Lawmakers want to resist shifting teacher pension costs

Say time's not right to push expense onto counties

Friday, Feb. 20, 2009

A proposal to pass on a portion of the cost of teacher pensions to local governments is worthy of discussion, legislators said, but should not be implemented while the economy is in shambles,

Counties are experiencing similar fiscal troubles and putting a greater burden on them could force higher property taxes or a cut to services, which lawmakers believe would be a grave error. "When you're in the middle of a crisis like we are right now, I don't think it makes sense to make this shift," said Del. Peter F. Murphy (D-Charles).

"I think it's the wrong time to be shifting burdens to the local jurisdictions," echoed House Minority Leader Anthony J. O'Donnell (R-Calvert, St. Mary's).

Senate President Thomas V. Mike Miller Jr. has filed legislation that would make counties pay the pension costs of new school system employees and the additional expense of teacher salary increases. Teacher pensions are increasing $137 million, or 22 percent, in Gov. Martin O'Malley's $31.6 billion spending plan for fiscal 2010, which begins July 1.

"It puts heavy pressure on our state budget, but we recognize now is not the time to shift that responsibility to the counties," said Del. John Bohanan (D-St. Mary's).

Sens. E.J. Pipkin (R-Upper Shore) and David R. Brinkley (R-Frederick, Carroll) have also introduced a bill to shift increases in pensions to the counties until the cost is evenly divided.

Miller (D-Calvert, Prince George's) has conceded that his measure will rile education advocates and stands little chance of passing. But given the yawning budget gap, lawmakers must consider all options.

Still, some fear that making counties share the cost will hamper the progress that school systems have made in recent years since the passage of the landmark Thornton education funding plan in 2002. Maryland was recently honored as the No. 1 school system in the country by Education Week, a national trade magazine

"When the program was showing such success, I think this is shortsighted," said Del. Murray D. Levy (D-Charles). "This has the potential to hurt education badly and permanently."

But Sen. Thomas "Mac" Middleton (D-Charles) said it's important that legislators have the opportunity to consider the idea. "Before the battle lines are drawn and the war begins, there has to be some discussion."

He believes shifting the burden to counties would necessitate local tax increases at a time when citizens are already having trouble paying existing bills.

Even the suggestion that counties pick up part of the cost of teacher pensions is troublesome to local officials.

"The only expenditure that is mandated by the Maryland state constitution is education and it seems to me that the people in Annapolis would build their budget with the essentials first and the non-essentials last," said Charles County school board member Collins A. Bailey. "But it seems like education is always the discussion that is held until last and I think that's done for political purposes and that's unfortunate."

Pension liabilities for school systems in Southern Maryland fall in the middle of the pack of jurisdictions for fiscal 2010. The state pays $21.5 million for teachers' retirements in Charles County, $15.2 million in Calvert and $13 million in St. Mary's.

"It would be devastating to us," said Bill Fisher, president of the Education Association of Charles County. Layoffs could be possible and it might be difficult to avoid higher class sizes as more educators who leave their jobs are not replaced, he said.

The idea may garner more support when the economy has stabilized. "I think we're going to have to look in the future at some of that burden being shifted," said Del. Sally Y. Jameson (D-Charles).

Pipkin's bill aims to give the state more control over how money is spent. "It's grown to $759 million of a $14 billion [general fund] budget," he said. "The growth rate is very sharp and the state has no control what counties pay the teachers. 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."

abrody@somdnews.com

Staff writer Douglas Tallman contributed to this report.