Maryland Governor, Board of Public Works Set Tax Rate; Hold the Line on Property Taxes

O’Malley’s Budget Supports Record Investments in Public Education; Fully Funds Open Space

ANNAPOLIS (April 30, 2007) - Maryland Governor Martin O’Malley and the Board of Public Works set the tax rate for the State of Maryland today at the Board of Public Works meeting. Governor O’Malley and the board held the property tax rate steady at 11.2 cents per $100 of assessed value, in accordance with the recommendation of the Commission on State Debt.

“Working together this year and without raising taxes, the State of Maryland has made historic investments in public education, preserving our natural environment, and life saving stem cell research,” said Governor Martin O’Malley. “Over the next few months, I look forward to working with our state agencies to make our state government more accountable and more efficient, and keeping the property tax affordable for the working families of our State.”

During his first legislation session, Governor O’Malley’s budget for the State of Maryland grew by only 2.1% - less than the rate of inflation, and well below the spending affordability guidelines for the state, after year’s of record spending. At the same time, Governor O’Malley’s budget made critical investments in public education and preserving our environment.

To improve education, this year’s budget provided:

* $567 million in new money - the largest increase ever - to fully-fund the Thornton education plan,
* $400 for school construction to get children out of trailers and crumbling classrooms,
* Funding to freeze college tuition and provide opportunity for working families, and
* An 18% increase in funding for community colleges.

The environment was also a key priority this year, including:

* $177 million to fully funding Program Open Space and protect our green space
* $10 million for soil conservation services, and
* $9 million for cover crop programs, the largest amount ever.

The Board of Public Works is required to set the State property tax rate based on the recommendation of the Commission on State Debt. The Commission was created as an advisory group to BPW to recommend the property tax rate on an annual basis so that funds are sufficient to meet debt service requirements on outstanding general obligation bonds during the next fiscal year. In fiscal year 2008, $29,349,121 was appropriated from the general fund to support debt service with the assumption that the current tax rate of 11.2 cents per $100 would not change.

The Commission is chaired by Treasurer and the other members are: Paul Merritt (appointed in 1981 by Governor Hughes), Comptroller Franchot; Secretary Foster, Secretary Porcari and John Sullivan, Director of Assessments & Taxation.

Source: Maryland Governor

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