Can Harford County Afford to Fund Education?

Presented By: Robert Pellicoro R. J. Pellicoro Associates rjpellicoro@aol.com

The real question is: Can we afford not to?

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Credentials of Robert Pellicoro

1975 1985: Administrative Office of the U. S. Courts (Assistant
Chief Budget Division) Prepared administrated and presented to Congress the personnel budget for the Appellate Courts, District and Bankruptcy Courts

1961 1975: Civil Aeronauts Board Auditor, U. S. Airlines 1970 to present: Analyzed local jurisdictions and public school
financial data and prepared reports for local teacher association in Maryland and Virginia. Reviews have been conducted in all Maryland jurisdictions over the past 40 years. Some of the Virginia jurisdictions were Fairfax, Laudoun, Arlington, Virginia Beach and Richmond Counties

Where would the money come from?

Recent Trends
Revenues Expenditures Property Tax

Local Support for the Board of Education

Harford Countys FY 2012 revenues will exceed their budget by $15.5 million.

Harford Countys FY 2012 expenditures should continue the steady trend of overestimates which have averaged $15.4 million annually for the last 5 years.
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While state funding was reduced to all counties, Harford County opted to reduce the property tax rate twice in the past 3 years, reducing the revenue by $5 million each year.

$10 million savings averages $34/year for each tax payer.

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Only 1 county decreased the property tax rate more than Harford County from FY 2009 to FY 2012.
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From FY 2011actual budget to FY 2013 proposed budget, there was a total general fund expenditures increase $35.6 million (8%).

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The BOE budget has increased $3.2 million (2%).Libraries increased $0.5 million (3%), and the Community College increased $0.4 million (3%). The non-educational has increased $31.4 million (15%).

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Property tax actual revenues have exceeded budget by an annual average of $2.5 million.

Constant yield tax policy.

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Harford County has a 7% ($6.4 million) increase in local income tax revenue, for year to date FY 2012.

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Most, if not all of Maryland jurisdictions sharply reduced Pay-Go funding in order to meet the immediate needs of students and citizens. Harford County has done the exact opposite which has had a negative impact on the quality of education. 18

Pay-Go for capital project expenditures have increased from $3.3 million for FY 2011 to $16.8 million in FY 2013 proposed budget.
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FY 2013 Recap
FY 2013 Revenue Expenditures Revenue (000,000) $480.4 $480.4 RJ Pellicoro $485.7 $474.4

Excess

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$9.3

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Its not a lack of funding. Its a combination of priorities and the unwillingness to take the necessary action to weather the economic storm.
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Contact the County Council to demand funding priorities be returned to education.

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County Council Members

Billy Boniface-President 410-638-3525 wkboniface@harfordcountymd.gov
Joseph Woods 410-638-3520 jmwoods@harfordcountymd.gov Chad Shrodes 410-638-3524 cshrodes@harfordcountymd.gov Mary Lisanti 410-638-3526 malisanti@harfordcountymd.gov

Dion Guthrie 410-638-3521 dfguthrie@harfordcountymd.gov

James McMahan 410-638-3523 jbmcmahan@harfordcountymd.gov Richard Slutzsky 410-638-3522 rcslutzsky@harfordcountymd.gov

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