Duncan Presents Proposed Operating Budget; Holds Line On Taxes, Maintains Educational, Public Safety Priorities

BA/budget.pr 97-78 Contact: David Weaver, 301-217-6530;
or Robert Kendal, 301-217-2789

DUNCAN PRESENTS PROPOSED OPERATING BUDGET;
HOLDS LINE ON TAXES, MAINTAINS EDUCATIONAL,
PUBLIC SAFETY PRIORITIES Immediate Release: March 13, 1997

Standing in a classroom at Julius West Middle School in Rockville, County Executive
Douglas M. Duncan today announced a $2.08 billion FY 98 Operating Budget which
reaffirms his commitment to increasing funding for education, enhancing public safety efforts,
and holding the line on taxes.

EDUCATION
Over the past three years, since Duncan took office, school funding has increased by
13.2 percent. This year, the Executive is recommending a total of $886.2 million in tax-
supported funds ($951.6 in total funds) for public schools --an increase of 3.9 percent --
which represents nearly 99 percent of the Board of Education's request. The recommendation
includes nearly $25 million in new local funds, which would exceed the State's Maintenance
of Effort guidelines by $8.1 million. Including State aid of $8.2 million, the tax-supported
funding per student in the latest budget would increase by $99 to $7,060.
"This budget, like my previous two, sends another strong message that the education
of our children remains my top priority," Duncan said.
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DUNCAN PROPOSES OPERATING BUDGET 2-2-2-2

Also under education, a 2.9 percent increase is earmarked for Montgomery College.
The Executive's proposed budget for the college is $87.5 million, or an additional $1.1
million above the college's Maintenance of Effort level.

TAX RELIEF
Also for the third consecutive year, Duncan is recommending not raising the average
property tax rate. He also is not proposing any other increases in local taxes.
"We have shown, during the last two years, that we can avoid tax rate increases while
improving basic services, " Duncan said. "We do this by increasing our tax base, maximizing
federal and state aid, and focusing on our priorities."

PUBLIC SAFETY
The budget provides full support for 60 new police officers who are partially funded
by a federal grant. Half of the new complement will begin street patrol this fall and the other
half in the spring of 1998.
Full-year funding is included for the Central Processing Unit, which is operated by the
Department of Corrections and Rehabilitation. This would help police officers return to their
beats as soon as possible after making an arrest.
Duncan is also recommending additional funding "to secure the courthouse during
evening and weekend use; to respond to the workload of the Circuit Court, the State's
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DUNCAN PROPOSES PERATING BUDGET 3-3-3-3

Attorney, and the Sheriff; and to maintain the County's excellent fire and rescue system."

ECONOMIC AND COMMUNITY DEVELOPMENT
Calling the revitalization of Silver Spring "one of our highest priorities," Duncan
recommended what he termed "several significant actions" which would complement the work
of the recently appointed Silver Spring Redevelopment Steering Committee.
- Merging the staffs and co-locating the Silver Spring Redevelopment Office,
the Silver Spring Services Center and the Silver Spring Urban District Office in the Central
Business District.
- Transferring $615,000 from the General Fund to the Urban District to avoid
raising Urban or Parking District tax rates.
- Adding funds to ensure that Silver Spring remains clean and safe through
improved level of maintenance, improved appearance of public facilities and areas, improved
identity for downtown, and improved security.
To help fully implement the new Closing Costs Assistance housing program, the
County has leveraged $1 million in federal funding. In turn, the County must provide a
guarantee totaling $300,000. This budget includes that amount, in addition to $30,000 for
HOC to administer the program.
In support of the Executive's recently announced fair housing initiative to fight

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DUNCAN PROPOSES OPERATING BUDGET 4-4-4-4

housing discrimination, funding is included to help identify and remedy discriminatory
practices.
Successful economic development strategies in the past year attracted or preserved
more than 4,000 jobs and resulted in $43 million of additional private investment into the
county. To further support these endeavors, the Executive again is recommending
contribution of $1 million for the Economic Development Fund.

LIBRARIES, RECREATION and THE ARTS
Reflecting another of the Executive's stated top three priorities, the budget
recommends funds to cover expanded hours at the Special Needs Library in Bethesda from
34.5 to 42 hours per week and an increase of nearly $800,000 for materials, one of the most
significant increases in this program in the past decade. This budget also includes funds to
cover consulting for the design and procurement of hardware and software necessary for the
department to update its Integrated Information System, including the Public Access Catalog.
Funds are also recommended for new Community Recreation Centers in the East
County and Germantown, in addition to a new pool in Germantown. Recreation programs in
Takoma Park are supported through a joint venture with the City and the Parks Department
which would provide use of the recreation center in the former Prince George's portion of the
City.
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Maintaining his strong support for the arts, the Executive included funds to help
explore the feasibility of a new arts center at Strathmore Hall.
The budget also recommends full funding for the Maryland-National Capital Park and
Planning Commission's request.

HEALTH AND HUMAN SERVICES
In conjunction with Medicaid reform required by State law, the Executive is
recommending a phased three-year approach, especially in the mental health areas, to
minimize the impact on clients. The changes will not reduce existing service levels but will
cut expenditures by nearly $1.9 million in FY 98.
Due to savings realized through the Health and Human Services reorganization, the
executive's budget calls for continuation of services at their current levels, plus enhancements
for seniors, the disabled and minorities.

WORKFORCE AND COMPENSATION
Despite adding police, correctional officers, staff for new recreation centers and
selected other facilities, the budget holds constant the number of tax-supported, County
employee work-years in relation to the size of the County population. The budget includes
full funding for pay and benefit agreements negotiated with County employee unions, as well
as for non-represented workers.
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DUNCAN PROPOSES OPERATING BUDGET 6-6-6-6

OTHER HIGHLIGHTS
Thanks to successful lobbying last year in Annapolis which increased the County's
share of Highway User revenues, more than $2.5 million will be available in FY 98 to
enhance snow removal and leaf collection capabilities and provide significant improvements
in local highway maintenance. In turn, these improvements will complement the County's
Renew Montgomery initiatives through the CIP, reduce the backlog of infrastructure
maintenance, and support preservation of neighborhoods.
The change-over in FY 98 to curbside pickup of solid waste, in addition to once-a-
week collections in the downcounty area, will be reflected in the trash collection fees.
Solid waste disposal charges will increase, but at a lower rate than expected. The rise
is due primarily to the implementation of mixed paper recycling program which will be
launched next year. Review of in-hand proposals to provide out-of-county haul for ash from
the County's Resource Recovery Facility in Dickerson will continue. Approval of the
proposals would mean no construction or use of the Site 2 landfill planned for Dickerson and
closure of the currently utilized Oaks landfill in Laytonsville.
The Year 2000 computer conversion problem is requiring that some funds be diverted
from general government programs. Due to estimates that run in excess of $10 million over
the four tax-supported agencies, Duncan is recommending that additional funds -- exceeding
normal levels -- be placed in reserves. "Because of the critical need to ensure that our
computer systems function properly when the century turns," Duncan said, " I must,
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DUNCAN PROPOSED OPERATING BUDGET 7-7-7-7

regrettably, recommend that we postpone the implementation of the property tax credit,
and I am proposing that those revenues be directed to reserves for the Year 2000 solutions."

THE BUDGET PROCESS
County law requires that the County Executive submit to the County Council proposed
capital and operating budgets each year, no later than January 15 and March 15 respectively,
which include recommended expenditures and revenue sources for the coming fiscal year.
The Executive's proposed operating budget now goes to the County Council for
consideration.

THE BUDGET ONLINE, IN PRINT
The County Executive's FY 98 Proposed Operating Budget is available this year, for
the first time, via the Internet. The County's home page address is: www.co.mo.md.us
The budget also is available electronically on CD. Copies of the CD and the budget
book are available for $10 each from the Office of Management and Budget, Executive Office
Building, 101 Monroe Street, 14th Floor, Rockville.
For more information, call, 301-217-2789.

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