County faces $250 million in deficits | Maryland Gazette (HometownGlenBurnie.com)

County government faces a $250 million cumulative deficit over the next five years unless local leaders curb spending, lift the county's tax cap or find new ways to raise money, the report said.

"The report should be treated as a 'call to action,' " task force members concluded, urging county politicians to implement the report's many recommendations.

Suggested solutions to the looming shortfall include:

Raising the local income tax.

Bestowing the county more power over the Board of Education's spending.

Imposing taxes on cell phones and tourism.

Cutting benefits for new county employees.

County Executive John R. Leopold convened the 16-member task force last year to study the county's finances, and he said Friday that he would use the report as a well of ideas and a blueprint moving forward.

Mr. Leopold's budget officer, John Hammond, estimated the scope of the deficit, but fears of gloomy fiscal times have clouded the Arundel Center since the last administration.

Previous task forces forecast an inevitable shortfall because of generous benefit packages awarded to county and school employees, but observers say the warnings went unheeded.

"The greatest frustration is that the task forces occur, a lot of work goes into them - volunteer work from good minds - and these reports sit on the shelf and gather dust," said Bob Burdon, a member of some previous task forces and president and CEO of the Annapolis and Anne Arundel County Chamber of Commerce. He did not serve on the current task force, but said it is critical for leaders to act now.

"The reason this task force and its recommendations are so very important to us today is because the times have arrived," Mr. Burdon said. "The issues are real, the impacts are real and we're feeling it right now."

While most of the private sector has switched to defined-contribution retirement plans such as a 401(k), the county promises new employees traditional pensions and to cover 80 percent of health care costs after retirement. More than three-quarters of the county's $1.22 billion annual budget pays employees or retirees, and the gap between tax revenues and expenses next year alone is estimated at $15.5 million.

Beyond personnel costs, the slowing economy, weak housing market and rising energy costs darken an already dim outlook.

Task force chairman Art Ebersberger said it was impossible to isolate one or two of the report's recommendations as the most important solution to the county's fiscal woes.

"There's not one 'push this button and everything's fixed,' sort of deal," Mr. Ebersberger said.

"It would be a disservice to say just this one thing (is causing the problem.) Everyone's tried to fix just one problem. That's like sticking a finger in a dam and saying it won't break."

The report outlines several suggestions to run the county government more like a business by streamlining work, eliminating redundant employees and hiring a Chief Information Officer to help technology make government more efficient.

Mr. Leopold has repeatedly promised not to increase income or property taxes, and he reiterated his position this week, although his administration already has sought increases to a host of fees to raise money, including a $500 fee for ambulance rides and a higher tax on hotel rooms.

"Our focus should be, if we can, on out-of-state residents," Mr. Leopold said.

County Council Chairman Cathy Vitale, R-Severna Park, who had not yet read the report, said the county needs to improve operations and save money before asking taxpayers for more.

"The simple reality is costs are going up regardless of where you are," she said. "Whether you're in the public sector, in the private sector or in your own home budget, things are getting more expensive."

Dan Nataf, a political science professor and director of The Center of Local Issues at Anne Arundel Community College, cautioned that Anne Arundel taxpayers are wary of giving more to the government. For any wholesale change to the county's tax cap or other taxes, politicians would be wise to formulate a range of options and get public feedback.

"I think the key is laying the ground work, telling the public this is going to happen," he said.

The report echoed many of Mr. Leopold's opinions on issues, such as controlling school spending and instituting specific taxes.

He said he had "very little" input in the report and added, "I wanted them to be an independent body that would make independent recommendations."

The report has been shrouded in secrecy since the initial draft was completed in February. County officials repeatedly declined to give copies to the press, and County Council members were not privy to the report until it was formally released Friday.

Mr. Esbersberger said Mr. Leopold chose not to release any of the information until after the county's budget season ended, and the report reflected the sentiment of the task force's original report.

County officials said a copy of the final report will be posted on Anne Arundel's Web site, www.aacounty.org.