Sunday, November 23, 2008

Anti-tax Mood Stiffens as Legislation Passes to Inhibit Future Realty Tax Increases

The latest Robin Ficker initiative to reduce Montgomery County's ability to raise taxes at will has passed after a recount of the last election totals shows a plurality of over 5000 votes favoring the requirement that the Council must have a vote of all 9 members in order to exceed the charter limit on property taxes. Well, the chickens have come home to roost; we warned you that taxpayers were fed up with endless intrusions to your wallet to fund any and all new initiatives that some group or other demanded. The worst offender, of course, was the County's union demands for higher and higher wage and benefit increments. Here are the details in an article from the Washington Post of Nov. 20:

by Ann E. Maromow
Washington Post Staff Writer
Thursday, November 20, 2008; Page B02

Montgomery County's anti-tax ballot measure prevailed yesterday by about 5,000 votes, after election officials completed a count of absentee ballots.

The results give sponsor Robin Ficker, a onetime legislator and Bethesda real estate broker, his first victory in a 34-year quest to curb county taxes. But the practical effect for at least the next two years, according to county officials, is largely academic.

Ficker's measure, known as Question B, is intended to make it more difficult for the County Council to exceed Montgomery's charter limit on property tax revenue. By the time council members take up the budget in the spring, the measure will require a unanimous vote to surpass the limit, rather than the current requirement of seven votes.

But County Executive Isiah Leggett (D) and the incoming council president, Phil Andrews (D-Gaithersburg-Rockville), have signaled that they have no intention of exceeding the limit, which ties increases in revenue to about the rate of inflation.

Council members will be up for reelection the following year and unlikely to seek an increase in property tax revenue.

Even Ficker, who has spent thousands of dollars to petition referendums since 1974, said yesterday that he does not expect the measure to change the behavior of elected officials. Instead, he hopes his success motivates others to challenge incumbents in 2010. Ficker's effort could inspire candidates who pledge, for instance, not to be the ninth vote on the council to exceed the charter limit.

"As evidenced by this vote, there are a lot of homeowners who feel their voices are not being heard," he said. "Someone is going to give these bipartisan homeowners a voice."

By Ficker's count, the measure prevailed in five of the county's eight legislative districts, primarily in the northern and eastern parts of the county.

Since the charter limit was established in 1992, the council has voted to exceed it four times, including last spring, when the council raised property taxes for homeowners by about 13 percent on average.

Council member George L. Leventhal (D-At Large) said the measure "increases the urgency of adhering to the charter limit, but we were feeling that any way."

Saturday, November 8, 2008

Election Results Show Countians Very Upset With Continuing Tax Increases

The Robin Ficker amendment to the County Charter seems to be passing with only a few more votes needing to be counted. This amendment requires a full 9 vote plurality of the County Council in order to approve a real property tax increase above the fixed limit. Here is the editorial from the Washington Post of November 7 on this subject:


Friday, November 7, 2008; Page A18

THE JOKE HAS always been that Montgomery County residents never met a tax they didn't like. Voters, tired of being a punch line, sent a contrary message to county leaders on Tuesday: Stop the tax hikes and start spending less. Half of Montgomery voters supported a measure that would make it more difficult to raise the limit on property tax rates. The ill-advised measure, which could hinder the County Council's ability to raise revenue in a time of fiscal crisis, became an outlet for voters frustrated with spending in Rockville. It's unclear whether the measure will pass -- it's ahead by a few hundred votes with thousands of absentee and provisional ballots uncounted -- but, whatever the outcome, Montgomery lawmakers would be wise to take voters' concerns seriously.

The possible success of the measure, peddled by anti-spending ideologue Robin Ficker, isn't a total validation of Mr. Ficker's three-decade crusade against taxes. But it is a repudiation of the county government's warped fiscal priorities. The council, and County Executive Isiah Leggett (D), buckled to union pressure last year and approved audacious pay increases that far exceeded inflation and defied common sense. The raises, which total 8 percent this year for many county employees, contributed to a severe budget deficit that forced the council to approve a 13 percent increase in property tax rates earlier this year. Taxpayers, incensed by the increase, wondered why they had to bear the brunt of the budget crunch. At a time when the county is shedding jobs and many feel lucky to have a steady paycheck, shouldn't county workers also contribute to a solution?
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No doubt many voters also may have had in mind the recently reported excesses of the county's disability retirement program. More than 60 percent of Montgomery police officers who retired in the past four years are collecting service-related disability payments. Some officers have legitimate complaints; others are gaming the system and taking taxpayers for a costly ride. Reforming the disability program would have tangible fiscal benefits -- $35 million was awarded for service-related disability benefits in fiscal 2008. Reform would also send a message to voters that county leaders are serious about rebuffing excessive union influence.

Mr. Leggett could reinforce that message if he takes a firm position in negotiations about possible pay concessions. Usually the soul of conciliation, Mr. Leggett must make the case that it's better for union leaders to compromise on wage hikes than risk the council's deciding not to fully fund the increases. The council must buttress Mr. Leggett by making clear that such threats aren't idle. The alternative will be serious budget cuts that reduce services and cut jobs. That's no laughing matter.