FISCAL YEAR 2018 BUDGET ADDRESS 1
State of the County The County is in a good place with positive momentum. • 270,000 jobs (all-time high) • Unemployment rate of 3.8% (Maryland 4.6%) • Median household income of $89,860 (29 th highest in the U.S.) • $41 billion economy (4th largest in MD) • Diverse economic base 2
Budget Overview (dollars in millions) Change FY2017 FY2018 (approved) (proposed) $ % Expenditures* $1,397.5 $1,457.5 $60.0 4.3% * Recurring 3
FY18 Budget Priorities Pre K-12 education and public safety remain our biggest budget priorities. Board of Public Education 51% Safety 28% 4
Five-Point Plan Vision: The best place to live, work and start a business • Reduce taxes and fees. • Improve the education system. • Enhance public safety. • Make government more efficient and customer-friendly. • Improve our quality of life. 5
Tax and Fee Reduction 6
Tax and Fee Cuts to Date Tax and fee cuts since FY15 cumulate nearly $64 million. Income Tax Rate Cut $16.0 Property Tax Rate Cuts $33.6 Water/Sewer Connection Fee Cut $13.8 Senior Plus Fee Cut $0.1 Pet Fees Cuts $0.1 Occupancy Permit Fee Cut $0.1 Total $63.7 7
Proposed Tax Eliminations in FY18 Movies, athletics and mobile home tax eliminations aggregate $3.3 million annually. Movies Athletic Facilities Mobile Homes $1 per person per movie $36 per person per $300 per family per year year 8
Highland Beach Tax Differential 9
Property Tax Rate Reduction Reduction will save taxpayers $5.7 million in FY18. FY2017 FY2018 (approved) (proposed) Change Rate per $100 Assessed Value $0.915 $0.907 ($0.008) 10
Property Tax Rate Trend FY18 represents the fourth straight property tax rate cut. Property Tax Rates FY14-FY18 $0.96 $0.95 $0.94 $0.93 $0.92 $0.91 $0.90 $0.89 $0.88 11
Education (Capital) 12
School Construction Priorities Nine school construction projects are funded in FY 2018. (dollars in millions) New School/Replacement 6-yr CIP Jessup Elementary (construction) $45.2 Arnold Elementary (construction) $40.8 Crofton High School (construction) $124.5 Modernization/Revitalization Manor View Elementary (construction) $34.4 High Point Elementary (construction) $40.5 George Cromwell Elementary (construction) $32.7 $35.4 Edgewater Elementary (design) Tyler Heights Elementary (design) $32.1 Richard Henry Lee (design) $32.4 13
Crofton High School Construction of the $125 million project begins in FY18. 14
Old Mill High School Two smaller schools on two campuses will replace the existing mega-sized high school. Middle (North) Middle (South) High School 15
High School Size by County Anne Arundel County high schools have the highest average enrollment in Maryland. 1,600 800 400 200 16
Annapolis Library Groundbreaking for the new $24.2 million Annapolis Library will occur in FY18. 17
Health Sciences & Biology Building Planning continues for this critical project to train healthcare leaders. 18
Education (Operating) 19
Education Priorities Assure Continue health consistent benefits fund STEP is solvent increases 20
Health Benefits Fund Crisis • The fund is on the brink of insolvency. • Incoming revenues from County and employee contributions are running $30 million short annually. • Without corrective, near-term action, layoffs or furloughs will be the most likely result. 21
Causes of Health Benefits Crisis • Diversion of revenue stream from health benefits fund to school system employee salaries in FY15 • Significant increases in healthcare costs in recent years • Unaffordable plan configuration – One of the lowest employee contributions in Maryland – Among the lowest co-pays in Maryland 22
Actions to Date Significant actions have already been taken but are not a permanent solution. (dollars in millions) Full Impact CareFirst Contract $4.0 FY17 1st Q Payment from County 10.0 FY17 4th Q Payment from County 5.0 Total $19.0 23
Reform Concept: Shared Sacrifice Board of Education County Employees Government $30 million annual impact 24
Reform Proposal FY18-19 (dollars in millions) FY18 FY19 Increase Employee Contribution $4.0 $8.0 School System Reallocations 4.0 8.0 County Health Fund Rescue 5.0 10.0 CareFirst Contract Savings 2.0 4.0 $15.0 $30.0 25
Proposed Teacher Pay Increases • Full STEP on July 1 ($15.6 million) – County backfills State shortfall ($4.4 million) • One-time subsidy to employees to offset health premium increases ($7.5 million) 26
Recurring Funding Increase to AACPS We are proposing a $26 million ongoing increase, or 4.1% , in County support of the AACPS operating budget. (dollars in millions) FY18 Maintenance of Effort (Required) $6.2 Health Fund Rescue (Discretionary) 5.0 Additional Payroll Support (Discretionary) 9.4* E-Rate (Discretionary) 1.4 Monarch Startup (Discretionary) 4.0 $26.0 * Includes $4.4 million to backfill State shortfall. 27
Funding over MOE The FY18 proposal is $19.8 million over Maintenance of Effort requirements. $20 Increment above MOE $18 $16 Dollars in millions $14 $12 $10 $8 $6 $4 $2 $0 28
Board of Education Funding Overall education funding will increase 2.9% to an all-time high of $1.2 billion. (dollars in millions) FY17 FY18 Increase (approved) (proposed) $ % County $643.2 $681.7 $38.5 6.0% State 354.2 356.4 2.2 0.6 Federal 58.3 63.4 5.1 8.7 Other 65.8 52.2 -13.6 -20.7 $1,121.5 $1,153.7 $32.2 2.9% 29
Community College and Libraries (dollars in millions) FY17 FY18 Change (Approved) (Proposed) $ % AACC $40.4 $42.0 $1.6 4.0% Libraries $20.2 $21.2 $1.0 5.0% 30
Public Safety 31
Central Booking Facility Construction will begin on the $12 million Central Booking facility in FY18. 32
Police Academy Construction of the new $18.7 million Police Academy will begin in FY18. 33
Age of Police Fleet The average age of police vehicles will fall to 3 years in FY18. 7 6 Average Vehicle Age 5 4 3 2 1 0
Fire Station Projects (dollars in millions) Location Project Cost New Stations: Lake Shore $5.9 Galesville 6.8 Jacobsville 6.2 Herald Harbor 7.7 Modernizations: Harmans Dorsey 1.9 South Glen Burnie 1.8 Total $30.3 35
Woodland Beach Fire Station The Woodland Beach Fire Station will receive $1 million toward its relocation effort in FY18. 36
Increased Public Safety Headcount Fire Department 14 Police Department 21 Sheriff’s Office 1 State’s Attorney’s Office 2 Total 38 37
Public Safety Headcount Authorized Positions Change FY15 FY18 FY15-18 Detention 398 397 -1 Emergency Mgmt. 5 5 0 Fire 896 922 26 Parole & Probation* 51 64 13 Police 951 995 44 Sheriff 101 105 4 State’s Attorney 108 117 9 Total 2,510 2,605 95 *State funded positions. 38
Office of Emergency Management Reorganization has enhanced readiness. • Office was previously embedded in the Fire Department • No consistency of leadership • No involvement in cabinet deliberations • Not fully prepared for a major event 39
OEM Organization Professional emergency planners have been installed. Director Kevin Aftung Administrative Assistant Denise Rogers Secretary II Tristin Ziegenhein Merit Exercise Contract EM Contract EM Merit Planner and Training Specialist Technology Jim Tully Jim Krempel Christina Calp Victor Henderson Contract Exercise Contract Planner and Training Katie Starr Pending 40
Storm Ready Anne Arundel County declared “Storm Ready.” 41
Community Alliance Prosecution Pilot will provide State’s Attorney coverage in districts. 42
Inmate Rehabilitation Over 900 inmates have earned GED certificates since 1998. 43
Heroin Photo: Joshua McKerrow, The Capital 44
Opiate Abuse Overdoses have more than doubled over the last year. Full Year Year to Date 2015 2016 Chng. 2016 2017 Chng. Overdoses 344 814 136% 233 330 42% Fatalities 51 119 133% 45 38 -14% 45
Fighting Back Against Heroin Enforcement Treatment Education • Expanded Police • New treatment • School assemblies Diversion Squad center • Town halls • Dedicated heroin • Increased • Over 60 prosecutor provider grants community • Prioritized heroin • Increased presentations warrants budget for • National Narcan recognition • Deployed Vivitrol in jails • Safe Stations 46
Opioid Intervention Team (OIT) • State initiative to facilitate coordination among the Counties and the State • State-level OIT to provide overall leadership • Anne Arundel County OIT to succeed Heroin Action Task Force • County Senior Policy Group (SPG) to establish countywide policies 47
Government Operations and Reform 48
Structural Budget Surplus The County will have a structural surplus of $6 million in FY18. Structural Budget FY10-18 $10 $0 Dollars in millions -$10 -$20 -$30 -$40 -$50 49
Bond Ratings Anne Arundel County maintains strong bond ratings. Agency Rating S&P AAA Moody’s Aa1 50
New Controller Karin McQuade brings private-sector experience to the County. 51
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