After a scare due to a delay in the state’s budgeting process, the Prince George’s County Council adopted a $2.7 billion budget on May 24.
“As One Prince George’s County, we made sacrifices, adjusted expectations, and focused sound financial management decisions on the services citizens expect and deserve, and we achieved a FY 2013 County Budget that emphasizes our shared priorities for job creation and a thriving economy, quality education, access to quality, affordable healthcare, and safer communities,” said Council Chairwoman Andrea C. Harrison, D.-Dist. 5..
Unlike most years, the council had to wait until the Maryland General Assembly to finish its special session and wrap up the state budget before the county budget could be completed.
That budget includes $1.66 billion for Prince George’s County Public Schools, funding for 150 new police recruits, 70 new Fire/EMS recruits, 20 new correctional officers, $11 million for the Prince George’s County Executive Rushern Baker’s Economic Development Incentive (EDI) fund, and $15 million for Dimensions Healthcare. There was also enough to provide county employees one-time salary bonuses. This was all done despite an extra $20 million in costs due to the shifting of teacher’s pensions from the state to the counties.
Baker was pleased with the budget from the council. He said it showed how the legislative and executive branches of the county’s government are working together to improve Prince George’s.
“This budget is a testament of the good working relationship between the County Council and my administration and the commitment we share to move this county forward despite limited revenue,” Baker stated. “We made some tough decisions, but together we made investments in our schools and children, public safety, economic development and healthcare that will continue to make Prince George’s County a great place to live, invest, work and visit.”
Not everyone will be pleased with everything in the budget. Baker wanted to increase the recordation tax by $.50 to $3 per $500 of assessed property value. Instead the council gave him a $.25 increase. That’s a good compromise for Baker, but not so much for county real estate professionals who say the increase is counterproductive to jumpstarting an already weak housing market.
“Upfront buyer closing costs including recordation fees, transfer taxes, property taxes, down payments and lender fees are the largest impediment to homeownership,” Ruth Wright, former president of Prince George’s Real Estate Professionals for Change (PGREP4C), said in an e-mail to the {AFRO}.
“Unfortunately, the County is experiencing a very challenging housing market. Increasing housing costs is counterproductive to rebuilding our local economy and a barrier to stabilizing our local real estate market,” she continued. “Again, I oppose any efforts to increase the County recordation fee and overall closing costs.”
Despite that, Baker says the extra funding provides the county with “greater financial flexibility for the tough times ahead in the next few years.” To cover that gap, Baker and several members of the General Assembly continue to lobby for a casino in Prince George’s.
The budget becomes effective July, 1.
