Counties could pay pensions

Wednesday, Feb. 11, 2009

ANNAPOLIS — Proposals that would shift some of the burden of teacher pension payments onto the counties are drawing blistering reviews.

"All of these bills and all of these ideas undermine the whole idea of the state stepping up its responsibility for public education," said Michael Sanderson, executive director of the Maryland Association of Counties.

Senate President Thomas V. Mike Miller Jr. planned to introduce a bill this week that would shift the cost of new school system employees and the pension costs of salary increases to the counties.

"The object of being a leader is to bring issues to the forefront and I'm going to put it out there and let them discuss it and see where it goes," said Miller (D-Calvert, Prince George's).

Another measure, from Sens. E.J. Pipkin (R-Upper Shore) and David R. Brinkley (R-Frederick), would shift increases in teacher pensions to the counties until the split between the state and counties would be even.

Teacher pensions increase $137 million, or 22 percent, in Gov. Martin O'Malley's fiscal 2010 spending plan. How to pay for the rising cost of pensions has been an object of heated debate for some months. In December, Montgomery County Executive Isiah Leggett (D) said he would "draw a line in the sand" to protect teacher pensions.

But lawmakers said the state can't continue to foot the bill.

"It's grown to $759 million of a $14 billion budget. The growth rate is very sharp and the state has no control what counties pay the teachers," said Pipkin. "This system we're currently embarking on is like giving your teenage son or daughter a credit card, and you're expected to pick up the tab."

Sanderson, however, linked the state's teacher pension payments to Maryland's ranking as the nation's top public school system, according to Education Week, a national education publication.

"The state has made good progress and it's paying off in the classroom. We're seeing better results," he said.

If counties were forced to absorb teacher pension costs, some would have no choice but to raise taxes to cover the expense.

"It'll just be doubling back on the commitment we thought we all were making to our schoolchildren," Sanderson said.

Miller, who considers himself a champion of K-12 education during his nearly four decades in Annapolis, acknowledged that his measure will rile some lawmakers and advocates.

"We need to have the conversation," said Sen. Nancy J. King (D-Montgomery), who was skeptical that the bill would generate much legislative support. "Most counties will go bankrupt under the legislation."

But Miller said the state budget crisis and the threat of state employee layoffs demands consideration of every conceivable option.

"It might not pass, but it's going to let people know where the truth is and the differences in what the state's doing and what the counties are doing," Miller said.

Staff writer Sean R. Sedam contributed to this report.

abrody@somdnews.com