Washington Suburban Sanitary Commission officials say they are proposing a 7.5 percent fee increase to water and sewer fees.

The agency serves about 1.8 million residents in Montgomery and Prince George’s counties. The Washington Post reports that commission Chairman Roscoe M. Moore Jr. said in a letter to both county governments that the agency needs 22.3 percent increase to its capital and operating budgets (http://tinyurl.com/7m5pe74).

For county consumers, a proposed 5- cent plastic bags tax could make shopping at retail stores a bit more expensive.

Prince George's County will look to join both Montgomery County and Washington in promoting sustainable consumer practices, as both state and county officials push for legislation that would encourage the use of reusable shopping bags in the county. The state legislature, led by the efforts of Del. Barbara Frush (D-Anne Arundel and Prince George's) and Sen. Paul Pinsky (D-Prince George's), will present a bill in the next legislative session to allow the county council to impose mandatory fees on customers when using disposable bags at retail stores.

The legislation will encourage customers to bring reusable shopping bags to stores, which would cut down on the use of plastic bags, according to District 1 Councilwoman Mary Lehman. Plastic bags have proven to be a significant pollutant in the area, specifically the Anacostia River, according to Brent Bolin, director of advocacy at the Anacostia Watershed Society, a nonprofit environmental organization dedicated to restoring the river.

Prince George’s County Executive Rushern Baker has authorized a $1 emergency fuel surcharge for taxi fares in the county.

Baker has signed an executive order that authorizes the county’s Department of Environmental Resources to establish a $1 per trip surcharge. Anyone 60 years of age and older and any fares related to county contracts are exempt.

Several letters to the editor address the General Assembly's action in increasing the state alcohol tax. Bill Countess calls it a "money grab" that won't curb underage drinking; Susan Peltz feels it unfairly benefits Baltimore and Prince George's County; and Brian Cox says it will be a great benefit to people with disabilities.

A bill sought by the Prince George's County Council to charge shoppers who use plastic bags failed to clear the General Assembly, lawmakers said.

Senate Bill 721, which would have given the county permission to levy a five-cent "bag tax" on disposable bags at convenience and grocery stores, died after only 12 of 23 county delegates supported the measure in a vote April 5. Sixteen votes were needed for the measure to go for a full House vote.

"It's very disappointing to me, personally," said County Councilwoman Mary A. Lehman (D-Dist. 1) of Laurel, who had requested the legislation as a way to cut down on litter and encourage the use of reusable bags. "But good bills rarely pass the first time out."

Delegate Jolene Ivey, D-Prince George's, said she believes the tax increase will make it harder for underage people to buy alcohol.

"It's way overdue," Ivey said Saturday.

But Republicans opposing the measure in the Democratic-controlled House became enraged as they tried fruitlessly to block the new tax in a debate that stretched into late Saturday night. They also repeatedly criticized the distribution of the proceeds mostly to urban and suburban areas, with little for rural parts of the state.

"When does it end?" yelled House Minority Leader Anthony O'Donnell, R-Calvert, before slamming down his microphone. A handful of Baltimore delegates said "never."

Almost $67 million in surplus money is funding one-time investments in Prince George's County Executive Rushern Baker's budget despite county jobs and services being cut.

His proposed fiscal 2012 budget calls for making three one-time grants with leftover money accumulated in the general fund.

Baker's budget chief, Thomas Himler, said the county has $116 million in surplus funds because the county brought in more revenue and spent less than expected for several years. But he said officials chose not to spend it on recurring costs because the county wouldn't have the funding next year.

The county is facing a projected $77 million budget deficit, and Baker's budget includes across-the-board cuts to agencies.

Prince George's County could create a Green Business Advisory Board to help promote environmentally conscious commerce through tax credits if a plan introduced Tuesday is approved.

The advisory board would be composed of appointees by the county council and county executive. Its main purpose would be to provide advice regarding the implementation of the county's tax credit program as it relates to green businesses.

Prince George's County Executive Rushern Baker unveiled his proposed $3.15 billion budget for fiscal year 2012 this week.

Among the measures called for in the proposal are the hiring of 150 new police officers, a 2.3-percent increase in educational funding, the creation of a $50 million fund to spark economic development and $10.7 million for a new library in Laurel.

If approved by the County Council, the budget, which represents a $10.2 million increase over this year's budget, would maintain the continued freeze on hiring and county employees would not receive cost-of-living or merit-pay increases for the third year in a row. In addition, 145 full-time vacant positions in the county would be eliminated.

Council members from Greenbelt, New Carrollton, College Park and the Town of Berwyn Heights met Wednesday evening in College Park over issues of mutual concern facing Prince George's County. Widening the Baltimore-Washington Parkway drove much of the discussion, as well as a visit by the county executive, Rushern L. Baker III, who talked ethics and the economy for about 90 minutes with the four-cities coalition.

"Clearly in terms of the emphasis on this administration is economic development," said Baker, isolating potential investments primarily around the county's metro stations. "If we do not grow our tax base then we're going to be in real trouble, and for far too long we relied on residential property taxes."

The federal government's ambitious plan to clean up the Chesapeake Bay could cost Virginia, Maryland and the District billions of dollars each and add hundreds of dollars to the annual property tax bill of local homeowners, state and local officials said.

A new study on the Environmental Protection Agency's plans to reduce pollution flowing to the Bay shows that it could cost each affected city and county between $259 million and $386 million a year for the next 15 years.

The study done by the Virginia Municipal Stormwater Association, a group of Virginia localities that operate storm sewer systems, represents the worst-case scenario for Virginia's cities and counties. But even states that are able to develop alternative cleanup plans of their own could still be forced to raise billions in tax dollars to pay the bill, officials said.

When FBI agents arrested then-County Executive Jack Johnson in a corruption inquiry in Prince George's in November, his newly elected successor, Rushern Baker, was loath to talk about the case. Baker didn't want lurid controversy over an allegedly crooked government to distract attention from jobs, schools and other pressing issues.

It's different today. Six weeks after taking office Dec. 6, Baker talks openly about the need to battle the county's "pay to play" culture.

"We've got to deal with the elephant in the room," Baker (D) said in an interview Thursday. "The perception is you can't get a fair shake in Prince George's County. Whether that's real or imaginary, we've got to deal with it. And the only way to do that is to assure people that here are the extra steps that we're going through to say that is not acceptable in Prince George's County."

Senate President Thomas V. Mike Miller Jr., D-Calvert and Prince George's counties, said taxes will be a tough sell this year, but "at some point in time we're going to have to pass a gasoline tax."

Maryland's 23.5-cents-per-gallon gas tax is lower than those of 27 other states -- including neighboring Pennsylvania and West Virginia. The revenue would return dollars to the state's Transportation Trust Fund, which O'Malley has raided in the past as a source of funding transfers.

On top of fixing the 2012 budget, the legislature is expected to tackle ballooning pension and health benefits costs -- which are $33 billion underfunded.

"We might not end session on time," Miller said, predicting certain gridlock after studying his colleagues' faces during the two-hour budget briefing. "The fact that we're into an extra session will put added pressure on us to do what's right for our constituents and make the tough cuts."

Prince George's County Executive candidate Henry C. Turner Jr. did not pay a quarter of a million dollars in taxes until the federal government put a lien on his home.

Turner owed the federal government $245,508 in unpaid income taxes for the tax period that ended Dec. 31, 2004, according to a copy of the Internal Revenue Service lien obtained by The Washington Examiner.

"We have made a demand for payment of this liability, but it remains unpaid," the lien states.

For a Landover woman putting herself and her daughter through college, raising one high school-age son and another son who's severely disabled, Tuesday was a million-dollar day.

Well, after taxes, it could be closer to $600,000.

Paula Evans received the news that so many dream of hearing: She won the lottery and, she said, a chance to "live comfortable."

Prince George's County topped the state in total direct tourism impact in fiscal 2009, according to the Maryland Office of Tourism.

The county generated about $82.6 million through county admissions and amusement taxes, county hotel and motel taxes, and state tourism sales taxes. That was up from $66 million in fiscal '08.

J. Matthew Neitzey, executive director of the Prince George's County Conference and Visitors Bureau, attributed most of the success to National Harbor and the county's ability to attract interest in its sporting venues such as the Showplace Arena in Upper Marlboro and the Prince George's Sports and Learning Complex and FedEx Field, both in Landover."People are really starting to recognize the county's stature as a sporting venue in the state," he said.

Maryland Gov. Martin O'Malley (D) signed legislation Tuesday that will provide a tax break for Prince George's County homeowners despite objections by the Maryland-National Capital Park and Planning Commission.

Senate Bill 683 mandates taxes paid by county residents toward the M-NCPPC, the Chesapeake Bay Water Quality Fund and the Washington Suburban Transit Commission will not increase by more than 10 percent per year. Currently, property tax increases are capped under the Homestead Property Tax Credit, which the legislation expanded to include the three other taxes.

At the close of the Maryland General Assembly session this month, the fiscal prospects for Prince George's County were looking up. County Executive Jack B. Johnson said that schools would be better funded and that there would be no need to furlough or layoff county employees, thanks in part to a hard-won increase in state aid of $18 million.

But a bill awaiting Gov. Martin O'Malley's signature complicates that scenario, and also puts the governor in a political bind, because it would mean a loss of tax revenue in the county -- to the tune of about $18 million.

The bill would place a cap on taxes that county residents pay to the Maryland-National Capital Park and Planning Commission, an agency that serves Prince George's and Montgomery counties. The cap, because of the way it would be applied, would cost the commission $18 million in the next fiscal year, and Prince George's has been relying on the commission to supplement its operating budget.

Maryland drivers won't see any toll increases in the new year, but Prince George's County drivers can expect $40 tickets if they speed through school zones.

Speed cameras are slated for installment in at least 50 school zones in the county within the next several months, following legislation effective Monday.

Move over Montgomery County and look out Baltimore, Prince George's County has plans to boost its own bioscience industry.

The Prince George's County Planning Department of the Maryland-National Capital Park and Planning Commission has released its study on the viability of building a biotech incubator within the county, determining that such a facility could generate as many as 1,900 jobs and $4.4 million in annual tax revenues.

The Prince George's County Biotechnology Research and Development Center Study, two years in the making, was prepared by the Angle Technology Group of Charlottesville, Va. It recommends a multi-tenant flagship facility to offer wet lab space for young bioscience companies, accelerate business growth, workforce training programs for biotechs and research space for related university and federal lab programs to help users attract federal research funds. This would establish an identifiable focal point for the county's bioscience development, the study said.

Prince George's County was awarded the annual "Economic Engine" award by the Maryland Office of Tourism Development's for outstanding jobs creation, positive economic impact to the region and the State, and exemplary contributions to Maryland's tourism industry.

The Maryland Office of Tourism Development (MOTD) has been charged by the General Assembly to track sales tax revenues from such tourism-specific categories as hotels, restaurants, retail, car rental, and recreation.

Struggling to find ways to compete in the region and stimulate major development, Prince George's County is increasingly creating special taxing districts, a strategy used sparingly in the past.

But critics worry that officials might be diluting the effectiveness of the tactic by using it for smaller projects, instead of restricting its application to mixed-use projects that bring large numbers of jobs to the county.

"What's up?" was my question to Montgomery County Delegation Chairman Brian Feldman. He responded, "Well you know, Gail, with this being an election year, most politicians are very guarded about discussing the most difficult topics. But, the one topic they will delve into is transportation." He's right, it is a difficult topic and at the moment transportation is "hot" with politicians and the business community around the state.

With the stark increases in gas prices last year and still high prices at the pump Marylanders are buying less. The Maryland Transportation Trust Fund relies on the gas tax as its biggest source of funding. Less gas sold means less in taxes; less money means fewer transportation projects. There is a backlog right now worth $40 billion for improvements to highways, transit and ports and airports. The 2008 General Assembly took back $250 million from the fund to balance the budget. The budget is still not looking well. Will a further reduction be forthcoming? It is not out of the realm of possibility, as such raids on the fund have occurred 10 times over the last 30 years. The fund is in major trouble....

Business leaders in the greater Baltimore and Montgomery and Prince George's areas are poised to come up with some answers to, as Donald C. Fry, president and CEO of the Greater Baltimore Committee says, "If not the gas tax, then what?"

Rising unemployment; declining job opportunities for citizens; ever-increasing state and local income, sales and property taxes; growing fees for government services; county budget deficits combined with uncontrolled spending; stagnant small business openings; lack of contracts going to minorities; outsourcing of jobs to other jurisdictions or non-citizens; no high-end retail; growing housing foreclosures; strip malls being approved for development while many businesses at strip malls are folding; rising crime and gang violence; financially challenged hospital system; increasing numbers of county residents without legal presence; and a crumbling transportation and school infrastructure.

During a convention-style event Thursday for the Maryland horsing industry, Prince George's County horse farm owners, particularly those who live in the rural tier, said there is a continued need for assistance and legislation to help the embattled industry survive.

Hundreds of people from around the state gathered during the Maryland Horse Forum at the Show Place Arena and Prince George's Equestrian Center in Upper Marlboro.

At the forum, many Prince George's residents who own horse farms said they are seeking county legislation that would allow small horse farms to be rezoned as agricultural land, which would afford them the same tax breaks that large farms receive. Currently, small horse farm owners pay the same tax per acre as residential land owners.

Collections of personal income, corporate income and sales taxes were all down, Franchot said. State lottery sales, however, were up, he said.

Prince George's delegates voted overwhelmingly this morning to kill a controversial tax increase on homeowners proposed by County Executive Jack B. Johnson (D), but officials warned that layoffs are likely to be announced next week.

"There's no way around it," said Michael Herman, Johnson's chief of staff, after the delegation vote. "We still have a large budget deficit that we have to fill."

Prince George's County has pulled the trigger on its net taxable income proposal, a complicated budgetary issue that Montgomery County delegates had warned could cause friction between the neighboring jurisdictions. Or, at least, it has kind of pulled the trigger.

Prince George's officials have been quietly pushing for a few years to change the annual date when the state looks at federal income tax returns to decide each jurisdiction's wealth. The calculation is key because it helps determine how much state aid each county receives. If the date were changed, Prince George's would get a lot more aid; Montgomery would get less.

The Prince George's County Council has voted its support of the county executive's plan to increase property taxes.

The vote, five to three, with one abstention, backs Jack Johnson's request that the General Assembly change the formula used to calculate property tax hikes....

The county executive is asking the general assembly to change the current property tax formula, in hopes the added revenue will help reduce the $130 million deficit. "We can only raise the tax to 5 percent or the cost of living index. Statewide, the law says you can do it 10 percent, so what we want to do is raise it to the statewide level," said Johnson.

Desperate to raise money for basic county services, Prince George's County Executive Jack B. Johnson is asking state lawmakers to approve a bill that would raise the size of annual property tax increases.

Johnson (D) has asked the legislature to consider a bill that would change the formula used to determine property taxes. Under state law, property taxes cannot increase by more than 10 percent in any year, but each jurisdiction sets its own rate. In Prince George's, the tax cannot increase by more than 5 percent over the prior year. The bill would allow property taxes to go up by 10 percent during fiscal 2009 and 2010.

And now for a full-on wonk topic that has the possibility of bursting into raw politics in Annapolis in the next few weeks: how the state calculates the net taxable income of each county.

The topic consumed a good two-hour discussion by the Prince George's delegation late Thursday. Its members are convinced that's the reason the county's state aid has gone down this year more than any other local jurisdiction.

While bleak economic times will mean millions of dollars in cuts in the Prince George's County school system's budget, officials are optimistic that the economic stimulus package proposed by President Barack Obama will ease some of the county's fiscal woes.

Gov. Martin O'Malley (D) released a proposed state budget Jan. 21 that showed Prince George's schools would see a $35.2 million decline in direct state aid in next year's budget. The loss is about 2 percent of the county school system's total $1.68 billion budget.

Prince George's County should consider raising taxes and imposing new fees in order to maintain services during the current recession, according to a report by a San Francisco, Calif.-based financial consultant.

"To continue levels of service and public safety, the county will have to find new revenue sources," Calvin Grigsby wrote in his report for the county, "Adjusting to the Fiscal Impact of the Economic Downturn."

The council heard the report during its Jan. 5 retreat. The report recommends the council consider "revenue streams" to survive the economic downturn, including raising property and hotel taxes and imposing a commuter tax on visiting federal employees.

Program Open Space "is a vital tool for land preservation and for the environment," Howard County Executive Ken Ulman (D) said.

"Our concern is that the pot is small and getting smaller," said Mary Bradford, parks director for the Montgomery County Department of Park and Planning. "People just need to know what the impacts are."

...Funding for Program Open Space comes from a percentage of Maryland's real estate transfer tax. The program was established in 1969, and since then it has helped buy more than 5,000 park and conservation areas. In Prince George's County, officials estimated that Program Open Space has provided 90 percent of the dollars used to buy open space and half of the dollars used to develop land and programs for parks.

"Over time, it's been a very important funding source for us," said Chuck Montrie, park planning supervisor for the Prince George's County Parks and Recreation Department.

Maryland Senate President Thomas V. Mike Miller Jr. told a gathering of county leaders yesterday that he thinks the state should allow universities to raise tuition and should increase the gas tax as it looks to close a growing budget shortfall.

He acknowledged that raising the gas tax will probably be politically untenable -- House Speaker Michael E. Busch (D-Anne Arundel) told the same group yesterday that the General Assembly has "no appetite" for increasing taxes -- but said that without new revenue, there will be no state money for transportation priorities, including the construction of the Purple Line, a proposed mass-transit link between Montgomery and Prince George's counties.

General Assembly lawmakers this month will consider a bill providing tax breaks in Prince George's County to companies that provide services with minimal pollution.

The proposed bill would establish special zones where "green" businesses can get a break on property taxes in exchange for locating there.

Prince George's County Executive Jack B. Johnson (D) is reaching out to legislators in hopes of getting the General Assembly to help reconcile an estimated $70 million deficit projected next year.

In a closed-door meeting Nov. 12 with senators, delegates and County Council members, Johnson allegedly said that he may ask for their help in finding new ways to increase the county's taxing authority to make up the projected deficit in next year's budget.

Under county charter amendments, local tax increases are required to go to voters for approval. The charter amendment has effectively stopped the county from raising taxes on residents for about 25 years.

Anti-tax sentiment prompted Prince George's County voters to reject a ballot measure yesterday that would have raised the tax on telephone bills to aid schools, but a widely contested attempt to curb annual property tax increases in Montgomery County was too close to call....

In Prince George's, County Executive Jack B. Johnson (D) recommended raising the local telephone tax from 8 percent to 11 percent of monthly bills to generate $17 million a year for schools. The tax would have cost residents as much as $1.50 per bill, county spokesman John Erzen said. The county took back $14 million from the school system's $1.7 billion operating budget this fiscal year to help close a $57 million revenue shortfall.

In addition to slot machines and early voting in the state, Prince George's voters will decide Nov. 4 whether to borrow $361 million for new buildings and roads in the county — and if they are willing to pay more on their telephone bills.

Voters are being asked to approve five bond sales, a five-day extension in notices for legislative hearings and an increase in telephone taxes from 8 to 11 percent. The tax increase is Question F, the second-to-last of nine referendums on the ballot.

Today Americans for Tax Reform, a non-profit taxpayer advocacy organization that opposes all tax increases, announced its opposition to Question F that will appear on the Prince George's County, Maryland November ballot. Question F would increase the current sales and use tax on virtually all telecommunication services, including cell phones, cable voice, and landlines phones from 8% to 11%, amounting to a $17 million tax increase. When combined with the current 6% state sales tax and additional emergency 9-1-1 fees, an 11% sales and use tax would push the state and local telecom tax burden to 19% in Prince George's County.

Many Prince George's County voters appear unaware of a local ballot question that could raise telephone taxes on county residents and businesses.

The proposed 3% tax would be levied on all cell and land-lines used in Prince George's County, and would be in addition to 11% in state and federal taxes already levied on communications.

The Prince George's County school board would better serve the citizens of Prince George's County if they would work within the guidelines of TRIM [Tax Reform Initiative for Marylanders] ["Schools see potential for funding in TRIM repeal," March 27]. This would be thinking outside the box.

I strongly disagree with board member Pat Fletcher of District 3. The voters/taxpayers of the county understand what impact TRIM has had. It has held down property taxes.

All TRIM asks our elected officials to do is to tell the taxpayer/voters of the county the what, why, where, who and how these new taxes would be spent on the stated purpose only.

Drive along parts of Sheriff Road into Fairmount Heights in Prince George's County, and it's obvious some properties need an overhaul.

At the intersection of K Street, the corner of a half-demolished building is surrounded by a fence and overrun with weeds. A few blocks ahead, an abandoned building sits with rusty bars on its door and window with the word "COFFEE" written on the roof.

For communities and developers, older abandoned sites such as these are often some of the hardest to turn around. Questions of pollution, required environmental reviews and other development hurdles frequently make prospective developers shy away.

Prince George's County has withdrawn a proposal to trim salary increases for employees this year, in a reversal that came as public safety unions prepared to file labor grievances over the issue.

County Executive Jack B. Johnson (D) had previously asked the unions to reopen their two-year contracts and renegotiate pay to help close a $48 million budget gap. He threatened that layoffs or forced furloughs might be necessary if the unions did not agree to trim their pay increases.

$14 Million Trimmed From Schools

County Executive Jack B. Johnson (D) has proposed cutting $14 million in school funding and trimming raises for employees to close a $48 million shortfall in the county's budget, as tax revenue has entered a free fall in the tightening economy.

A spokesman for Johnson confirmed that a deficit has emerged in a budget that was adopted by the County Council on May 21 and will take effect Tuesday. The new gap became apparent when June revenue reports were examined, said the spokesman, John E. Erzen.

The Prince George's County Revenue Authority, its tax receipts sputtering as home prices plunge, has adopted a novel way to brake the slide.

By cracking down on front lawns that resemble used-car lots and on trucks parked in residential areas, the authority reckons it can collect some of the $15 million in unpaid tickets and make neighborhoods more attractive to potential home buyers and prospective businesses.

"A lot of the enforcement is for aesthetics because things are disorderly looking, but we also want to increase property values and make the community more livable," said Troy Thompson, director of parking operations for the authority.

Seeking to overcome a potential budget shortfall of nearly $100 million in the tightening economy, the Prince George's County Council voted yesterday to raise the county's income tax and the recordation tax levied on home sales.

The council members voted 8 to 0 with one abstention, offering no public comment as they approved the two tax increases that were proposed by County Executive Jack B. Johnson (D). The panel is scheduled to vote on Johnson's proposed $2.67 billion budget today.

Council to discuss proposed tax hike

With days left before the Prince George's County Council debates proposed tax and fee increases that would take effect this summer, residents and government watchdogs are calling for the increases to be decided by voters later this year.

Lawyers for both the Prince George's County Council and County Executive Jack B. Johnson (D) have concluded that county leaders can raise the local income tax rate and the tax imposed on the recordation of home sales without asking voters for their approval at the ballot box.

As part of a new anti-crime effort to help stem the tide of thefts from vehicles, the Bowie Police Department is placing brightly colored cards on windshields that warn drivers who leave valuables in plain sight.

John Nesky, Bowie's deputy police chief, said that cellphones, portable GPS units and shopping bags are among the items most often stolen. Valuables should be locked in a trunk, glove compartment or console between the driver and passenger seats or stowed under a seat, Nesky said.

Between September and February, the city of Bowie averaged about 29 thefts from vehicles per month, according to police statistics.

Lawyers for both the Prince George's County Council and County Executive Jack B. Johnson (D) have concluded that county leaders can raise the local income tax rate and the tax imposed on the recordation of home sales without asking voters for their approval at the ballot box.

Johnson has proposed increasing those taxes as part of a recommended $2.67 billion budget for the 2009 fiscal year, a 1.3 percent spending increase over this year. He says the revenue is needed to close a potential gap in the county's budget amid a deepening housing crisis that has caused county tax revenue to fall off....

Anti-tax activist Judy Robinson, who helped organize the successful 1996 effort to require tax increases to go to referendum, told the council she believed the legal advice is incorrect -- and promised a court challenge if it decides to increase the two taxes.

"I suppose the only way -- if you decide to go forward -- that we can decide who is right is to take it to the court," she said.

Debate in the Democratic-led chamber was sharply limited yesterday, a move that angered Republicans, several of whom argued that senators should have made deeper cuts to what Sen. Ulysses Currie (D-Prince George's), chairman of the Budget and Taxation Committee, said was already a "frugal" budget....

State aid to public schools would increase by 3.5 percent. That is less than would have been mandated under a 2002 school funding measure known as the Thornton law. Lawmakers revised a formula in the law during a special session last fall called by O'Malley to address the state's long-term finances....

Since the special session, at which lawmakers raised taxes by $1.4 billion a year, the state's economy has been more sluggish than expected, prompting analysts to revise downward projected revenue by $333 million for the current fiscal year and the upcoming one.

In Tight Budget Year, Legislators Argue Over How to Make Up Projected $200 Million in Revenue

...Another scenario for repealing the computer services tax would require passage of a bill that would impose a surcharge on high-income earners.

During the special session, lawmakers raised Maryland's top marginal income tax rate from 4.75 percent to 5.5 percent....

We should strongly support a couple of great public safety proposals that appear in the 2007 Preliminary Public Safety Master Plan recently released by the Prince George's Planning Board. The Public Safety Master Plan proposes that we create a crime surcharge to help fund public safety and move as quickly as possible toward bringing the size of our police force in line with the national average for jurisdictions of our size.

We should encourage the state legislature to create an offender-based crime prevention surcharge in Prince George's County, which would be a fine paid by a monetary surcharge or collected through disposition of seized property that would be dedicated to public safety resources, like additional police officers and more fire and EMS personnel⁄equipment. Law-abiding taxpayers should not be [the] only ones who bear the burden for crime in our county. Crime should become an increasingly rare and expensive proposition for criminals.

..."It wasn't a 'rah-rah' tone," said Prince George's County Executive Jack B. Johnson (D), among a large contingent of guests at the State House in Annapolis. "It's a roll-up-your-sleeves-type tone. We have some real important issues. . . . The economy is very solemn."...(video)

The discontent with the tax increases was not universal. Some voters said they approved of O'Malley's actions and believed that they were a necessary evil. "Nobody likes taxes," said Commodore Monk, 60, of Prince George's County, who saw the budget crisis as a problem O'Malley inherited. "But if that's going to make the state more fiscally sound, and deal with some of the other pressing issues of the state like improving the school system and crime, we have to do what we have to do."

Homeowners in Maryland should brace for higher property assessments arriving in the mail this week even as the real estate market has softened, with prices falling in some parts of the state....

In Maryland's Washington suburbs, assessments increased 51.6 percent over three years in Prince George's County, second only to a 75 percent surge in Baltimore. Montgomery County assessments rose 16.2 percent, the smallest increase of any jurisdiction in the state. Charles County assessments climbed 41.4 percent, Anne Arundel County 34.9 percent and Howard County 24.2 percent....

-The Prince George's County Revenue Authority will start using the SmartBoot to collect more than $10 million in fines for 18,000 delinquent traffic, parking and red light tickets.

The SmartBoot, an electronic self releasing immobilization device, will be installed on the vehicles of the most serious offenders who have accumulated two or more outstanding tickets that are at least 90 days old, the Revenue Authority announced yesterday....

Rural tier legislation and senior assistance among items expected to be revived in 2008

The Prince George's County Council didn't get around to deciding more than 21 bills and resolutions in 2007, including a proposal to preserve farmland by letting owners sell development rights and a $500-per-year grant for struggling seniors, according to a review of legislative records.

Homeowners in a Prince George's County senior citizens community are complaining about a special tax that was levied against them to build streetlights, roads and sidewalks in their neighborhood.

County auditors are examining claims by residents of Central Parke at Victoria Falls that the tax was created unfairly and has been used improperly. A 2005 law allows developers to shift some expenses usually paid by the builders to homeowners by creating special taxing districts. But many homeowners said they were never told about that and others say they learned just as they were closing that they'd have to pay an extra $600 to $800 a year for water and sewer service. But now they're getting tax bills for nearly twice amount, and they learned that the money was being used to pay for infrastructure. The tax will rise a maximum of 2 percent a year for the next 30 years.

The possibility of closing the 982-acre Rosaryville State Park in Upper Marlboro appears to have been averted as the Maryland General Assembly voted to end corporate tax loopholes to generate funds for the state park system before its special session closed Monday morning in Annapolis....

Gov. Martin O'Malley (D) led the lawmakers to raise $1.3 billion in additional taxes with an estimated $4.2 million going to keep the parks open, said Olivia Campbell, a spokeswoman for the Maryland Department of Natural Resources....

The new tax law that passed at the end of the special session closes a loophole that enables corporations to skip transfer taxes and real estate recordation taxes, or 2 percent of sales prices paid by residents and small businesses....

...The legislature cut about $213.9 million in aid to counties. Prince George's will lose $40.4 million, the most of any jurisdiction.

The tax increases include a new schedule for income taxes, which push percentages to 5 percent, 5.25 percent and 5.5 percent. Most income now is taxed at 4.75 percent.

Offsetting the new brackets are increases in the personal exemption and the earned income tax credit. The state will net $28.1 million from all the income tax changes.

Prince George's County will lose about $7.6 million in local tax revenues, in part because of the changes in exemptions, which mean less income will be taxed, according to an analysis by the legislature's budget analysts....

Del. Doyle L. Niemann (D-Prince George's) wants to set up an authority and put an end to the financial woes that have plagued Prince George's Hospital Center.

Del. Barbara A. Frush (D-Prince George's) says the state should cut funding for the intercounty connector, the controversial highway that would link Prince George's and Montgomery counties.

And Del. Joseline A. Pe¿a-Melnyk (D-Prince George's) wants to place the balance on unused gift certificates into a fund for education.

Budget writers in the Maryland Senate were peppered with questions yesterday about whether their deficit reduction plan protects the interests of working families and why they had decided, with no public debate, to propose taxing landscaping, video arcades and visits from the Geek Squad and other computer services.

The pointed discussion on the Senate floor and elsewhere came as lawmakers prepared to start voting today on proposals to raise taxes and hold a referendum on slot machine gambling in an effort to close a projected budget shortfall of at least $1.5 billion.

"If we fail, we will be simply sticking our heads in the sand," Sen. Ulysses Currie (D-Prince George's), chairman of the Budget and Taxation Committee, told his colleagues.

After a punt by the Prince George's County Council, more education funding will depend on voters.

PRINCE GEORGE'S County public schools spend less money per student than any district in suburban Maryland or Virginia. The average teacher salary in Prince George's also lags behind. The cramped spending is a result of the county's wrongheaded tax limit. That a promising solution is now jeopardized underscores the failure of county leaders to unite behind an effort to address the issue.

County Executive Jack B. Johnson (D) had proposed increasing the tax on telephones to produce an estimated $17 million each year for the schools. Mr. Johnson argued that because the state imposes the tax, it doesn't have to get voter approval as required by the Tax Reform Initiative by Marylanders (TRIM). Mr. Johnson was backed by an unequivocal opinion from the state attorney general. Unfortunately, that wasn't enough for the County Council, which decided to submit the question to voters in November 2008. It's hard to argue with democracy, but the council's action strikes us as little more than a dodge on the always-controversial issue of raising taxes....

There is a pretty big debate going on over whether our county government can raise taxes for wireless and landline telephone service without bringing it before the voters in a referendum. In the interest of accountability, I think the voters should have their say in deciding whether to pay this significant increase in their rates.

According to published reports, we have one of the highest tax burdens in the region for wireless and landline phone service. On multiple occasions, voters have put in place laws requiring the county to put new taxes to referendum.

There is a dispute about whether the county can raise this telephone tax without a referendum due to a possible loophole in the laws because this tax originated as a state-approved tax instead of a county tax. However, in recent years, the County Council has raised this tax above and beyond the original levels imposed by the state legislature.

So does the county have to get voter approval for another increase in this tax?

I personally believe the answer is ''Yes."

But even if our county leaders believe they technically don't have to get voter approval, I believe they should still err on the side of following the spirit of the voters' intent and bring the issue before the community in a referendum.

If they make the case that the programs (education, health care, etc.) that this new tax will be used for are worthwhile, our elected officials should trust that our voters will make the right decision.
Mel Franklin, member of the Prince George's County Democratic Central Committee, Legislative District 27A

The Prince George's County Council adopted a $2.63 billion spending plan yesterday without taking action on a proposal to increase telephone taxes, as jurisdictions throughout Maryland moved toward completing budgets for next year.

Also yesterday, the Howard County Council approved an $812 million budget. The Montgomery County Council is expected to approve a $4.1 billion budget today.

In Prince George's, council members said county law requires them to vote on tax increases separately from their budget. Even so, they included the $17 million expected to be raised by the telephone tax increase proposed by County Executive Jack B. Johnson (D). They could vote on the tax proposal in June. If the council does not approve the tax, the county could use money from surplus funds or some other source to fill the gap.

Johnson proposed increasing the tax on land lines and mobile phones from 8 to 11 percent to help fully fund the school system's budget request. National telephone companies complained that the increase would make the Prince George's phone taxes among the highest in the nation. Some residents have also insisted that the proposal be put to a referendum, because the county charter requires that all tax increases get voter approval. Johnson contends that the telephone tax is an exception because it was imposed by the state.

In a letter submitted to the council yesterday, Johnson again urged approval of the tax increase, saying it would provide "a reliable source of ongoing revenue" for schools.

In all, the budget for the year beginning July 1 represents an 11 percent increase in spending over the current year and includes $1.66 billion for the county school system. It provides a 15 percent increase in spending for police and 14 percent more for the county fire department.

The council boosted spending for the county's community college by $7 million, which council members said would help defray tuition for an increasing number of residents who attend the school.

"We believe this was necessary to provide our students with another venue through which they can pursue higher education," said council member David Harrington (D-Cheverly).

The budget also includes $250,000 for consultants to examine the future of county health care and $12 million for Dimensions Healthcare System, the troubled nonprofit group that runs the county's hospital system. The council and Johnson agreed last month to provide funding to keep the system running through June 2008.

In Howard County, a council member's repeated attacks yesterday failed to derail plans by County Executive Ken Ulman (D) to help Howard Community College purchase and renovate an 18th-century estate in Elkridge.

The push by Courtney Watson (D-Northeast County) to curtail spending for the college was one of several efforts to trim Ulman's first budget as county executive. On a split vote, the council reduced Ulman's proposed 28 percent increase in the fire tax for Howard's western residents.

Instead, the fire tax will increase about 10 percent for residents in the western area. The tax will rise about 8 percent for those who live in the more densely developed eastern portion of the county. The tax increase will help launch a rural fire protection program and support more firefighters.

Jack Johnson wants to push through a bigger fee on telephone service. In other words, a new tax.

More than 10 years ago the voters of this county approved a referendum question which gave voters the right to reject county tax hikes in the voting booth. For more than three decades, a voter-imposed cap on property taxes has been in force here.Johnson feels he can raise the phone tax without a referendum because it was passed by the General Assembly in 2002 to raise money for schools. Others disagree. In the county budget for next year, Johnson has proposed a 3 percentage point increase in the phone tax. Johnson said the money is needed to fully fund the school system's budget.

Perhaps the schools do need more money, but Johnson's plea for that tax revenue might be a tad more credible if, say, the County Council gave up its costly fleet of cars, Johnson stopped using a small army of county cops to transport him hither and yon, the County Council stopped mailing out very expensive slick "newsletters" that serve no other purpose than to put their faces in front of Prince Georgians at taxpayers' expense in hopes of some votes, and, if county cash is such a problem, surely the County Council and Johnson should stop handing out hundreds of thousands of dollars in dubious "grants" to a wide variety of churches and organizations, some of which claim they never even received the money allegedly handed over to them. Where'd it go?

And if financial woes in the county are so threatening that we have to face a hike in the cost of using our phones, why in heaven's name do County Council members get to sign up with the county retirement fund? In our view, they shouldn't. Why should this be a one-way sacrifice on the part of already overburdened county taxpayers? Before having the gall to try and squeeze more money out of Prince George's residents, the county's elected officials should try a little cost cutting themselves.

Judy Robinson, a county activist involved in the original successful tax cap effort in 1996, told the Washington Post this week, "I believe absolutely that this is a trust issue, the trust people have that government will follow the law and not do sneaky little things to try to get around it." We couldn't agree more.

Prince George's County leaders are looking for ways to raise more money for schools without having to ask voters to appprove a property tax increase.

So County Executive Jack Johnson is asking the County Council to approve a 3% increase in the telephone tax. Johnson spokesman John Erzen says county officials believe the phone tax is not subject to a referendum requirement approved in 1996 because it was imposed by the state. The council has already increased it from the state minimum of 5% to 8% in 2002.

But the major regional telephone companies and anti-tax activists are promising a fight. Judy Robinson, a county resident who helped lead the 1996 referendum effort, is threatening to sue the county if it raises the tax without going ton the voters.

State lawmakers from Prince George's County and a key House committee passed legislation yesterday that would tax residents to infuse millions of dollars into the county's financially strapped hospital system.

The Prince George's House delegation unanimously approved a bill that would tax county residents to help pay off more than $100 million in debt held by Dimensions Healthcare System, the nonprofit company that runs Prince George's Hospital Center in Cheverly.

The House Health and Government Operations Committee approved the levy on county residents and a separate measure that would provide the hospital system with $50 million over five years through a proposal to raise the state's tobacco tax. That measure, part of a larger bill designed to increase access to health care for uninsured people statewide, is likely to pass the House, leaders say. But the bill's future in the Senate is uncertain.

Senate President Thomas V. Mike Miller Jr. (D-Calvert) has said he opposes the plan because of the state's looming budget shortfall, which is expected to exceed $1.3 billion by next year.

Meanwhile, County Executive Jack B. Johnson (D) and the County Council strongly opposed the delegation bill to increase county taxes. He said responsibility for the hospital's troubled finances should not rest solely on the county. The County Council voted unanimously Feb. 27 to oppose the measure.

Under the bill, property taxes would be increased by as much as 2 cents per $100 of assessed value. Because county government taxes are capped by law, the increase would be added to the portion of property tax bills that goes to the Maryland-National Capital Park and Planning Commission. A taxpayer with a house assessed at $300,000, the county average, would pay an extra $60 a year.

The measure would allow the governor to set up an authority to devise a long-term plan for the hospital system, which includes health-care campuses in Laurel and Bowie in addition to the hospital in Cheverly. The authority would be charged with negotiating with management companies interested in taking over the hospital system. The authority also would acquire the hospital system's property and assume its $138 million bond debt and its pension liability.

Del. Doyle L. Niemann (D-Prince George's), the bill sponsor, said yesterday that passing the bill was a "prerequisite for additional money from the state." Many delegates said they had no alternative to supporting the measure.

Johnson has said that he is negotiating with a company to take over the system from Dimensions and that the company is seeking tens of millions in public compensation.

"I understand this may be a burden to the county, but a closure would be more a burden to the patients that walk through the doors each year," said Del. Barbara A. Frush (D-Prince George's).

County officials tried to dissuade the delegation from approving the bill.

Iris B. Boswell, deputy chief administrative officer for finance, said the legislation would have "significant negative impact on the county."