In his 2011 fiscal budget, Montgomery County Executive Isiah Leggett (D) proposed police officer reductions as a means to alleviate the $779 million county deficit. Reductions in police officer positions are expected to save $2 million, according to county spokesman Patrick Lacefield. Forty total police officer positions will be eliminated, and 16 of 33 officers in Montgomery County Public Schools (MCPS) will be cut, according to a Montgomery County news release.
All 25 MCPS high schools have one serving Educational Facilities Officer (EFO). This individual plays a role in fostering relationships between students, addressing school security issues and collaborating with MCPS and the Montgomery County Police Department (MCPD). Several middle schools, such as Martin Luther King Middle School in the Germantown District and Argyle Middle School in the Wheaton District, also have EFOs. The MCPD and the County Council have not yet decided which EFO positions will be cut. "At this time, we don't have any specific information," Assistant Principal Myriam Rogers said.
Due to the prevalence of at-risk teenage behaviors as well as MCPS's burgeoning gang problem, EFOs are becoming more involved in protecting the school community. On April 28, 2009, Springbrook High School students Anthony Torrence and Yonata Getachew attempted to detonate a bomb and set off a fire with the intent to harm staff members and deface school property. They were stopped when Torrence revealed the pair's plans to EFO Rodney Barnes.
The elimination of EFO positions may have an adverse effect on MCPS schools. "It would have some impact on developing relationships with students," Blair's EFO Officer Darryl Marshall explained. "Some students come to talk to the EFOs, so we are there to deal with certain issues." Like Rogers, Marshall has not heard which officers will be cut. "They have not come to us about what schools will be selected or affected," he said. SOURCE: Silver Chips
Showing posts with label recession. Show all posts
Showing posts with label recession. Show all posts
April 28, 2010
Understanding Maryland's stimulus money: 3.8B of $789B
Late last month, the Congress approved, and President Obama signed into law, the American Recovery and Reinvestment Act of 2009, better known on newscasts and in office chatter as the "stimulus package." The stimulus package injects $789 billion into a sagging economy with the hopes of reviving our nation's fiscal health and creating or protecting 3.5 million American jobs. The number staggers the imagination: $789 billion. Almost a trillion dollars. Surely, our problems are solved, right? Let's do the math.
Of the $789 billion provided by the stimulus package, $3.8 billion worth will make it to the state of Maryland. Thatís only a little more than ten percent of Marylandís total state budget for last year. To put it another way, thatís less money than we spend in Montgomery County alone each year. And that $3.8 billion doesn't arrive here in one tidy sum. Instead, itís spread out over the next three years, arriving in installments of about $1.8 billion in FY 2009, $1.85 billion in FY 2010, and $156 million in FY 2011. Of the $1.8 billion the State will receive this year, $560 million: about 30% -- will be allocated to paying the State's share of Medicaid.
Another $360 million -- goes toward education, and the Governor almost immediately announced that for FY2009-2011, the legislature will fully fund all ìmajorî State K-12 education formulas, including Thornton funding and Geographic Cost of Education Index (GCEI), which is critical to jurisdictions like Montgomery County, with a generally higher cost of living. The State will also provide dedicated funding of $180 million to Title I and $208 million for special education.
If you're still doing the math, you'll see that of that initial $1.8 billion Maryland will receive for the current year, we're left with about $800 million statewide -- for projects like highway repair and maintenance, homelessness prevention, workforce development initiatives, and energy assistance programs. While the $1.8 billion the state will receive this year in stimulus funding will definitely help, it's really only a paper cup trying to bail out a swamped ocean liner. These can all be worthwhile expenditures, but it adds up quicker than you might think. It's also important to remember that even before the financial downturn, the State of Maryland was staring at its own brand of economic crisis, with an estimated budget shortfall of close to a billion dollars. Now, with real estate markets sagging or flat, and every form of tax revenue down, Maryland is looking a projected FY 2010 deficit of nearly $2 billion.
So, while the $1.8 billion the state will receive this year in stimulus funding will definitely help, it's really only a paper cup trying to bail out a swamped ocean liner -- and at the end of two years, once stimulus funds run out, Maryland will still be a billion dollars short. Even though it would have appeared from press accounts that stimulus funds would somehow provide the state with the hefty check it needed to fill its coffers and balance the budget, it really only addresses the issues that everyone is facing as a result of the recession. The underlying problems still remain. The reality check is in the mail.
We're starting to get an idea for what the stimulus money means here in Montgomery County ñ and while thereís some good news, we're also filling a pretty deep hole here in the county. True, the county will receive $21.4 million in education funding -- from which MCPS Superintendent Weast has targeted $15.3 million to special education and $6.1 million to Title I schools. However, despite critical needs and plenty of so-called "shovel ready" transportation projects, Montgomery County will receive no funding at all from the $365 million Maryland has earmarked for Transit and Highway projects. Instead, the county will have to settle for a share of the $146 million set aside for road resurfacing projects across the state.
Still, it's not all gloom and doom. Any funding provided by the stimulus package is appreciated and will be helpful. The real trick is to manage our expectations of what stimulus funds will and won't do. It will give us the opportunity to keep some of our most critical services and programs at current levels or better. Itíll also give us an opportunity to compete for a sliver of discretionary funds that we can use for workforce development and other initiatives that invest in our residents and our workforce. But it won't balance our budget. Weíve got some work to do.
Make that a lot of work. Like every other jurisdiction across the country, our county is seeing revenues fall. And as we are seeing in our daily lives, we're just hoping to keep our jobs,our salaries, and what remains of our retirement accounts, but as a result, Montgomery County finds some of our sources of revenue income tax, particularly capital gains, recordation, and transfer taxes have all but dried up. Consequently, Montgomery County is looking at a projected budget shortfall of nearly $520 million. Thatís more than half a billion dollars.
Now, I know that when you hear that our county budget is somewhere in the vicinity of $4 billion a year, it seems like a $520 million gap should be easy to close after all, that's only about an eighth of our total budget. And after all, $4 billion is a lot of money -- so surely, reducing the budget by an eighth should be relatively painless, right? We can freeze the pay and eliminate mandatory service-related increases for every county government employee... but that still leaves us a gap of $345 million to overcome.
There are lots of things we can do to close the gap. We could, for example, reduce services, lay off employees, or freeze salaries and hirings. That makes it difficult to maintain, even at current levels, a lot of the things that make our county such a great place to live. But again, letís do the math, using some real examples. One proposal that I was working on with our employee organizations, and has been adopted by Montgomery County Public Schools, is to freeze the pay for every county government employeeóevery teacher, firefighter, librarian, policeman, and so on. If we provide our employees with no cost of living adjustmentsóand even were to take it a step further (something that was not done during the recession in the 1990's) and also provide no mandatory service-related increases as well -- we'll save $155 million.
That still leaves us a gap of $345 million to overcome. To put his in perspective, thatís about the amount of money the county spends each year for police and the Department of Corrections combined. Or it's also equivalent to what we spend annually for fire and rescue services and the 60,000 students and teachers at Montgomery College. These are four of our largest county expenditures ñ but theyíre also programs youíve indicated are among the most critical. This year, it's likely we'll be able to do everythingwe would like in these areas. This year, these really are the options before us.
What else? We've already vowed not to increase taxes, and the Councilís commitment to staying within the confines of the charter limit is a matter of record. That means that if we want to continue to maintain the services that you've indicated are the most important to you ñ education, public safety, transportation, and caring for vulnerable populations -- then weíve got to look hard at both our revenues and our expenditures and determine where we can make your money work better for you.
That's going to involve some tough questions. Are there places where we can spend less and still maintain a high quality of services? Are there things we can do better to get more bang for the buck? Are there some things we're doing that we frankly shouldn't be doing? Are there things weíre not doing that we should be doing, regardless? I donít know all the answers yet -- but I know we can navigate through this successfully and I'm willing to have the discussion with my colleagues and all of you. Iím hoping the Council shares my commitment to having such a frank conversation. SOURCE: Mike Knapp
Of the $789 billion provided by the stimulus package, $3.8 billion worth will make it to the state of Maryland. Thatís only a little more than ten percent of Marylandís total state budget for last year. To put it another way, thatís less money than we spend in Montgomery County alone each year. And that $3.8 billion doesn't arrive here in one tidy sum. Instead, itís spread out over the next three years, arriving in installments of about $1.8 billion in FY 2009, $1.85 billion in FY 2010, and $156 million in FY 2011. Of the $1.8 billion the State will receive this year, $560 million: about 30% -- will be allocated to paying the State's share of Medicaid.
Another $360 million -- goes toward education, and the Governor almost immediately announced that for FY2009-2011, the legislature will fully fund all ìmajorî State K-12 education formulas, including Thornton funding and Geographic Cost of Education Index (GCEI), which is critical to jurisdictions like Montgomery County, with a generally higher cost of living. The State will also provide dedicated funding of $180 million to Title I and $208 million for special education.
If you're still doing the math, you'll see that of that initial $1.8 billion Maryland will receive for the current year, we're left with about $800 million statewide -- for projects like highway repair and maintenance, homelessness prevention, workforce development initiatives, and energy assistance programs. While the $1.8 billion the state will receive this year in stimulus funding will definitely help, it's really only a paper cup trying to bail out a swamped ocean liner. These can all be worthwhile expenditures, but it adds up quicker than you might think. It's also important to remember that even before the financial downturn, the State of Maryland was staring at its own brand of economic crisis, with an estimated budget shortfall of close to a billion dollars. Now, with real estate markets sagging or flat, and every form of tax revenue down, Maryland is looking a projected FY 2010 deficit of nearly $2 billion.
So, while the $1.8 billion the state will receive this year in stimulus funding will definitely help, it's really only a paper cup trying to bail out a swamped ocean liner -- and at the end of two years, once stimulus funds run out, Maryland will still be a billion dollars short. Even though it would have appeared from press accounts that stimulus funds would somehow provide the state with the hefty check it needed to fill its coffers and balance the budget, it really only addresses the issues that everyone is facing as a result of the recession. The underlying problems still remain. The reality check is in the mail.
We're starting to get an idea for what the stimulus money means here in Montgomery County ñ and while thereís some good news, we're also filling a pretty deep hole here in the county. True, the county will receive $21.4 million in education funding -- from which MCPS Superintendent Weast has targeted $15.3 million to special education and $6.1 million to Title I schools. However, despite critical needs and plenty of so-called "shovel ready" transportation projects, Montgomery County will receive no funding at all from the $365 million Maryland has earmarked for Transit and Highway projects. Instead, the county will have to settle for a share of the $146 million set aside for road resurfacing projects across the state.
Still, it's not all gloom and doom. Any funding provided by the stimulus package is appreciated and will be helpful. The real trick is to manage our expectations of what stimulus funds will and won't do. It will give us the opportunity to keep some of our most critical services and programs at current levels or better. Itíll also give us an opportunity to compete for a sliver of discretionary funds that we can use for workforce development and other initiatives that invest in our residents and our workforce. But it won't balance our budget. Weíve got some work to do.
Make that a lot of work. Like every other jurisdiction across the country, our county is seeing revenues fall. And as we are seeing in our daily lives, we're just hoping to keep our jobs,our salaries, and what remains of our retirement accounts, but as a result, Montgomery County finds some of our sources of revenue income tax, particularly capital gains, recordation, and transfer taxes have all but dried up. Consequently, Montgomery County is looking at a projected budget shortfall of nearly $520 million. Thatís more than half a billion dollars.
Now, I know that when you hear that our county budget is somewhere in the vicinity of $4 billion a year, it seems like a $520 million gap should be easy to close after all, that's only about an eighth of our total budget. And after all, $4 billion is a lot of money -- so surely, reducing the budget by an eighth should be relatively painless, right? We can freeze the pay and eliminate mandatory service-related increases for every county government employee... but that still leaves us a gap of $345 million to overcome.
There are lots of things we can do to close the gap. We could, for example, reduce services, lay off employees, or freeze salaries and hirings. That makes it difficult to maintain, even at current levels, a lot of the things that make our county such a great place to live. But again, letís do the math, using some real examples. One proposal that I was working on with our employee organizations, and has been adopted by Montgomery County Public Schools, is to freeze the pay for every county government employeeóevery teacher, firefighter, librarian, policeman, and so on. If we provide our employees with no cost of living adjustmentsóand even were to take it a step further (something that was not done during the recession in the 1990's) and also provide no mandatory service-related increases as well -- we'll save $155 million.
That still leaves us a gap of $345 million to overcome. To put his in perspective, thatís about the amount of money the county spends each year for police and the Department of Corrections combined. Or it's also equivalent to what we spend annually for fire and rescue services and the 60,000 students and teachers at Montgomery College. These are four of our largest county expenditures ñ but theyíre also programs youíve indicated are among the most critical. This year, it's likely we'll be able to do everythingwe would like in these areas. This year, these really are the options before us.
What else? We've already vowed not to increase taxes, and the Councilís commitment to staying within the confines of the charter limit is a matter of record. That means that if we want to continue to maintain the services that you've indicated are the most important to you ñ education, public safety, transportation, and caring for vulnerable populations -- then weíve got to look hard at both our revenues and our expenditures and determine where we can make your money work better for you.
That's going to involve some tough questions. Are there places where we can spend less and still maintain a high quality of services? Are there things we can do better to get more bang for the buck? Are there some things we're doing that we frankly shouldn't be doing? Are there things weíre not doing that we should be doing, regardless? I donít know all the answers yet -- but I know we can navigate through this successfully and I'm willing to have the discussion with my colleagues and all of you. Iím hoping the Council shares my commitment to having such a frank conversation. SOURCE: Mike Knapp
April 23, 2010
Montgomery Co. looks to curtail budget woes
ROCKVILLE, Md. -- It wasn't news to anyone in Montgomery County government that there was a big budget problem. The county's been wrestling with hundreds of millions of dollars in shortfalls all year. But this month, the county got hit with a surprise shortfall of $168 million that quickly ballooned to nearly $200 million. How did that happen? Council member Mark Elrich offered a short and sweet explanation during a meeting with County Executive Isiah Leggett.
"I think it's important for people to realize that essentially, you change the numbers when the check comes in from the state, and it's not what the state told you the check was going to be," Elrich said.
That's a result of state income tax revenues that have dropped all year long. Leggett said no one could have predicted just how big a bite the revenue shortfalls would take out of the county's budget.
"Had I walked over here (before the council) a few months ago, and said to you, 'I wanted to cut the budget across the line,' you'd have said 'What are you smoking?'"
So what was the solution? Leggett suggests the county "liquidate encumbrances" and in very simple terms, it means taking a look at county contracts and cutting where possible. He thinks the county can save up to $35 million that way. SOURCE: WTOP
"I think it's important for people to realize that essentially, you change the numbers when the check comes in from the state, and it's not what the state told you the check was going to be," Elrich said.
That's a result of state income tax revenues that have dropped all year long. Leggett said no one could have predicted just how big a bite the revenue shortfalls would take out of the county's budget.
"Had I walked over here (before the council) a few months ago, and said to you, 'I wanted to cut the budget across the line,' you'd have said 'What are you smoking?'"
So what was the solution? Leggett suggests the county "liquidate encumbrances" and in very simple terms, it means taking a look at county contracts and cutting where possible. He thinks the county can save up to $35 million that way. SOURCE: WTOP
April 21, 2010
Some county employees to be offered $35,000 to retire early
Some Montgomery County government employees will be offered $35,000 to retire early — a plan that officials say will save the county money if those positions are not refilled within three years. Just how much is not yet known because it is still unclear how many employees would take advantage of such a program. However, a document presented by the Office of Legislative Oversight on Monday shows that the proposal would save the county money — correcting an objection to last year's proposal, which OLO found would have cost the county money over time.
County Executive Isiah Leggett (D) proposed the retirement incentive to help reduce the need for layoffs in his fiscal 2011 budget proposal. He is calling for as many as 232 layoffs. During a council committee meeting Monday, council Vice President Valerie Ervin (D-Dist. 5) of Silver Spring asked what would be done to ensure that employees were not rehired within three years — a move that would negate budget savings. SOURCE: Gazette
County Executive Isiah Leggett (D) proposed the retirement incentive to help reduce the need for layoffs in his fiscal 2011 budget proposal. He is calling for as many as 232 layoffs. During a council committee meeting Monday, council Vice President Valerie Ervin (D-Dist. 5) of Silver Spring asked what would be done to ensure that employees were not rehired within three years — a move that would negate budget savings. SOURCE: Gazette
April 20, 2010
Maryland's job growth soars in March
Maryland's diverse economy, highly educated work force and financial stability are key factors behind the state posting the nation's largest job gain in March, Christian Johansson, secretary of the Maryland Department of Business and Economic Development, said Monday. The state added 35,800 jobs last month, according to federal figures. It was the largest one-month gain in Maryland since 1970 and the second greatest since 1939, Johansson said. The upswing reversed a 19-month negative trend.
"While one record-setting month does not constitute a trend, we remain optimistic that Maryland is beginning to rebound from the recession," Johansson said.
Industries across the board showed gains last month, even in sectors that have declined significantly over the past year, such as construction and manufacturing. The only sector that declined was real estate. Among the state's wins this month is French energy company EDF International's selection of Chevy Chase for its new North American headquarters. EDF signed a 10-year lease for 16,000 square feet at 5404 Wisconsin Ave. and will have about 25 employees there. The company is moving from Washington, D.C. SOURCE: Gazette
"While one record-setting month does not constitute a trend, we remain optimistic that Maryland is beginning to rebound from the recession," Johansson said.
Industries across the board showed gains last month, even in sectors that have declined significantly over the past year, such as construction and manufacturing. The only sector that declined was real estate. Among the state's wins this month is French energy company EDF International's selection of Chevy Chase for its new North American headquarters. EDF signed a 10-year lease for 16,000 square feet at 5404 Wisconsin Ave. and will have about 25 employees there. The company is moving from Washington, D.C. SOURCE: Gazette
April 18, 2010
April 16, 2010
Montgomery County loses $4.6B in taxable revenue, leaving budget gap at almost $1B
Millionaires fleeing state tax cause 82 percent of income drop
Montgomery County, Maryland's richest county, is facing a budget shortfall of nearly $1 billion as high-income residents flee the state's millionaires tax. Budget officials told the County Council on Tuesday that Montgomery must once again write down its projected income tax revenues, this time by $44 million for this fiscal year and $100 million for next fiscal year, which starts in July. Those write-downs come up on top of a $24 million income tax reduction disclosed last week for the current fiscal year, and are in addition to a nearly $800 million budget gap projected for next fiscal year.
The budget holes have threatened the county's AAA bond rating and prompted County Executive Ike Leggett to propose raising energy taxes by 63.7 percent, eliminating 18 bus routes and closing a public library in Noyes. A weak economy that ate away at capital gains and slowed the growth of small businesses can account for much of the county's fiscal woes, but county officials said the state compounded the problem by raising taxes for millionaires to 6.25 percent from 5.5 percent in 2008.
"Their timing couldn't have been worse," said Councilman Mike Knapp, D-Germantown, who said the millionaires tax has had a "devastating" effect on the county's budget. "Talk about cutting yourself off at the knees."
A "major factor" for the county's budget woes is the loss of its millionaire taxpayers, according to county economist David Platt.
Montgomery lost $4.6 billion in taxable income from tax years 2007 to 2008. More than 82 percent of that drop comes from taxpayers with incomes of $1 million or more, county records show. County data show that 216 millionaires who filed taxes for 2007 did not file with the state for 2008, compared with an average of 119 in previous years. While some of those not filing may have died or decided not to file a tax return, county officials said there is plenty of anecdotal evidence that Maryland's millionaires moved to more tax-friendly states.
"It's pretty clear that people did take their income someplace else," said Tim Firestine, chief administrative officer, noting that the loss of just a handful of millionaires has a disproportionate effect on the county's revenues.
Worse yet, Knapp said, was the likelihood that many millionaires who left won't come back when the tax expires at the end of the year, leaving the county's tax base smaller.
"Even if the economy gets better, we're going to have less money," Knapp said.
The millionaires tax may become a campaign talking point. Former Republican Gov. Bob Ehrlich already has criticized Gov. Martin O'Malley, a Democrat, for his strong support of the tax.
Also in Montgomery » The County Council gave preliminary approval to a revised "Science City" plan that supporters hope will make west Gaithersburg an epicenter of the life-sciences industry. Council members voted 8-1 on a straw vote, with Councilman Marc Elrich opposed, for a plan that scales back the county planning commission's proposal to 17.5 million square feet of development from 20 million. The plan also includes new safeguards against traffic congestion.
» A former County Council aide who sued the county for $5 million for allegedly violating an anti-discrimination law she helped write has dropped her lawsuit. Dr. Dana Beyer had charged in court records that the county discriminated against her because she is a transgender individual.
SOURCE: Washington Examiner
Montgomery County, Maryland's richest county, is facing a budget shortfall of nearly $1 billion as high-income residents flee the state's millionaires tax. Budget officials told the County Council on Tuesday that Montgomery must once again write down its projected income tax revenues, this time by $44 million for this fiscal year and $100 million for next fiscal year, which starts in July. Those write-downs come up on top of a $24 million income tax reduction disclosed last week for the current fiscal year, and are in addition to a nearly $800 million budget gap projected for next fiscal year.
The budget holes have threatened the county's AAA bond rating and prompted County Executive Ike Leggett to propose raising energy taxes by 63.7 percent, eliminating 18 bus routes and closing a public library in Noyes. A weak economy that ate away at capital gains and slowed the growth of small businesses can account for much of the county's fiscal woes, but county officials said the state compounded the problem by raising taxes for millionaires to 6.25 percent from 5.5 percent in 2008.
"Their timing couldn't have been worse," said Councilman Mike Knapp, D-Germantown, who said the millionaires tax has had a "devastating" effect on the county's budget. "Talk about cutting yourself off at the knees."
A "major factor" for the county's budget woes is the loss of its millionaire taxpayers, according to county economist David Platt.
Montgomery lost $4.6 billion in taxable income from tax years 2007 to 2008. More than 82 percent of that drop comes from taxpayers with incomes of $1 million or more, county records show. County data show that 216 millionaires who filed taxes for 2007 did not file with the state for 2008, compared with an average of 119 in previous years. While some of those not filing may have died or decided not to file a tax return, county officials said there is plenty of anecdotal evidence that Maryland's millionaires moved to more tax-friendly states.
"It's pretty clear that people did take their income someplace else," said Tim Firestine, chief administrative officer, noting that the loss of just a handful of millionaires has a disproportionate effect on the county's revenues.
Worse yet, Knapp said, was the likelihood that many millionaires who left won't come back when the tax expires at the end of the year, leaving the county's tax base smaller.
"Even if the economy gets better, we're going to have less money," Knapp said.
The millionaires tax may become a campaign talking point. Former Republican Gov. Bob Ehrlich already has criticized Gov. Martin O'Malley, a Democrat, for his strong support of the tax.
Also in Montgomery » The County Council gave preliminary approval to a revised "Science City" plan that supporters hope will make west Gaithersburg an epicenter of the life-sciences industry. Council members voted 8-1 on a straw vote, with Councilman Marc Elrich opposed, for a plan that scales back the county planning commission's proposal to 17.5 million square feet of development from 20 million. The plan also includes new safeguards against traffic congestion.
» A former County Council aide who sued the county for $5 million for allegedly violating an anti-discrimination law she helped write has dropped her lawsuit. Dr. Dana Beyer had charged in court records that the county discriminated against her because she is a transgender individual.
SOURCE: Washington Examiner
April 15, 2010
Foreclosures up in county; tax credit nears deadline
The number of foreclosures rose in Frederick County in March, up 56 percent from February and up 82 percent from a year ago. The latest figures, 344 foreclosures in the county, come from RealtyTrac, a California-based firm that monitors foreclosures nationwide. The company said there were 445 foreclosures in Montgomery County in March, up 34 percent from February, and 212 foreclosures in Washington County, up 95 percent from February.
The reason for the increase is because of a combination of adjustable rate mortgages, signed in 2004, 2005 and 2006, now resetting to higher permanent interest rates, said Patrick F. McLister, a Frederick lawyer. Added to that is the loss of employment income or one or both spouses and tapped personal savings accounts, he said. McLister and his law office partner, Todd Salisbury, are legal counsel to the Frederick County Association of Realtors.
Carlton Boujai, treasurer of the Maryland Association of Realtors, said the continuing number of foreclosures is the major obstacle of a full recovery for the real estate industry. The lower price for most foreclosures has brought out buyers, though, Boujai said, especially in the $250,000 or less range. Boujai, an agent with Exit Realty Prosperity Group in Frederick and a former president of the local Realtors organization, said it has brought many "on-the-fence" buyers into the purchase of a home. The federal tax credit program, offering $8,000 for first-time buyers and $6,500 for other eligible buyers, has not been as large a factor in the market as expected, Boujai said. SOURCE: Frederick News-Post
The reason for the increase is because of a combination of adjustable rate mortgages, signed in 2004, 2005 and 2006, now resetting to higher permanent interest rates, said Patrick F. McLister, a Frederick lawyer. Added to that is the loss of employment income or one or both spouses and tapped personal savings accounts, he said. McLister and his law office partner, Todd Salisbury, are legal counsel to the Frederick County Association of Realtors.
Carlton Boujai, treasurer of the Maryland Association of Realtors, said the continuing number of foreclosures is the major obstacle of a full recovery for the real estate industry. The lower price for most foreclosures has brought out buyers, though, Boujai said, especially in the $250,000 or less range. Boujai, an agent with Exit Realty Prosperity Group in Frederick and a former president of the local Realtors organization, said it has brought many "on-the-fence" buyers into the purchase of a home. The federal tax credit program, offering $8,000 for first-time buyers and $6,500 for other eligible buyers, has not been as large a factor in the market as expected, Boujai said. SOURCE: Frederick News-Post
Considering economy, county fared well in 2010 session, legislators say
Montgomery County emerged from the 2010 General Assembly largely unscathed, lawmakers said Tuesday morning, moments after the midnight end of the session.
"This is not a year where you're going to have big slam-bang victories," House Majority Leader Kumar P. Barve said. "This is a year where you're going to protect your position and build for the future, and I think we did that."
Lawmakers started the 90-day session wrestling with a dire fiscal situation as the lingering recession depleted sources of state revenue.
"It's been a tough year to have happy things happen," said Melanie Wenger, director of the county's Office of Intergovernmental Relations.
And while there was pain enough to go around, Montgomery was able to relieve some of it through increases in state aid. The state's fiscal 2011 budget will send the county a 10.4 percent increase in aid, or about $72 million. That jump is the result of a fall in taxable income and a drop in real estate values, said Sen. Richard S. Madaleno Jr., a member of the Budget and Taxation Committee.
"People in Montgomery County haven't suddenly become poor, but if you were making $1.5 million two years ago and $800,000 this year, you're not standing in a bread line but you're paying a lot less in income tax," said Madaleno (D-Dist. 18) of Kensington.
One of the biggest issues for Montgomery lawmakers was the maintenance-of-effort penalty that the state Board of Education imposed on the county. State law requires that county school spending, on a per-pupil basis, at least equal the previous year's spending. The recession forced the county to fall below that level this year, prompting the penalty. The legislature overturned that penalty, in legislation Gov. Martin O'Malley (D) signed Tuesday.
"We got the abatement for the fine on maintenance of effort, and that was a big victory. The maintenance-of-effort law that we wrote for the future is one that will protect Montgomery County and other jurisdictions," said Barve (D-Dist. 17) of Gaithersburg. SOURCE: Gazette
"This is not a year where you're going to have big slam-bang victories," House Majority Leader Kumar P. Barve said. "This is a year where you're going to protect your position and build for the future, and I think we did that."
Lawmakers started the 90-day session wrestling with a dire fiscal situation as the lingering recession depleted sources of state revenue.
"It's been a tough year to have happy things happen," said Melanie Wenger, director of the county's Office of Intergovernmental Relations.
And while there was pain enough to go around, Montgomery was able to relieve some of it through increases in state aid. The state's fiscal 2011 budget will send the county a 10.4 percent increase in aid, or about $72 million. That jump is the result of a fall in taxable income and a drop in real estate values, said Sen. Richard S. Madaleno Jr., a member of the Budget and Taxation Committee.
"People in Montgomery County haven't suddenly become poor, but if you were making $1.5 million two years ago and $800,000 this year, you're not standing in a bread line but you're paying a lot less in income tax," said Madaleno (D-Dist. 18) of Kensington.
One of the biggest issues for Montgomery lawmakers was the maintenance-of-effort penalty that the state Board of Education imposed on the county. State law requires that county school spending, on a per-pupil basis, at least equal the previous year's spending. The recession forced the county to fall below that level this year, prompting the penalty. The legislature overturned that penalty, in legislation Gov. Martin O'Malley (D) signed Tuesday.
"We got the abatement for the fine on maintenance of effort, and that was a big victory. The maintenance-of-effort law that we wrote for the future is one that will protect Montgomery County and other jurisdictions," said Barve (D-Dist. 17) of Gaithersburg. SOURCE: Gazette
April 14, 2010
Rules on foreclosure in Md. toughened
ANNAPOLIS — Lawmakers toughened foreclosure rules in the waning hours of the 2010 legislative session, mandating new steps in the foreclosure process designed to keep Marylanders in their homes and paying off their loans. Homeowners will be able to request mediation sessions with the holders of their loans to give them the opportunity to work on modifications. The foreclosure mediation legislation was a high priority for Gov. Martin O’Malley in a year in which his agenda focused heavily on plugging holes left by the recession.
The mediation law will “protect homeownership by giving every family the ability to bring these faceless mortgage servicing giants to the table before a family can be thrown out of their home in a foreclosure action,” O’Malley said Tuesday morning before signing some 170 bills. Among the new laws signed by O’Malley, House Speaker Michael E. Busch and Senate President Thomas V. Mike Miller Jr., was the Maryland False Health Claims Act of 2010. It will allow the state or citizens to file suit to recover fraudulent claims made to Medicaid or other state health programs. The law allows for a civil penalty up to $10,000 and triple damages. SOURCE: Maryland Daily Record
The mediation law will “protect homeownership by giving every family the ability to bring these faceless mortgage servicing giants to the table before a family can be thrown out of their home in a foreclosure action,” O’Malley said Tuesday morning before signing some 170 bills. Among the new laws signed by O’Malley, House Speaker Michael E. Busch and Senate President Thomas V. Mike Miller Jr., was the Maryland False Health Claims Act of 2010. It will allow the state or citizens to file suit to recover fraudulent claims made to Medicaid or other state health programs. The law allows for a civil penalty up to $10,000 and triple damages. SOURCE: Maryland Daily Record
March 7, 2010
Regulators close Waterfield Bank in Germantown
CHARLOTTE, N.C. (AP) -- Regulators on Friday shuttered banks in Florida, Illinois, Maryland and Utah, boosting to 26 the number of bank failures in the U.S. so far this year following the 140 brought down in 2009 by mounting loan defaults and the recession.
The Federal Deposit Insurance Corp. took over Sun American Bank, based in Boca Raton, Fla., with $535.7 million in assets and $443.5 million in deposits. Also seized were Bank of Illinois of Normal, Ill., with $211.7 million in assets and $198.5 million in deposits; Waterfield Bank in Germantown, Md., with $155.6 million in assets and $156.4 million in deposits; and Centennial Bank in Ogden, Utah, with $215.2 million in assets and $205.1 million in deposits.
First-Citizens Bank & Trust Co., based in Raleigh, N.C., agreed to assume the assets and deposits of Sun American Bank and to share losses with the FDIC on $433 million of the failed bank's loans and other assets. It was First-Citizens' fourth acquisition of assets of a failed bank since last July; the others were First Regional Bank of Los Angeles, Venture Bank of Lacey, Wash., and Temecula Valley Bank of Temecula, Calif.
February 12, 2010
Mortgage foreclosures remain high in MC
Maryland's home mortgage foreclosure rate fell 22.7 percent last month from December, according to new figures from RealtyTrac of Irvine, Calif. However, the state's rate of one filing per 446 households was up 41.4 percent from January 2009. Maryland had the 13th highest rate in the nation last month, below the U.S. average of one filing per 409 households. The national average fell 9.7 percent in January from December. For the first time in more than a year, Prince George's County did not have the highest rate in the state. The county's rate of one filing per 285 households was second to Baltimore city's rate of one per 235.
SOURCE: Gazette
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