate.
john mallamo says
Mr. Thong,
It is my understanding that it is a GATE project, located on a Federal Installation. It is also my understanding that Maryland’s Attorney General determined that this type of enterprise is subject to local taxes.
If in fact that this project is subject to local taxes, than there should be no special deal.
Al J Thong says
John,
Except that the OPUS Gilbain deal was actually cut over 6 years ago before the AG’s ruling. It was a deal before BRAC. After BRAC when the developers were trying to escape local taxes by locating on federal reservations, the AG got involved.
Before the BRAC municipalities wanted the economic impact of the added jobs to their area and never challenged the exempt status. In fact they used that exempt status to attract developers to their economically troubled areas like Aberdeen.
john mallamo says
Sir,
All that may be true.
Regardless of when deals were strcuk , it appears that all parties have agreed that local taxes are in fact a requirement. This agreement then allows for OPUS to pay a reduced rate to Harford County in lieu of the $2.70 per 100 dollars of assessed value on commercial property. OPUS pays 36 cents per rentable square foot, adjusted to the CPI every 5 years, with predetermined one time payments associated with square footage. OPUS also agrees to build and operate a MARC station in Aberdeen and Edgewood, build a third gate on APG, and maybe build an alternate road to the Waste to Energy plant on Edgewood, and construct some roads if a traffic study determines there is a requirement. It could be argued that this is a good deal, except that Harford County does not have a responsibility for any of these projects. The principal beneficiaries are the State and the Army, who get a significant subsidy for projects they are responsible for.
Question gets down to why the County is subsidizing the State, which has already passed on more of its cost back to all counties in Maryland. One very painful example is the Bel Air High School building project. Historically the State reimburses the County for about 50% of the cost of building a school. Bel Air High School cost about $90 milliion dollars to build. The state contributed only $14 million dollars. Not close to 50%. With at least 3, and maybe 4, new schools in the Harford County budget for 2010, costing about $200 million dollars, and with no expectation that the state will contribute its usual 50%, it is difficult to justify the subsidy.
Like logic applies to APG. Congress allocated a substantial amount of money to the ARMY for BRAC. APG got some of that money. Harford County did not get any money from the Federal government, that I am aware of, yet spent quite a bit of money collected by taxing residents to prepare for BRAC.
When the County is furloughing employees, and raising taxes on real, commercial and personal property in order to meet budget objectives, it does not seem quite equitable to consider a package such as this.
Feeless Groper says
Sir I love your logic. No deal in the history of deal making looks the same an instant after it is struck. If you invite the developer to the dance using federal reservation tax exempt status as the incentive, how could you change the contract after building had begun just because you couldn’t keep your financial house in order?
As for your like logic applies to APG; In the begining of the BRAC process every county and every municipality submitted their own BRAC plan to the Governor. The Governor appointed the county exec of Baltimore and the mayor of Aberdeen to consolidate all those plans into one state BRAC plan. Since that plan was finished and became the Maryland plan the knuckleheads in Aberdeen never followed through or maybe never even read the plan.
Creating public/private partnerships like the OPUS EUL is the best answer to a troubled local economy. Partner up for all your too large public works projects like water and roads with companies like OPUS and COPT and while you are reaping the benefit of those partnerships don’t second guess the deal and never begrudge you partner his proffit regardless how large it comes out to be.
Patrick McGrady says
Mr./Mrs. Groper (?),
While I believe that I understand where you are coming from with taking care of businesses that want to bring jobs, but I don’t think it is a good idea to never second guess a deal, especially when only recently I heard about it.
Under no circumstances will I blame a private corporation for earning a profit, but I believe John and I are both upset at local government for allowing the deal to go through as planned.
Just like the Aberdeen Stadium deal, this looks to be one that may benefit a few local business people at the expense of the taxpayers.
john mallamo says
Sir,
I appreciate your perspective on the subject.
At the risk of being redundant, a very quick read of the resolution indicates that all parties agree that property taxes are required. This appears to be a fact in this case, and 2 of the 3 parties failed to recognize that then they seem to have neglected their duties. If on the other hand property taxes are not required, then they should not be expected or collected in any form. It is hard to believe that OPUS would stick around if they did not see a legal requirement to pay property taxes, they do not advertise their services as a charitable contribution to struggling communities.
As for the fiscal performance of the State and other local entites involved, I could not agree more. It is still hard to understand how the Governor called a special session of the Legislature, raised taxes across the board, and as soon as the session ended, declared that the State had a budget deficit. But it happened. Harford Coutiy’s budget situation is no better, and this deal does not help.
I do not begrudge a profit to companies like OPUS, the profits are part of the deal which every party enters into volutarily. I agree that public private enterprise provides opportunities that might not be otherwise available. But if those opportiunities come at the expense of others, they might not be as good as they seem. This deal looks like a good deal for OPUS, good deal for the State, good deal for the Army, bad deal for taxpayers in Harford County.
Feeless Groper says
Patrick- If you are the McGrady that I think you are you come from a long line of deal makers and I understand that you and your mother have a burn against local and county government. I too share some of that burn. But if a deal is not a deal with you how could you ever be trusted?
Feeless Groper says
John- G. Gordon Liddy used to call the lottery the tax on the stupid. In many cases the local voting booth has become our tax on the stupid. If we continue to vote in people who continue to make deals that continue to raise our taxes, who’s fault is it?
john mallamo says
Feeless Groper,
Sir I do agree with you that we get about what we ask for when we vote.
We do have an opportuinty in this case to vote more than in just the general election.
The issues at hand are the Harford County budget, the Harford County property tax assessment cap and tax rate, and the OPUS tax package. I for one am very unhappy about all of them, and am making my case to the County Council, with some expectation that they will infuse sanity back into the fiscal mess that the County Executive has made for all of us. I doubt that his budget debacles can be sustained much longer, without causing irreparable damage.
I would think that all like minded taxpayers would make the same case to the County Council
Patrick McGrady says
I agree that a deal has been cut, and that it should be honored. (and I am that McGrady 🙂 )
However, I think that the citizens from Harford County are getting a raw deal from this. It’s just another problem with the revenue management of the County.
I agree with the payment in lieu of taxes, but I do not agree with the property taxes being calculated based upon the “rentable square feet.”
Economically, that is a more fair way to calculate taxes due. As a result, everyone, not just this firm should be allowed to pay on that basis. Do you understand where I’m coming from? My business has to pay taxes on assessed value, and there is no cap on the assessments.