For Immediate Release: Wednesday, May 19, 2010
ROCKVILLE, Md., May 19, 2010—The Montgomery County Council today approved several key measures that allow it to preserve essential services while addressing the austere budget pressures created by the ongoing national recession. Today’s actions, including the unanimous decision to reduce the Montgomery County Public Schools budget by $24.4 million, move the Council closer toward an agreement on the 2011 Fiscal Year Operating Budget. The Council is now scheduled to reach a tentative agreement on the budget in a session that begins at 1:30 p.m. on Thursday, May 20. The Council is scheduled to formally adopt the budget on Thursday, May 27. The Council will meet tomorrow on the budget agreement in the Third Floor Hearing Room of the Council Office Building at 100 Maryland Ave. in Rockville. The meeting will be televised live by County Cable Montgomery (CCM—Cable Channel 6 on Comcast and RCN, Channel 30 on Verizon) and also will be available via streaming video through the County Web site at www.montgomerycountymd.gov. Today, the Council voted to create an Emergency Medical Services Transport Fee, also known as an ambulance fee; approved increases in the County’s energy tax and tax on cell phone lines; and became the nation’s first county to create a tax on major emitters of carbon dioxide. “We achieved a great deal today in our steps toward a more austere budget in the future,” said Council President Nancy Floreen. “Our decisions bolster our reserve, allow us to preserve essential services, protect our children’s classroom experience and moderate the impacts of the tax increases.” The Council today voted 5-4 to create the Emergency Medical Services Transport Fee proposed by County Executive Isiah Leggett. In addition to Council President Floreen, Councilmembers Marc Elrich, Mike Knapp, George Leventhal and Duchy Trachtenberg voted in favor of Bill 13-10. Councilmembers Phil Andrews, Roger Berliner, Valerie Ervin and Nancy Navarro voted against it. Bill 13-10 authorizes the County to charge those transported by County ambulances between $300 and $800, depending upon the level of care needed. They also will be charged $8.50 per mile of transport. For most residents with health insurance, their health insurance companies will be billed for the fees. Residents without health insurance will be able to apply for a waiver of the fees. It is estimated the fees could raise approximately $12.9 million annually for the County. Fees could be charged as early as July 1. The Council also approved Expedited Bill 29-10, which will make Montgomery County the first County in the nation to create a carbon emissions tax on major emitters of carbon dioxide. The carbon tax, whose chief sponsor is Councilmember Roger Berliner, will require a major emitter of carbon to pay an excise tax of $5 per ton of carbon emitted. Currently, the only impacted emitter would be the Mirant Corporation power plant in Dickerson. The bill passed by an 8-1 margin, with Councilmembers Andrews, Berliner, Elrich, Ervin, Floreen, Leventhal, Navarro and Trachtenberg voting in favor. Councilmember Knapp voted in opposition. “This is an important measure for the people of Montgomery County,” said Councilmember Berliner. “We have taken an action that says those who pollute our environment should pick up after themselves. This tax will fund our County programs, such as the Home Energy Loan Program, that are investments in cleaning up our air.” The Council made some changes before approving Bill 15-10, which reflects the County Executive’s proposal to increase the County tax on energy use, including on home heating oil, electric and natural gas. The Executive had proposed doubling the energy tax, but the Council reduced the increase to 85 percent. The measure will split the increase between residential and commercial users. The average County household will pay $13 more per month than it currently does, depending upon the type of energy primarily used in the home and the amount of energy used. Bill 15-10 was approved 8-1, with Councilmembers Berliner, Elrich, Ervin, Floreen, Knapp, Leventhal, Navarro and Trachtenberg voting in favor. Councilmember Andrews voted in opposition. The bill will sunset after two years. The Council also approved an increase to the current tax on cell phone lines from $2 to $3.50 per month. The resolution was approved 7-2, with Councilmembers Berliner, Elrich, Ervin, Floreen, Leventhal, Navarro and Trachtenberg voting in favor. Councilmembers Andrews and Knapp voted in opposition The Council voted unanimously to reduce the tax-supported MCPS budget by $24.4 million, with $4.7 million to come by reducing technology modernization and relocatable projects in the Capital Improvements Program and $19.7 million coming from additional operating expenses that will be identified by the school system. The $24.4 million reduction represents 1.3 percent of school budget recommended by the Executive. Even with the reduction, MCPS budget represents approximately 57 percent of total County operating costs, up from 55 percent this year and over the last decade. “The Council is committed to supporting the top-notch educational opportunities that our children receive at MCPS,” said Council Vice President Ervin, who chairs the Council’s Education Committee and formerly served on the County Board of Education. “However, we must also protect the critical services that our children rely on when they are not in the classroom. Many children and their families rely on Montgomery County for health care, housing assistance and transportation. This demand has only increased with the current economic crisis.” # # # #
Release ID: 10-094
Media Contact: Neil Greenberger 240-777-7939, Delphine Harriston 240-777-7931