The race for Harford County Executive, among the most high profile races in any election, took an unexpected and tragic turn earlier this year when Republican candidate Stephen Wright died in a one-car accident.
When finished their mourning, Wright’s sizable following was left with a decision for whom to support – the incumbent, a political outsider, or a political unknown.
There is no Democratic candidate on the ballot, so incumbent David Craig faces former Harford County Council President Robert Wagner and Fred Silva in next week’s Primary Election to determine who will square off with Constitution Party candidate Mark Fisher for the job of county executive in the November 2 General Election.
One of these men will take the helm of a county in transition – fighting to preserve farmland in the northern end while ushering in an unprecedented era of high-tech industry in the Route 40 corridor; balancing a down-turning economy and cries for lower taxes while meeting the demands for increased infrastructure and public safety expenses.
The Dagger caught up with those candidates – David Craig, Fred Silva, and Rob Wagner – and posed to them the same set of questions.
Those questions, and the varying answers of the candidates, are listed below:
In one paragraph, please give a brief biographical sketch of yourself.
Craig
I am a seventh-generation Harford Countian. I have been married to my high school sweet heart, Melinda, for 39 years. We have three children and seven grandchildren with an eighth on the way. I entered public service because as a father, I wanted to make sure that my children enjoyed a safe community, with great schools and a good quality of life. Today, family remains at the core of why I continue to serve. Whether it is managing your tax dollars wisely, lowering the tax rate, ending overcrowding in our schools, protecting our rural heritage or preparing for BRAC, the issue affects your and my family. And while we have made tremendous progress on many of these issues, there is still much work to be done. I want to remain your County Executive to ensure a bright future for all of our children and grandchildren.
Silva
I am fifty eight years old, married and have two sons. I have lived in Harford County since 1983. For the past thirty eight years I have served and supported the mission of the United States Army in various capacities. Twenty one of those years were proudly served on active duty in the US Army. I retired from the Army in 1992 and settled in Harford County with my family. For the last eighteen years I have worked for several Department of Defense contractors at Aberdeen Proving Ground and currently serve as a term government employee. I have over thirty years experience in management, program and systems analysis. My formal education includes studies in Automotive Engineering, Political Science (with honors) which included American Government, State and Local Governments, Sociology, American, and World History. My Political Science internship took place in Annapolis with the help of a dear friend and mentor – the late State Senator, Bob Hooper. I am a fiscally conservative Republican committed to serving the people and protecting the Constitution at any cost.
Wagner
I am Rob Wagner, a life-long resident of Harford County, graduate of Bel Air High and Harford Community College. I come from an agricultural background having spent most of my life working the family farm. I have served on the Harford County Council from 1990-2006, 2002-2006 serving as Council President. While serving on the council I developed proficient knowledge of zoning codes and law and reviewed the county budget 16 years. I have a strong conservative voting record as a Councilmember. This County government experience coupled with my life experiences and successful business ventures have well prepared me for the undertaking of being your County Executive for the next four years.
What is at stake for Harford County in this race?
Craig
The future of Harford County is at stake. Our County is facing a major transition. We need leaders who can preserve our agrarian heritage and rural vistas, while at the same time can embrace the promise of BRAC and the high-tech jobs it brings. We need leaders who understand that opportunities like this require investment and place certain demands on local government to provide the infrastructure (schools, water treatment plants, waste-to-energy facilities, etc.) needed to support business development and job creation. We need leaders who are not afraid to make tough and sometimes unpopular decisions, if we want to take full advantage of the opportunities BRAC presents.
Silva
There is a great deal at stake in this election. First, our democracy is at stake thanks to the caliber of people we entrusted with our public offices over the years. This administration behaves like a supreme ruler, thumbs its nose at the Constitution and the Charter, and treats the citizens as royal subjects. Second, our quality of life, public safety and the environment are at stake. Over the years reckless development without consideration for adequate public facilities and collateral environmental damage are placing our citizen’s health and wellbeing at risk. I am the only candidate for County Executive who is focused on restoring a constitutional citizen government and enforcing the laws outlined in the County Charter. I am not motivated by money or power; my only motivation is to honorably serve the public as I have done for most of my adult life.
Wagner
There is a lot at stake in this race affecting many. If we stay with the status quo, the people of Harford County will see a significant tax increase to cover the additional growing of government and reckless spending. We have watched over 5 years our local government become more entrenched with certain developers and tailor bids to cater to certain contractors. We must move this County forward with an open, transparent, ethical and business-style approach that promotes fairness and is responsible to it’s citizens. We must treat the money we are entrusted with in a manner that is frugal and most beneficial. The next four years are going to be a challenge and the direction we take on September 14 will make all the difference for our future.
What is the biggest problem facing the county, and what would you do to improve the situation?
Craig
I think the biggest challenge Harford County faces is the economy and tendency of the State to push unfunded mandates onto the County. I believe we have done a good job responding to the economy. Over the past four years we have reduced property taxes by over $24 million and reduced the size of government. At the same time, we worked hard to improve Harford County’s economy by attracting employers who brought 5,400 new private sector jobs to the County. While I am proud of this, the truth is that I could have reduced the property tax rate by 10 cents more, had it not been for the state pushing unfunded mandates onto the County. Hopefully this will be solved when Bob Ehrlich is elected Governor and Harford County has a real partner in Annapolis.
Silva
The biggest problems facing our citizens and businesses in the county are high taxes and out of control spending. Small businesses are unable to expand, buy new equipment or hire new employees. Many citizens, particularly retired seniors on fixed income cannot afford the high property taxes. Once again this administration has needlessly grown the county government and is guarantying loans to individuals and private businesses that in my opinion are not entitled to any public money. The exact amount of debt the county citizens are on the hook for guaranteed loans is not known at this time but, estimates place the amount in the hundreds of millions. First, I will stop the practice of financing or guarantying loans to any private business unless the services are provided for a public need. Corporate welfare will not exist in my administration. And second, I will appoint a committee to review the impact of taxes on individuals and businesses, and look for a means to reduce the tax burden on those most affected without reducing necessary services.
Wagner
I believe the biggest problem facing our County will be how to pay down our indebtedness in an already down-turned economy. Over the past 5 years our indebtedness has soared and we are facing further reductions of State dollars while absorbing more expenses. It will be a struggle to maintain the current level of services without placing additional burdens on our taxpayers if we stay on this course. Our upcoming County budget is already starting with a substantial deficit due to the spending of one time monies for reoccurring expenses. I believe it can be accomplished but it will require a more business-style approach. I will bring a well qualified Director of Administration that has sound financial and management skill to help us achieve our goal.
In addition to the other benefits that BRAC might bring to the area, what impact do you feel that the injection of income will have on the local tax rate? Will the new arrivals allow the county to hold the line on taxes–or even lower them? Or will the added residents increase the burden on the county to provide services, and cause further tax increases?
Craig
I am excited to see that our investment in infrastructure (schools, water treatment plants, waste-to-energy facilities, etc.) has helped Harford County attract new businesses as part of BRAC. The 5,400 new jobs we have realized (with many more to come) are helping improve our local economy and tax base. Our goal is to cut the tax rate to below $1. BRAC is helping make this possible, as is our continued commitment to making County government more efficient. If, however, the State continues to pass unfunded mandates onto the County and to defer its responsibilities onto County Government, achieving this goal will be more difficult. As with any growing community there will be some upfront investment costs, but if the growth is managed well then the continual long-term benefits outweigh those costs. I firmly believe that if we continue to manage BRAC well that Harford County will become central Maryland’s economic engine.
Silva
The additional income should provide much needed revenue for Harford County. I don’t foresee any significant changes to the property tax rate however; income tax rates may rise given the current administration’s lust for spending.
Since the property taxes here are lower than most places in New Jersey, the new arrivals may have more spendable income due to lower property taxes. Given the current administration the new arrivals will most likely have no impact on lowering taxes. More than likely the current administration will find a way to increase taxes because of the new arrivals.
The added residents have already increased the burden on the county before they even arrived. New housing and improvements on the infrastructure are being finance by Harford county taxpayers. Tax increases will be necessary if we continue to subsidize the development industry to accommodate the influx of BRAC. The new arrivals will more than likely search for more affluent areas with lowest crime, better schools and lower taxes. Cecil County or Delaware may be more attractive to many of the new BRAC employees than Harford County. If we continue to increase taxes we may find that BRAC personnel won’t want to relocate to Harford County.
Wagner
I have never believed that BRAC would deliver as much to our County as was projected. The numbers we hear today are substiantially lower than earlier projections. While many of the “new people” are renting in the County, the positive impact is lessened. Certainly if there are large numbers of “new people” arriving, they will add burden to our already stressed infrastructure (i.e. roads, schools). Little has been done in preparing for any infusion of additional people resulting from BRAC. What has been accomplished thus far yields little tax benefit to our County.
“When finished their mourning, Wright’s sizable following was left with a decision for whom to support – the incumbent, a political outsider, or a political unknown.”
He campaigned as the conservative candidate, and it seems his “followers” should have shifted toward someone who is truly conservative and not Craig.
This isn’t what happened though; they went with Wagner because he has the better chance to win. He has never done anything to prove he is a conservative. I have asked on three different articles for someone to name one thing that Wagner has done as a conservative, and all three have gone unanswered.
Silva is a)conservative and b)not Craig, but he has little chance to win, so they went with the candidate who has name recognition.
I’ll ask again, what has Wagner DONE to PROVE that he is a conservative? He talks like one, but just because it quacks like one…
Wagner? please talks with no bite and Silva??? SAtay Craig, we know what we have… He is doing better than Average,he will improve
Louie would you please tell me how Mr. Craig is doing better than average? Also how will he improve? If he wins he will be in his final term why would he want to improve? He has not improved over the last five years what difference will the next four make. Look at the facts of what he has done to us over the last five years. Look at his spending, look at your tax bill I bet it has increased about 40% while on his watch, look at the amount of debt that we as a county are now holding. Dig a little and see how much more debt has been approved but not yet bonded.
Yeah Louie, what were you thinking? We should have just not prepared for BRAC, and let it just be a big mess when everyone got here. Those schools weren’t necessary either, we could have just kept all of those kids crammed into the already over-packed school. All the kids coming over because of BRAC, they could have fit into those schools also.
Come on Louie
Hey I did not relaize that our enrollment is increasing. The last time I looked we had a declining enrollment. I also did not realize that we had so many families with kids moving into the county because of Brac. I must have overlooked that fact. Maybe they should have built the new elementary school in the correct area. You know where the kids are. But we had to please others, so the hell with the taxpayers.
I am a Taxpayer and have kids in schools. I for one am very happy that David Craig took the bold step in funding new schools for our kids. So, when you say to hell with the taxpayers, need I remind you that a majority of taxpayers in this county have kids in schools. You may be done raising your kids, and therefore have no reason to care. If that is the case, what a selfish person you are.
Taxpaying Mom
What I am saying is that they should have built the new elementary school where it is really needed at Campus Hills. That where the overcrowding is the most.Also if I did not care about the childrens education I would not say anything.
We build the new school on Red Pump to meet the overcrowding problem, Right? Then why does Craig then let the developers clear the area to add more house to crowd these new schools. Harford County only received 72 Million in Federal funds for BRAC, while Baltimore County received 600 million. Why? Because Craig didn’t ask and complete the necessary paperwork to get it. He did fill out the paperwork to get Clark Turner money by floating bonds for him. If the county residents were Craig’s friends he would get the job done for them.
“Klark Turner”
Do you really think that is why we didn’t receive Federal BRAC funds? Doesn’t have anything to do with Jim Smith (D in a close county) vs. Craig (R in a solid R county)?
Also, can you please provide your sources? I feel as if those numbers were made up…
The Red Pump school is costing us more money then Campus Hills. Additionally it will be overcrowded before opening. It was selected by the county council, who circumvented the school board by tieing their hands, to allow for more development.
BRAC is a myth! Those are smart people a few will move here but most will move to DE or PA and just drive to APG. Why pay MD taxes?
If you add in the extra back and forth gas mileage and extra wear-and-tear on your car, I highly doubt living in Delaware is a plausible alternative.
I’ve seen two new houses in my neck of the woods sell recently, and I am 100% sure one of them was to a relocating family.
Myth? Well, someone please tell me then to wake up, because I just had to relocate my family to Harford County. I would love someone to commute with me to work and see all the traffic coming on and off post. Also, I guess the huge buildings going up on post are for show? We did have other choices to move to, however, Harford County best resembles the Ft. Monmouth area from where we came. We also noted the county’s good school system and nice parks. On another note, you have not lived in a Tax Hell until you have lived in New Jersey.
On another note, you have not lived in a Tax Hell until you have lived in New Jersey. Ok, I will give you that one. I still don’t see a big number of people living in MD when PA and DE are so close. I worked at APG for a couple of years and they all lived out of MD.
I am working in the new buildings at APG where the people From Monmouth are now starting to move in. Just today I overheard several talking about purchasing homes in Harford County. The comments I heard were positive and reflects on the groundwork done in preparation for the BRAC move. Of the three candidates running for the Republican ticket, only Craig has a solid plan to accomodate this very important change for Harford County. Everyone has been hit with the financial downturn in the Nations aconomy, but we in Harford County have fared better than most. I don’t think now is the time to elect someone else who would have to basically start over from the beginning and figure out what to do about these issues. I am voting for David Craig so that all these advance plans that have been taking shape over the last several years won’t have to be scrapped so someone new can try out thier own ( if they have one ) plan.
I find it interesting to see any Craig supporters on this site. Those who are friends of Craig have gotten jobs with the county making six figures. They’re spending their two or three-hour lunches in the campaign headquarters or putting up signs. Take a look at where HCC’s retired president and buddy of Craig works now. Yep – the county. In a job that was never posted and no one knows about. This is only one example. Can I prove this right here or right now? No. My own job would be at stake. But do a little research on your own. Ask county employees in confidence if they respect Craig. I’m not in love with Wagner either, but lets be honest here – those who are voting for Silva are voting for Craig because they are taking votes away from “not Craig.”
I wish citizens could see from the inside how blatantly crooked things have gotten in the last several years and how many jobs have been given to buddies even though employees have to sacrifice because theres not enough money for health insurance, training, computers, etc. It makes me sick.
I am tired of seeing republicans fight each other on this website. Lets join together and change things around here. Please.
I am skeptical that you actually work at the county, but I have no proof, so I won’t argue with you. What I can debate is the attitude of the county workers I know. The few that I know are happy with Craig (none of these six figures guys) and will gladly vote for him again. Before you claim that it is for job security, these are positions that would survive the turnover if it happened.
Also, I hate arguing too. I will gladly do my best to get rid of the cause of all the problems in the county, starting with “the problem” in District 7. I wish the people of the Route 40 GOP club and the North Harford club would realize they are being used for one man’s ego. Someone wants to be chair of the delegation so much, he is out of his district, up in North Harford working for two candidates who will vote him president of the delegation. This is the same man who two years ago called one of the members of the delegation the most offensive word in the English language (IMO). Does this represent you?
Don’t get me wrong, I am not happy with the incumbents voting record, and I would have been supporting Gallion/Seman but Gallion associated himself with the wrong crew. This went off the topic County Executive race-wise, but do you agree with me in regards to inter-party arguing?
County Watch,
As a so called county employee you should know that the County Executive does not have any purview over Harford Commmunity College HR decisions or actions. HCC falls under state jurisdiction with a state appointed board as a governing body. While you are at it, let’s blame Craig for our failed foreign policy in the Middle East.
Jim B. this is not an HCC job, but the college IS funded by the county. Lacalle retired and is done with the college. His new county job is a retirement job even though he was taken care of very well by the college. Mr. Lacalle was apparently hired by the county executive, who is his friend, under Craig’s notorious “Friends and Family” program. Craig has done many things to save budget over the past year. He discharged long-standing employees at police escort but was kind enough to provide a cardboard box to carry away their belongings in. One even left this world due to the distress provided by Mr. Craig. Craig then created a buyout program and froze positions in an effort to save money. Now, we see the real plan is to hire his posse: Ports and Lacalle. This is only to add to his sister-in-law and other sidekicks. Isn’t he a little too old for a posse? Shame on Lacalle for accepting a county position when there are plenty of people who actually NEED to work; it’s not just something to fill up their spare time. Lacalle knows the budget problems from his work at the college but it does not bother his conscience to take a job from someone who NEEDS it. Maybe Craig will find funding for Lacalle to have a newly-minted batch of his famous gold coins made. Even the liberal Aegis made a political cartoon of that joke. As for Ports, after he lost his political career and having a tough time in a tough economy, Craig came out of the phone booth to his rescue to put him on the payroll. So glad many working-class folks like me could make room for the politically-connected elite. “Let them eat cake” would be Craig’s reply, I suppose.
I thought that LaCalle got a job with SAIC.
It didn’t work out.
You make more sense than any of these other ocmments. You are too sensible to really be a republican.
This Lacalle stuff sounds made up. Call Human Resources and ask if he is an employee. Whether someone works for the County is public info. They have to tell you.
what? You can’t make things like this up! This is no joke. Lacalle’s employment may or may not be a full time position and it could be that it is on a contractual status and not as a county employee; either way, it was a very quiet deal and if funds could be found to employ him, funds could have been found for other things.
I had to see this post for myself, it is all my co-workers have been talking about. This LaCalle stuff is a lie. I have access to the financial programs. Jim LaCalle is not on payroll nor is he in the system as a contractor. He hasn’t been paid one dime by the County.
Maybe HCC hired him as a contractor?
I’m no fan of all of Craig’s decisions, but lying about him is just plain wrong.
The Wagner people can’t be to high and mighty on this issue either. Rob got his wife a plum job in my department when he was Council President.
Jim LaCalle works part-time for HC government as an independent contractor. You should delve deeper into your files.
Treasury Employee,
I have doubt that you work for treasury,because if you did you would know that my job title is cashier.Hardly a PLUM job. I started working for revenue six years ago and was well qualified for this job. I have worked in banking most of my adult life. Having said that, my salary after six years is only $33,000.00 a year. No special treatment here. As I said before hardly a Plum job.
Get your facts straight before you open your mouth.
Tina Wagner
Tina Wagner – Thank you for the laugh! That is funny.
If Treasury Employee is such a valued employee, put in charge of all of this confidential employee information, why is he/she on here violating the confidentiality of that material! He/she needs to get off The Dagger during work hours and find Waldo (Jim Lacalle).
Treasury Employee: County Watch and Displaced Employee are right on the mark. Maybe Lacalle hasn’t started yet. Maybe he decided after all not to accept (let’s hope) and we can thank him for being a true leader and doing what’s in the community’s best interest. No matter what, that indeed was the deal laid on the table. You don’t disagree that Craig has plenty of family and friends on the payroll then – since you do have access to the records?
How is everyone so sure that he was offered a job?
Because I have a friend who told me that his brother is LaCalle’s second cousin and they were talking about it at a bar-mitzvah. So it is true.
Ironic, but someone I saw out on the town in Bel Air this evening confirmed that Lacalle has been at functions on the county’s behalf. I don’t know how he does it, but Craig can get away with having shadow employees.
Treasury Employee and APC the county emloyees are tired of the Craig way! They start to talk and the news trickles out. There was no big news release for Jim Ports! They did a story in the Aegis a several month after he was employed and working. These position are HIGH $$$$$$$$$ positions.
so from what you all have been saying we have a crony minded cash cow vs a man who has had some significant personal problems which have been no secret. nice choices. wahoo.
I am amazed that there is no Democrat in this race. I think Jesse Bane could have beat Craig. I can’t vote for Wagner because of his past indiscretions. That’s unfortunate. I am interested in learning more about Fisher. I wonder if a third party can actually do something.
You have got to be kidding. Bane will be lucky to keep his own office this election. He would have no chance against Craig and if he is the best the Democrats could offer they are in worse shape than I thought.
LOL Observer – I think Jesse Bane would make Dave Neeper his Chief of Staff.
Obama – OMalley – OBANE – Oh My….
Was waiting to see who threw mud first- looks like Wagner – got the mail today…Wagner, I was leaning towards you, however, you just lost my vote.
Up until now it had been Joan Ryder doing the mud slinging for him…
Louis, Before you say that Mr Wagner threw mud first maybe you should check your facts and watch some of Mr. Craigs speeches so that you can see who really threw the mud first. You must talking about the mailer that Mr. Wagner sent out. I got the same one. Being really interested in this election cycle and especially this race I have been checking facts throughout this election and do not see where Mr. Wagner did anything wrong in his mailer. From what I see what he stated is all facts not mud slinging. Now if I am mistaken will you please point it out to me so that I can recheck my facts. Maybe you should reconsider where your vote is going to go.
I just went on David Craig’s facebook, he states that the 40% increase was a result of rising state assessments on property. From what I can tell, the county has no control over that process. He said that what he did have control over was the tax rate and the property tax cap, both of which he said were lowered the past two years.
I got a case of vodka that says Wagner loses on Tuesday.
Took it right out of his car.
Just joking.
Now I am doing no mud slinging for anyone. I am just stating the facts as I see them. $40 million dollars in deficit, the County is at the top of the debt ceiling and approaching $1 Million dollars. The $17 million they used to balance the budget is a one time occurrence. Where do you think the money is going to come from in 2011 and 2012? I figure it will cost the taxpayers who own property about $.16 cents per $100 of assessed value. Hang on, that is only one tax that is coming. Even County Council people tell me that we are okay until after the election. What were they thinking?
Ms. Ryder, you have a very perverse view of reality. You have stated no facts, only innuendos and made up numbers. Unlike the state, the county can’t run a deficit. Hope you don’t apply your fuzzy math to your clients real estate transactions.
Reality Check: In response to Ms. Ryders post she does have an error in her statement. The debt is not reaching One million it is reaching ONE BILLION dollars. You are saying that she has made up numbers. Well I will have to disagree with you. If you look at 12/31/09 we had the following debt:
General Obligation Bonds (P&I) 611,137,582
Ag Perservation Install (P&I) 84,886,956
Water & Sewer Bonds (P&I) 184,184,712
Total (P&I) 880,209,250
Now that total figure does not include any additional debt add since 12/31/2009. So just add that on and we might be at One Billion. Makes want want to stop and think for a moment doesn’t it. Oh and by the way the Stae of Maryland has to run a balanced Budget. They cannot run a deficit Budget. Just thought you might wnat to know.
And yet Harford County has a AAA bond rating.
Must be doing something right. According to bond rating firm Fitch:
“Financial operations are characterized by maintenance of sound reserves, a conservative approach to budget development, and timely revenue and spending adjustments. Fiscal policies governing multi-year planning, reserve retention and use of surplus funds for capital and other one-time spending aid in steady operating performance.”
First of all what are Bond ratings based on? Secondly what book did copy that text out of?
http://www.harfordcountymd.gov/Press.cfm?PressID=3021
http://www.daggerpress.com/2010/05/27/harford-county-assigned-aaa-bond-rating/
Sorry to have to do all of your research for you.
You send a press release and a article from the Dagger and call that research. Well with the reseach that you are capable of I see why you are in favor of Mr. Craig.
Interesting, after reading a bit more, I learned that the water and sewer bonds are dedicated funds for an enterprise fund separate from the General Fund. Payments for these bonds are made by revenues generated by water and sewer customer payments and hook up fees, so you can’t really count this fund as general indebetness by the county taxpayers. The AG Preservation fund is funded by the state and also by a portion of the county’s recordation taxes, these funds are by no means borrowed!! Now, when you look at General Obligation Bonds, this is indeed the county’s true debt. Much of that debt is a result of the county having forward funded new and expanded schools. Some of this debt will be reimbursed to the county from the state. This was done to help the county prepare for BRAC and the thousands of people moving to the county. What would Wagner have done? Sit on his hands like he did the 16years on the council and let our infrastructure deteriorate? Hell, if Wagner was in charge, this county would have flubbed the BRAC opportunity years ago. Looks like Craig actually acted like a true leader and prepared this county for what will be unprecedented economic growth and opportunity. Investments in Infrastructure = Economic Growth & Jobs! Humm…what are most Americans concerned about? If Harford County is to grow economically, it must make investments in critical infrastructure to allow those jobs to flourish. I believe this is one of the primary responsibilities of any local government.
Always preaching the constitution and liberty and justice for all, then, you have the audacity to post on your facebook page that you are trying to get out of your civic duty to be part of a jury. Shame on you.
You saw what happened the last time someone fact-checked something Joan Ryder said.
And you are not slinging mud for Wagner? What was that hit piece full of made up statistics with no evidence? Seemed like mud slinging to me…
Someone is just upset that they didn’t get all of the extra Farm Fair money they didn’t get? I guess the fiscally responsible thing would have been to give you that extra taxpayer money.
Miss Ryder’s statements and numbers are very much accurate, They more accurately reflect an FY 2012 requirement for a minimum of $40M dollars in additional revenue rather than a deficit. The numbers themselves are reflected in the FY 2011 budgets of the Harford County Public School System (HCPS) and the Harford County Operating budget.
First the HCPS budget presentation acknowledges a $12M “Structural Deficit” for FY2012. That number does not include the additional dollars required to preserve Teacher salaries, nor does it include the funding required for Red Pump Road School start up, nor the dollars to bring septic systems into compliance with State law. $20M dollars is a conservative number.
Second the Harford County Operating budget. The FY2011 budget projected $17M dollars for school debt service, paid for from recordation tax revenues. Recordation tax revenue is generated from all of the documents that the County is required to record. The rate is fixed at $ 6.60 per $1000 of recorded activity. 2/3 of that goes to School debt, 1/6 to Parks and Recreation and 1/6 to Water and Sewer. In order to generate $17 Million in revenue the County must record approximately $2.5 Billion dollars in activity. In order to accrue $17 Million dollars for school debt, the County must record $3.9 Billion dollars in activity. This is not impossible, however considering that last year, the County only accrued $4M in recordation taxes, it is highly unlikely. Factor in the additional debt service and the projected decline in Property tax revenues from the reduced property tax rate, the reduced assessed values and the reduced Homestead Tax Credit, it is not far reaching to estimate that the Operating budget will also require an additional $20 Million dollars in revenue.
These numbers are what is known today. The unknowns are what the State will do with pension plans and what binding arbitration will do for Teachers Salaries. Forty Million dollars could very easily become $70 Million.
The actual deficit Miss Ryder mentions will occur in FY2011. The County used a projection for recordation taxes, not dollars in hand. If the county does not record the $3.9 Billion dollars in activity discussed above, the deficit will be $17 Million dollars minus whatever dollars are accrued. Considering that in FY2010 Recordation Tax revenue amounted to only $4 Million dollars, the County may need $13 Million dollars to balance its budget.
As for the AAA bond rating, it is due in large part to the clause in every bill and resolution that authorizes Harford County debt. That clause clearly states that the County has unlimited taxing authority to pay debt service, and pledges it full faith and credit to do so. The current situation in Harrisburg PA should serve as a lesson in fiscal management. It is not clear what the city will do, however, they have already missed one debt service payment. Expectations are that their insurer will make the payments for some period, and that the insurer is likely to sue the City to make them raise taxes to make future payments.
The situation in Harford County may not be that dire, but it is troublesome. In FY2012, without a significant increase in revenue, or equivalent reduction in spending/services 60 percent of the operating budget will be allocated to education. At least 10 percent of the operating budget will be allocated to debt service. That leaves 30 percent for everything else. Since the County has established its debt ceiling at 10 percent of the total budget, and there are strict limitations to using debt for operating costs, there is not much flexibility.
On another comment, the statement that Property Taxes rose due to increased assessed property values is not quite accurate. The state does provide an assessment of each property for tax purposes, and they had been generally rising until last years triennial assessment. Recognizing the burden imposed on property owners, the State also provides 3 methods of relief that may be exercised by taxing authorities.
First, the state calculates the constant yield, which if adopted, provides the taxing authority with the same amount of money it received in the previous year. By adopting the constant yield, under circumstances where property values are increasing, the taxing authority would get as much money as the previous year, but would not raise property taxes. Using the increased assessed value and a constant tax rate, the Taxing Authority would get more money than the previous year, which would result in a tax increase.
The second method of relief delegated to the taxing authority is the ability establish the homestead tax credit ceiling. This allows the taxing authority to reduce the amount that taxes can rise in any given year. In Harford County the Homestead Tax Credit established by the County Council in the FY 2010 budget is 5 percent, which is welcome relief from the 9 percent it had been. It could and should be reduced even further, to reflect the economic situation, but it is still relief.
The third method delegated by the State is the authority to establish the tax rate. The County Council reduced the tax rate in FY 2010 from $1.08 per hundred dollars of assessed value to $1.06. In FY 2011 the County Executive and the County Council reduced the tax rate from $1.06 to $1.04. Again welcome relief, but it is still one of the highest rates in the State. Please note that these numbers were rounded for my convenience, and that tax rates in Aberdeen, Bel Air and Havre De Grace are different.
Therefore, while it is true that property assessed values did rise, the impact was determined solely within the County.
The resolution to the current budget situation will come solely, or in some combination, of increased taxes, cuts in spending and services or unprecedented growth. Miss Ryder’s projection of a rise in property tax of $.16 per hundred dollars of assessed value will in fact provide an additional $40 million dollars in revenue for Fy2012. Second, spending and service cuts. It is anybodies best guess how that will be apportioned. A review of what happened in the recent past would indicate cuts will not be well received. Third unprecedented growth which will increase the assessable property base, income tax revenue and all other revenue accounts. Expectations are that BRAC will fill that role. That remains to be seen.