Chairman Kamenetz, members of the County Council, distinguished guests, County employees, and my fellow citizens; I am pleased to present Baltimore County’s proposed budget for Fiscal Year 2009. During the past 5 years, we have seen communities across our County experience an exciting community-driven renaissance. Built upon the values and traditions that have made Baltimore County great, this renaissance has brought renewed life to our historic community downtowns; new families to our older neighborhoods; and new businesses to once dormant local commercial locations. But as our renaissance enters its sixth year in Baltimore County, we are in the midst of a very difficult economic time. According to the International Monetary Fund the current economic malaise spans the globe. Our own nation’s economy is reeling from the effects of the subprime mortgage and credit crisis. More than 156,000 jobs have been lost nationwide just since the beginning of February. According to the Pew Research Center, 54 percent of middle class Americans (those earning between $40 – $100,000) believe they are worse off than they were 5 years ago and of those employed, one in four worry that they will be laid off or lose their job. 75 percent of our national economists believe that we are in a recession. In Maryland, Governor Martin O’Malley and the General Assembly just completed the very difficult task of extricating our State from a $1.7 billion dollar structural deficit that resulted from past approval of State spending that exceeded revenues generated by the Maryland economy. This deficit was further exacerbated by the $333 million March write down of revenues anticipated by the State for the balance of the current fiscal year. The State cuts to Baltimore County totaled more than $40 million, $23 million of which were cuts in education. In Baltimore County, we have a long history of responsible fiscal management; a tradition that has provided County government solid financial stability; competitive employee compensation, benefits, and job security; consistent delivery of important government services; aggressive promotion of economic opportunity and expansion; and an outstanding quality of life for the youngest to the oldest members of our County community. We have also been able to foster a renaissance of our older neighborhoods through new and renovated schools, new and expanded libraries, additional community and senior centers, and new and improved police and fire stations, community parks and playgrounds. The foundation of Baltimore County’s success and our high quality of life is our commitment to sound fiscal management, to making certain that County government does not spend more than we are taking in or more than County residents can afford to pay for County government. To ensure that we maintain our fiscal integrity, in 1990 the County Council established the Spending Affordability Committee that is charged with determining an affordable level of growth for County government in the next fiscal year. This committee of Council members and independent financial experts takes into account many factors including the anticipated rate of growth in the personal income of County residents. In the 17 years since this process began no County Executive has ever submitted a budget that exceeded the recommended limits on spending. I do not intend to violate this practice. This year’s spending affordability limit for growth in ongoing County general fund spending set by the committee is 4.56 percent. The former President of Notre Dame University, Theodore Hesburgh, once said, “My basic principle is that you don't make decisions because they are easy; you don't make them because they are cheap; you don't make them because they're popular; you make them because they're right.” I come to you today confident that the fiscal restraint, budget commitments, and County priorities reflected in this lean budget are the right choices for the people of Baltimore County during these challenging economic times. Baltimore County has always believed that the quality of our future depends on the quality of our education. That is why creating environments where young people can thrive and learn is one of the most important things that we can do as a community. Thanks to our unprecedented investment and the hard work of our teachers, we are seeing important results. Last year, 10 of our high schools were recognized by Newsweek as part of the top 5 percent of high schools in the nation, up from 8 the year before. And in their first ever ranking of America’s Best High Schools, US News and World Report included both Hereford High School and Eastern Technical High School among the nation’s elite. From our children’s first day of kindergarten to their last day of high school, the teachers and staff of Baltimore County Public Schools challenge students to achieve at the highest possible levels. The exemplary education that our students receive is preparing them to take their places as leaders in the 21st century. Congratulations to Dr. Joe Hairston, the Board of Education, principals, teachers, and staff for the difference you are making in the lives of future generations. Despite the pressures that we face both locally and nationally, Baltimore County continues to be the second largest job center in Maryland and the largest in the Baltimore region. We added 2,000 more jobs this past year, bringing the five-year total to more than 15,000. The quality of the County’s job base, and the diversity of our business sector, help reduce our dependence on the ebb and flow of any one industry, or any one business cycle. Located between Aberdeen and Fort Meade, Baltimore County is well positioned to benefit from the jobs coming to the army bases located there, and from the thousands of contract and subcontract opportunities that will follow these military installations. We are partnering with the State, Baltimore City and our sister counties to make the most of this unprecedented Base Realignment and Closure (BRAC) opportunity. According to the most recent estimates, Baltimore County stands to gain more than 5,000 new jobs as a result of BRAC by 2011, with salaries averaging $85,000 annually. Although we have had great success in education and business development, the foundation upon which everything government does is public safety. People will not choose to live, work, or shop in places where they do not feel safe. As a result, Baltimore County provides its Police and Fire Departments the training, equipment, and resources they need to deliver the exceptional service that our citizens have come to expect. We have more Police officers per capita than any other metropolitan County in the State. In 2007, violent crime in Baltimore County was down 5.9 percent from the prior year and total crime was down by 1.6 percent. Our clearance rates for serious crimes are among the highest in the nation. I congratulate Police Chief Jim Johnson, who has not missed a beat since taking over the department, and I congratulate the men and women of our police department for their outstanding service. The Baltimore County Fire Department also continues to adapt to a changing world and the changing needs of the people of our County, responding to demographic and technological changes, the growing need for emergency medical service, as well as the demands of the post-9/11 era. Baltimore County recently broke ground on a full-service career fire station in Parkton, where growth along the I-83 corridor has increased demand. In early 2009, the station should be operational, so 15 additional uniformed fire positions are included in this budget to provide a 24-hour operation. A federal Fire Act Grant helped us keep up with the times by purchasing interoperable radios for first responders – a vital asset in this era of regional emergency cooperation. Homeland Security funds also helped the County obtain a state-of-the-art Urban Search and Rescue vehicle, equipped for all types of complex tactical rescues; a decontamination unit; and a mobile command post that allows emergency responders access to a full range of technical assets at any location. In addition to the County’s career firefighters, the County’s 33 volunteer fire companies and 2 rehab units continue to play a vital role in Baltimore County’s Fire Service. Baltimore County is a model for joint career/volunteer fire service. Fire Chief John Hohman is on another assignment today, but I would still like to recognize Chief Hohman and County Volunteer Association President, Sue Coronos for the job they and our career and volunteer fire fighters do day in and day out for Baltimore County. Baltimore County is also proud of our continuing commitment to the protection and preservation of our environment. In 2005, we launched our Green Renaissance initiative to promote environmental stewardship designed to ensure that future generations will be able to enjoy our outstanding, great outdoors. Since 1974, Baltimore County has worked with private landowners to preserve 53,000 acres of rural land, 13,000 acres in just the last five years. Since 2005, we have planted more than 9,200 new trees to enhance our forests and tree cover, and have begun our Growing Home Campaign, which is an urban forestry education program that includes a $10 coupon incentive for citizens to plant trees in their own backyards. Working together, the people and businesses of Baltimore County have achieved impressive progress during the past five years. From Dundalk Avenue to Liberty Road, new businesses and new homeowners are moving into our historic neighborhoods and local business districts. We must continue to build upon this success, and the budget that I present is intended to do just that. This proposed budget has been adjusted for the impact of the State cuts to Baltimore County resulting from Maryland’s Budget Reconciliation Plan, and also stays within the spending affordability guidelines established by the County Council’s Spending Affordability Committee. Consistent with the recent 4 to 1 decision of Baltimore County’s Arbitration Panel, this budget includes no COLA’s but does include step and longevity increases for employees. This budget also includes funding to cover the inflationary cost of health insurance for education and all County employees. This budget will control government spending during this difficult time, and will avoid the necessity of any tax rate increases for County residents. For the 19th consecutive year, there will be no property tax rate increase, and for the 15th consecutive year we will not raise our income tax rate. This budget also maintains the County’s 4 percent cap on property tax assessments, which will result in $171 million in tax relief for County homeowners next year. Once again, this year’s budget will make education Baltimore County’s top priority. I am submitting a $749.5 million general fund appropriation request for our public school system, which exceeds maintenance of effort by $34.2 million. The public school system’s total budget of $1.35 billion is 52 percent of the County’s total operating budget. It also comprises 51 percent of the County’s FY 09 capital budget. When the new school year begins in the fall, projections show Baltimore County’s student population will decrease by 1,628 students. As we have done in the last two budgets, and are doing in this proposed budget, we will continue to fund 361 positions beyond those required based on student enrollment, at a cost of $17 million. There will be no net reduction in teachers or other staff despite this declining enrollment. In fact, this budget includes staffing for an additional 56 positions for the upcoming school year. Reduced class size and the ability to utilize differentiated staffing are extremely important to the success of our teachers and students alike. Baltimore County will be opening a brand new elementary school in the northeast area — Vincent Farm. Funding is included for 15 positions to open this new school in August. Vincent Farm will house 700 students, providing immediate relief to the elementary school overcrowding in the northeast area. This year’s budget also includes $425,000 in funding to add six additional Advancement Via Individual Determination (AVID) staff positions to expand this program to Eastern Tech, Western School of Technology, George Washington Carver, and Towson High Schools. These additional staff positions will also reduce the waiting lists at 3 schools that are currently part of the AVID program – Perry Hall, Milford Mill, and Randallstown High Schools. Ninety-eight percent of AVID seniors have applied to college. The AVID program is making a difference in our high schools, and I know that Superintendent Hairston is pleased. This is one of his very successful priorities. Based on AVID’s success, it is time to expand this program into our more challenging County middle schools to help students who might otherwise be overlooked. Participation in AVID improves attendance, increases participation in honors and Advanced Placement courses, and increases High School Assessment pass rates for which all middle school students must be prepared. With my proposed budget, AVID can be expanded into Southwestern Academy, Dundalk, Lansdowne, and Woodlawn Middle Schools. Although there is very little growth in the budget I am presenting today, it does include additional school funding for textbooks, supplies, and technology upgrades in our schools. Our teachers and students must have the materials they need to be successful. This year, Baltimore County’s proposed capital budget totals more than $230 million. Once again, our major commitment in County capital dollars will be to school renovation and construction. I am requesting more than $118 million in school construction funding. When combined with the $30.8 million allocated so far by the State, Baltimore County will dedicate more than $148 million toward school renovation and construction in FY 09. I would like to acknowledge the leadership of Delegate Adrienne Jones, House Speaker Pro Tem and Chair of the House Capital Budget Committee and Senator Ed Kasemeyer, Vice Chair of the Senate Budget and Taxation Committee, and the support of all our State senators and delegates who played a critical role in securing these funds for Baltimore County. I am pleased to report that we have completed the renovation of the County’s elementary schools, special schools and most of our middle schools. The remaining middle school renovations are currently underway. With the renovation of all our Middle Schools completed or underway, we now turn to our high schools. With this proposed budget, we will begin with our oldest high school – the George Washington Carver Center for the Arts and Technology here in Towson. Because of the high cost estimate to merely renovate Carver, the school system determined it makes no sense to proceed with renovations at this site. Instead, $35 million of County funds, combined with an anticipated $25 million from the State will be used toward construction of a new replacement high school on the Carver campus. Baltimore County agrees with the school system that this is both cost effective and educationally sound. This budget also contains significant funding for much needed maintenance in our County schools. $23.4 million has been included for countywide replacement of windows. In addition, approximately $3.9 million has been included for roof replacements at Joppa View, Arbutus, Riderwood, Kingsville, and Woodbridge Elementary Schools, Ridgely Middle, and the Western School of Technology. The Community College of Baltimore County is a model for community college systems throughout the nation. This budget requests $42.3 million in funding for CCBC this year. Included in this funding is a request for $585,000 to improve safety on CCBC campuses by hiring 8 additional public safety officers and upgrading campus call boxes. The Community College of Baltimore County plays an important role in every community of the County, and I thank Dr. Sandra Kurtinitis, President of CCBC, for her outstanding leadership, and the entire community college family for their significant contribution to our County. Although education is the highest priority in this proposed budget, public safety and the quality of life in our County neighborhoods have also received budgetary attention. The Baltimore County Public Library system is widely recognized as one of the finest in the nation. Its innovative programs and dedicated staff do an outstanding job in fulfilling their mission. In February, with the leadership and support of the Library Board of Trustees and the Baltimore County Library Foundation, we opened a unique new resource for the families of Baltimore County at the Rosedale Library, called Storyville. This child-sized townscape for birth to six year olds is visually exciting with age-appropriate literacy materials that promote early childhood learning and school readiness skills. Parents and other caretakers can interact with their children and can also take home books and other materials to support continued learning. Storyville is a true destination location on the east side of the County, but it is not readily accessible to the children of western Baltimore County. This proposed budget includes $1 million dollars for the planning of a second Storyville at the Woodlawn Library. Storyville is another key component of Baltimore County’s commitment to early childhood education. Our children must be prepared for school when they enter kindergarten, and Storyville helps do just that. I would like to thank our Library Director, Jim Fish, and his entire staff for all they do for the people of Baltimore County and especially for their dedication and commitment in bringing this innovative program to us. The University of Maryland Center for Environmental Studies just released its second annual Chesapeake Bay Report Card. Two of the three waterways in the State of Maryland that have improved water quality in 2007 over 2006 were here in Baltimore County. The Gunpowder and Middle Rivers went from a “D+” rating to a “B.” Baltimore County’s Agricultural Preservation program is one of the strongest in the State and we want to continue this success. Baltimore County is requesting a $2 million federal grant for agricultural preservation and this budget includes $2 million in County capital funds for this purpose. The Baltimore County Police Department is committed to serving our citizens with a diverse police force that reflects Baltimore County. That is why this budget includes $387,000 for a program to increase police minority recruitment in our cadet classes. This is a farsighted approach to meeting the needs of the County and to maintaining the confidence of the community in our Baltimore County police. While I am talking about the Police, this budget must take into account the results of the Police binding arbitration award. One of the components of that binding arbitration award is the required inclusion of an additional Step 6 for the Police. This arbitration decision directs me to include $4 million in this budget to pay for this additional police compensation. If the same percentage increase, as is represented by this new Step 6, were required for all County employees, it would cost $56 million which equates to 9-cent increase in the property tax rate. The binding arbitration award, however, is only applicable to the Police. I am bound by the arbitrator’s award. The County Council is not. The binding arbitration decision was rendered during the final stages of the County’s budget preparation process, and there was not sufficient time for me to identify the $4 million in cuts that will be necessary to fund the new step for police officers. To avoid exceeding the 4.56 percent spending affordability cap, I have included this $4 million increase in a contingency account. Should the Council decide to fund this pay increase, I want to assure the Council members that this administration will make the necessary cuts to fund this increased compensation ordered by the arbitrator. The people of Baltimore County understand the importance of living within their means. We all must do so. Otherwise we go into debt. If government does not live within its means, it creates a structural fiscal deficit. The budget that I propose today will not do that. We will continue to promote the long-term health and quality of life in Baltimore County without risking long-term harm as a result of current economic circumstances. In closing, I would like to paraphrase President Abraham Lincoln: It is not merely for today, but for all time to come that we should perpetuate for our children's children this great country (and I would substitute “county”), which we have enjoyed all our lives. Thank you very much. | 
Courthouse 