Chairman Bartenfelder, members of the County Council, distinguished guests, and my fellow citizens, I am honored to join you today to present Baltimore County's proposed operating and capital budgets for Fiscal Year 2010. As everyone is aware, Baltimore County and our entire nation are facing the most significant economic challenge since the Great Depression. In recent months, we have watched as many of the world's foremost financial institutions have teetered on the brink or have fallen into bankruptcy. Last month, the Dow Jones industrial index fell below 7,000 for the first time since 1997. Unemployment nationwide is approaching 9 percent and is rising in virtually every metropolitan area in America. We cannot ignore the impact of the global recession in our communities. It is not ignored by parents who stay up late into the night wondering how they will pay for college tuition, by baby boomers who watch their pension funds plummet just as they are planning to retire, by the small business owners who strive to preserve jobs of longtime employees while wondering how to make payroll with dwindling revenues, or by county social workers who see an unprecedented demand for their services and resources, many by people who have never asked before. Despite the difficulties of the nation's economy, Maryland is one of only seven states to retain its Triple A bond rating. However, Maryland has not escaped the effects of the current recession. State revenues have plummeted and Maryland's revenue projections for next year are grim. Significant cuts have been made to the State's 2010 budget, reducing state funding of local governments and boards of education by millions of dollars. Baltimore County has lost almost $37 million in State funding for next year. While no worker, family, business, or government is unaffected by the slowdown in our national economy, and even in the face of State cuts, Baltimore County has positioned itself to weather this downturn. Thanks to our tradition of fiscal responsibility and our accurately forecasting the decline in title, transfer, and recordation taxes, we are in a strong position to face the ongoing economic challenges. Our fiscal policy is founded on the basic principle of effective budget management. We have budgeted with an eye on changes in the economy, so that County programs and services operate on a reliable level of funding. County government, and the people of Baltimore County, have been well-served by County Administrative Officer Fred Homan, Budget Director Keith Dorsey, and their dedicated, professional staff, who have supported the County's progress, and at the same time have protected its financial base. When real estate was doing well, better than many at the time thought could be sustained, and transfer taxes and recordation costs were pouring in, Baltimore County invested in one-time capital projects such as school renovations and construction, road and bridge repairs and replacements, new and expanded libraries, and other capital construction. Such investments of County revenues not only contribute to the County's quality of life, but also help maintain an affordable level of debt service costs in our budgetary forecasts. Such investments, particularly when in the form of school renovations, further help the operating budget and our long-term planning by significantly lowering our energy costs. And the County's focus on investments has extended to technology improvements designed to increase the productivity of our workforce. Whether it be an investment in the Geographic Information System, Interactive Voice Response, Document Imaging or a Route Optimizer, we invest in our workforce so that we can focus on our public's priorities. That is why we have been able to grow our workforce in Education and Public Safety while we actually have 7 percent fewer positions in General Government than we had more than 20 years ago. This approach, investing in our future while always focusing on the bottom line, has allowed us to accomplish much while maintaining stable tax rates. Thanks to our commitment to this policy of strong financial management, Baltimore County has avoided the layoffs, furloughs, hiring freezes, and budget deficits that currently plague many governments. In our 2010 Budget, there will be no change in our property tax and income tax rates that have not been increased in 21 years and 17 years respectively, and we will maintain our 4 percent cap on property tax assessments that will provide Baltimore County homeowners $193 million in property tax relief in FY2010. Baltimore County's fiscal approach was recently vindicated when all three rating agencies renewed our Triple A bond rating. We are one of only 22 counties nationwide to earn a Triple Triple A bond rating. What really distinguishes the steps that we have taken in Baltimore County to preserve the county's fiscal integrity is that we have taken these important steps working together with our employees. Last year, our employee bargaining units took into account the deteriorating economy and State cuts to local governments in their negotiations and accepted contracts without cost of living increases. County labor groups ratified those contracts, not an easy thing to do perhaps, but it was action that recognized the realities of the slowing economy. Two years ago, Baltimore County's labor organizations worked with the County to adjust the County's pension, as well as post retirement and current employee health benefits. Although these negotiations were difficult, they were also necessary to ensure a continuation of attractive and secure pension and health benefits at a cost that the County could afford. The agreements of Baltimore County labor, our wise use of transfer taxes for one time capital quality of life projects, our investment in technology and its impact on the staffing of County government, our negotiated adjustments to pension, post retirement and current health benefits, and our careful management of debt service, make it possible for the budget I propose for next year to include a modest cost of living increase, effective on January 1, 2010 of 2 percent for board of education and general government employees, 2.38 percent for principals and assistant principals, and 3.5 percent for teachers. Additional funds have been included to support the Board of Education's restructuring that will provide principals and assistant principals with their own separate pay scale. All employees eligible for step and longevity increases will receive those increases. With this proposed budget, education continues to be a top priority in Baltimore County. We recognize that a high quality public education has never been more important than it is now. Our FY2010 budget contains a $703.8 million general fund appropriation request for Baltimore County Public Schools. This figure ensures that we will not only maintain, but will actually exceed Baltimore County's maintenance of effort by $30.5 million. This year's school budget, excluding food services, is $1.31 billion, which accounts for 51% of the County's Operating budget. In the upcoming school year, the school system projects that Baltimore County's enrollment will increase by 512 students. In order to ensure that we can maintain our current class size, my proposed budget funds an additional 46 teaching positions for the 2009-2010 school year. We will also fund an additional 2 positions for a principal and secretary, and $730,000 for start up costs for the new West Towson elementary school. One of the Baltimore County Public Schools' most effective programs has been the Advancement Via Individual Determination (AVID) program. This budget includes $126,000 in funding to expand AVID services within schools presently being served. AVID is helping Baltimore County students who might otherwise be overlooked, prepare for higher education. Students and teachers must have the materials that are necessary to deliver the current curriculum. That is why this budget increases the schools' instructional materials allocation by 2 percent. And knowing how important science is to the future of our children and our workforce, we accelerated the school system's request to purchase microscopes for 69 elementary schools over three years, and are funding the entire request this year. As a result, students in every elementary school in Baltimore County will have access to a full inventory of state-of-the-art microscopes. This year's budget also includes full funding for one of the Board of Education and Superintendent Dr. Joe Hairston's top priorities, the Virtual Classroom at Chesapeake High School. When complete, the Virtual Classroom will enable students to learn via state of the art technology, including gaming simulation. This program will be particularly important to the students in the Science, Technology, Engineering, and Math (or STEM) program. Since 2003, Baltimore County has secured more than $178 million dollars from the State of Maryland for school renovation and construction, and thanks to Governor Martin O'Malley and the General Assembly it looks like we will receive another $25.4 million in the coming year. In the last six years, the County Council has approved more than $800 million in additional county appropriations, bringing Baltimore County's funding for school renovation and construction since 2003 to just under $1 billion. Next year's capital budget for our schools is $196.7 million and represents 26 percent of Baltimore County's total capital budget of $756 million. As a result of our capital commitment to education, we have been able to build Woodholme Elementary, Windsor Mill Middle, and our newest elementary school, Vincent Farms, featuring state-of-the art technology and LEED certification. We are preparing to break ground on another new elementary school in West Towson, as well as a new George Washington Carver Center for the Arts and Technology to replace the existing facility that is more than 60 years old. Baltimore County has completed its systemic renovations of our elementary, special, and middle schools, and is now turning attention to our high schools. We are investing in our future; we are investing in our children. And that investment is paying dividends. Just this past spring 10 of Baltimore County's high schools were recognized by Newsweek Magazine as being among the finest in the nation-that's 30 percent of Baltimore County's high schools. Congratulations to Superintendent, Dr. Joe Hairston and our school system. Fourteen county schools have also been chosen as Maryland Blue Ribbon Schools, an honor that recognizes schools among the top ten percent in the State or schools that have demonstrated significant, sustained improvement in academic achievement. Although schools are the heart of a community, libraries are its soul. Just a few weeks ago, we opened the Perry Hall Library, Baltimore County's first completely new library in 21 years. Later this summer, we will break ground on a similar library for Arbutus. In October, we will break ground on a 1,500 square foot library addition to the Cockeysville branch. I know Jim Fish, our Library Director, and his staff couldn't be more pleased. And the Community College of Baltimore County recently broke ground on a brand new 75,000 square foot library on its Catonsville campus. In crafting our County's budget, we must never forget that a fundamental responsibility of local government must be public safety, the foundation critical to every community's quality of life. That is why Baltimore County has built new police and fire stations, added public safety personnel, and made significant upgrades in the technology used to support our first responders. Baltimore County crime rates are at historic lows and we are delivering expanded fire and EMS services throughout the County. With seed money in this budget from the U.S. Department of Justice, we will launch a new Cyber Crime Unit to address identity theft, child pornography, and theft committed by the use of computer technology. I congratulate Police Chief Jim Johnson and Fire Chief John Hohman, and the members of their departments and our volunteer fire fighters, for the outstanding work they do and results they achieve. It is on this foundation of public safety that Baltimore County has built its renaissance. In Essex-Middle River, a new community of homes is rising at Renaissance Square, where there was once only squalor and decay. In Dundalk, Ryan Homes is about to construct a model for a new community at Yorkway, where police formerly responded to thousands of crime calls a year. In Catonsville, families are preparing for Restaurant Week in buildings that once stood vacant and that now offer multiple choices for fine dining. In Randallstown, people of all ages are preparing to play, perform, and learn in the largest community center ever built in Baltimore County. In Parkville, people are safer because there is a new police station in their neighborhood. In Parkton, families sleep a little easier, secure in the knowledge that a new fire station will open this June. In Hunt Valley, people will come from all around the state to visit the Baltimore County Center for Maryland Agriculture that will open in 2010. And this morning, seniors in every community are utilizing fitness studios as part of their daily routines. These projects are making a significant positive impact. But they did not just simply happen. They were conceived, designed, and constructed as a result of careful planning and effective budget management. I thank the members of the County Council for the role that they have played over the years in maintaining Baltimore County's tradition of fiscal discipline and smart spending.
As we work to prepare our County for the future, it is imperative that we not forget the needs of people today. The current economic recession is having a profound effect on many in Baltimore County. As jobs disappear, savings evaporate, and budgets tighten, people across the County are facing some of the most difficult times of their lives. Never has Baltimore County's social safety net been more important. This budget provides funding to programs and initiatives that are making a real difference in these tough times. Almost $175,000 has been included to provide our Department of Social Services with eight temporary clerical staff positions for the Family Investment Program. This program is a partnership with the State that provides families with temporary, emergency financial support, including food stamps and medical assistance. This budget also includes support for another of the Department of Social Services' critical programs, the emergency fund. This fund provides Baltimore County families with access to money that can be used once a year in the event of a crisis, such as an eviction or a utility turn off. Due to the increased demand, Baltimore County has increased funding for this program by $30,000 to $600,000 for FY2010. I thank Tim Griffith and everyone in the Department of Social Services for the important work they are doing in these stressful economic times. Every year, the Maryland Food Bank provides 14 million pounds of food to those in need. Right now, they are experiencing unprecedented demand, with many families requesting assistance for the first time. That is why this FY2010 budget includes a $500,000 grant to the Maryland Food Bank to help them with the unprecedented demands being made of them. This recession is affecting people in every community of Baltimore County, but it has been particularly difficult for many of our homeowners. Due to the number of households facing foreclosure, Baltimore County is appropriating $400,000 to support foreclosure assistance programs. This funding will staff the Eastside Community Development Corporation and the We Are Family Community Development Corporation with qualified loss-mitigation housing counselors and administrative support personnel needed to serve 40 to 50 households a week. As we all face the current challenges of this economy, it is important that we continue to support the least fortunate among us. Thanks to President Barack Obama and the U.S. Congress, the American Reinvestment and Recovery Act is providing communities across America with critical resources to help those who need it most. In Baltimore County, our Office of Community Conservation is receiving $1.1 million from this reinvestment package to support the YWCA's construction of 13 affordable housing units for chronically homeless women. Baltimore County's budget reflects today's economic realities, is structured to meet our County's priorities, and is within the spending affordability limits set by the Baltimore County Council. The proposed FY2010 general fund operating budget, including one-time expenditures, is $1.67 billion and is $44.8 million or 2.6 percent less than the '09 budget approved by the Council last year. The decisions that we had to make about how to invest our limited resources this year were not easy. John Quincy Adams once said, "Patience and perseverance have a magic effect before which difficulties disappear and obstacles vanish." I am confident that this is a budget that will prepare us to persevere in spite of the fiscal reality of 2010. And, thanks to our history of prudent fiscal management, it is also a budget that preserves opportunity without compromising our values or sacrificing our priorities. It is a budget that has no pork, but it is a budget that continues to support longstanding goals: families will continue to come first; public safety and public education will continue to improve; and Baltimore County Government will continue to work. This year, we celebrate the 350th anniversary of the founding of Baltimore County, so this is not the first time that we have weathered tough times. Our County's vibrant history and resilient people make me confident that Baltimore County will emerge from this recession stronger than ever. Respectfully Submitted, James T. Smith Jr. | 
Courthouse 