A Skeptical Council Debates Proposed Prince George’s Tax Increases

Prince George's County Council. All images by County.

A funny thing happened last week at a town hall meeting in Capitol Heights: the Prince George’s County Council actually engaged in a meaningful and full-throated debate with citizens and the executive branch of county government over the proposed FY2016 public schools budget.

The council is weighing county executive Rushern Baker’s proposal to raise a variety of local taxes, including a 16% increase in real property taxes, to pay for the additional $133 million that the school district is seeking in next year’s budget. The council must approve a final budget no later than May 31 for the fiscal year beginning June 1.

Public hearings before the county council are often like choreographed stage plays, where council members listen in polite silence to their constituents for up to three minutes each and then either immediately adjourn or, with little to no debate or discussion, proceed to do what they had already made up their minds to do. (Tuesday's budget hearing in Upper Marlboro generally followed that mold.)

But council members went somewhat “off-script” at last week’s town hall, which was held at Central High School on April 21. Instead of dispassionately receiving public comments, council members became integrally and vocally involved in the debate. They listened intently and actively, often amplifying the concerns expressed by the citizens. And sometimes, they openly challenged the county executive and the CEO of the Prince George’s County Public Schools (PGCPS), Dr. Kevin Maxwell.

Baker and Maxwell have been holding their own series of meetings with the public, but those have been much more stilted affairs by design. Typically, the county executive and his staff, the schools CEO, and the school board chair, Dr. Segun Eubanks, give a presentation about why they are proposing the tax increases and the expanded schools budget. Then, they proceed to answer selected written questions that the audience members have put on index cards. However, the county executive’s staff handpicks the questions that are actually presented to the panel for a response.

Dr. Eubanks, Dr. Maxwell, and County Executive Baker

Baker, Maxwell, and Eubanks were also present last week at the council’s town hall, and they gave essentially the same presentation as they typically do at their own forums. This time, though, the citizens’ questions were coming from the floor, uncensored, and the council members were present to hear and react to them in real time.

If you have time and want to get the best overview of all sides of this debate, you should really watch the whole three-hour town hall. For those that can’t or don’t wish to do that, here are a few of the highlights:

Rushern Baker falsely believes the only thing holding down Prince George’s home values is the county’s low-performing schools. The county executive seems to have convinced himself that he has solved all of the county’s myriad of problems and that the only thing left for him to do is transform the school system: “The reason the value of the homes in Prince George’s County aren’t the same as surrounding jurisdictions is not because of crime, because crime is down; it’s not because of economic development, because we have economic development coming; it’s not because of healthcare. It’s because of our schools,” Baker exclaimed. The quality of the schools “determines the value of the homes. That’s the difference between us and the other areas…That’s the only thing we haven’t done.”

Baker’s claim, of course, is more political spin than substance or truth. School quality certainly has an impact on home values, but it is not the sole factor. Nor is the relatively low quality of Prince George’s schools the sole factor that distinguishes Prince George’s County from its neighbors.

As the Washington Post reported earlier this year, the county’s racial demographics significantly reduce home values irrespective of any other factor. More importantly, it is well known that the county’s long history of corruption and its overly politicized development review process significantly hinder major employers and high-quality developers from doing business in the county. And let’s not forget the devastating economic consequences of the county’s more than 30 years of neglect of its transit-rich inner-Beltway gateway communities. These are all real issues that the county executive must face honestly—and none of them have anything to do with schools.

Lehman chastises Baker for rushing this proposal through and not seeking to build public support for it. In one of the more heated exchanges of the evening, councilwoman Mary Lehman (District 1) pointedly criticized the county executive for his take-it-or-leave-it approach in seeking to push these hefty tax increases through: “This cannot be presented as an all-or-nothing. We should’ve had this conversation a year ago, and Mr. Baker could’ve built public support for [this budget]. And he chose not to.”

Baker & Lehman square off in a tense exchange.

Toles and Lehman push back on Baker’s comparison of Prince George’s to its wealthier neighbors. One of the county executive’s central talking points for why the county needs higher taxes to fund schools is that counties like Montgomery pay more for their school systems, including paying higher salaries for teachers. But council members Karen Toles (District 7) and Mary Lehman (District 1) countered that argument with the reality that Prince George’s is simply not as wealthy as its neighbors.

“In other counties…they have a higher commercial tax base, so they have more money coming into their coffers, so they are able to invest more money,” Toles said. In spite of that wealth disparity, Toles rightly noted that Prince George’s already pays a similar percentage of its local taxes into education, and that Prince George’s gets more state aid than Montgomery does to make up for the wealth disparity.

Lehman made the point more plainly to Baker: “When you compare us to Anne Arundel and Howard, you do us a huge disservice…I think it is disingenuous to compare…this county to our much wealthier neighbors…We don’t have a money tree in this county.”

Councilman Turner

Turner urges caution, noting that the proposed increase to the school system budget will be virtually irreversible in future years. Councilman Todd Turner (District 4) urged his colleagues to consider the future ramifications of making such a huge increase in the school system’s operating budget. Under a Maryland state law known as “maintenance of effort,” counties are generally prohibited from reducing the amount of their local portion of school funding. Therefore, if the county accepts the county executive’s tax increase proposal this year, it will have to continue funding schools at that level in subsequent years—even if CEO Maxwell’s strategic plan doesn’t end up bringing the school system from near the bottom into the top 10, as he predicts.

Councilwoman Taveras

Taveras suggests postponing any increases in the school budget until an independent performance audit is completed. Councilwoman Deni Taveras (District 2) pointed out that the county spends 64% of its local revenues on the public school system and that it is important to ensure that PGCPS is spending that money in the wisest and most effective way possible. She further declared that “this budget is not going to move” until the county council reaches an agreement with the school system as to how and when a performance audit will be completed.

Toles expresses disbelief that a funding increase will result in better schools. Councilwoman Karen Toles (District 7) asked CEO Maxwell point blank whether he could guarantee that the $133 million increase that he is proposing as part of his strategic plan will in fact raise PGCPS’s ranking “from the bottom to the top.” CEO Maxwell said he could, and noted that he had already started turning the school system around by increasing graduation rates, improving promotion rates, and growing enrollment.

Councilwoman Toles

Unpersuaded, Toles shot back, “I don’t believe you.” She noted that Baltimore City pays the second-highest amount per pupil in school expenditures, but nevertheless remains at the bottom of the heap in terms of performance. Additionally, Toles cited Maxwell’s successes during the previous academic year as evidence that the school system can make improvements without huge tax increases.

Toles’s and Tavares’s points actually get to the crux of the issue, which is that there is no necessary correlation between more money and better schools. As I outlined in an earlier article, there are other large school systems with economies comparable to Prince George’s, such as Virginia Beach, that are funded at much lower levels, but that nevertheless outperform Prince George’s, even controlling for race. The real question is whether PGCPS is wisely using the money it has.

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The council members’ insightful commentary and thoughtful public engagement and debate on the issues surrounding the proposed FY2016 public schools budget came as a welcome surprise to many Prince Georgians. The county could use a great deal more of these kinds of debates.

Prince George's Should Reform Its Government, Not Raise Its Taxes

Image from OpenSource.com on Flickr

Since it already has the highest tax burden and the lowest wealth in the Washington region, it would be a bad idea for Prince George’s County to raise its property tax rates by 16%—even if it’s to increase funding to the school system. If Prince George’s really wants to secure more revenue over the long term, it should first focus on eliminating the corrupting influences in county government and restoring the public’s faith and trust.

Specifically, the county should establish an independent inspector general’s office, do away with the county council’s role in individual development review, create a public financing system for local elections, and include at-large seats on the county council.

Public trust is broken in Prince George’s

Image from BK on Flickr

Shortly after taking office in 2010, county executive Rushern Baker forthrightly acknowledged the need for county officials to restore public trust. The need was particularly acute in the wake of the odious corruption scandal that sent his predecessor, Jack Johnson, to federal prison for seven years.

Baker commissioned a blue-ribbon advisory board led by former Baltimore City mayor and renowned lawyer and higher education administrator Kurt Schmoke to issue recommendations for how the county could “provide transparent, open, and accountable services for its citizens.”

Schmoke’s advisory board issued a detailed report in June 2011, recommending a host of reforms, the most significant of which included establishing an independent inspector general’s office to investigate, publicly expose, and prevent fraud, waste, and abuse, as well as inefficiency and mismanagement by elected officials, county employees, and contractors. However, the county council blocked Baker’s efforts to establish the inspector general’s office.

Baker promised to redouble his efforts to enact ethics and transparency reforms in his second term, which began last December. Yet, shortly after he was re-inaugurated, one of his deputy administrators rhetorically unfurled a “Mission Accomplished” banner and declared that the county had magically “transitioned…to a place where it’s a trusted brand, where people expect good things to happen.”

Ironically, in what can only be described as an epic message fail, the administrator who made that lofty pronouncement, Victor Hoskins, promptly left his post after only six months in office to go head up Arlington County’s economic development office. Ouch!

The truth is that the ugly shadow of the Jack Johnson years still looms large over Prince George’s County, even now. People are still intensely mistrustful of the county government, and for good reason.

For example, many feel that Baker intentionally sandbagged the electorate when he reversed his stated opposition to gaming and instead supported construction of a billion dollar casino at National Harbor. Many feel the same way about Baker’s current effort to use a 2012 state law to circumvent the county’s charter cap on property taxes, known as TRIM.

The county council fares no better in the public’s eyes. Council chair Mel Franklin, for example, has evinced a bad habit of using legislative trickery to sneak through controversial, developer-friendly zoning bills at the last minute, evading public debate and opposition.

And last year, the council joined with Baker in a failed effort to push through a ballot measure to extend term limits in the county—a move funded heavily by developer interests, who sought to maintain their competitive political advantage by keeping their lasissez-faire friends in office longer.

County Council. Image from Prince George's County.

Likewise, the council refuses to halt its controversial practice of meddling with the county Planning Board’s (M–NCPPC) decisions on individual development proposals. Developers routinely cite this practice as a main reason they are apprehensive about doing business in the county. (Maryland’s highest court is currently reviewing a lower appellate court decision declaring the county council’s actions in this regard illegal.)

The county must institute bold reforms to restore public faith

Back in 2010, in the wake of the Jack Johnson debacle, everyone from the Washington Post to anonymous county employees was offering suggestions to Rushern Baker for ways Prince George’s could eliminate corruption, increase transparency and accountability, and structurally reform government. Here are my top four recommendations:

Image from OEA-OES on Flickr

1. Establish an Independent Inspector General’s Office. This was a primary recommendation of the Schmoke panel that was quashed by the council in 2012. This council should stand up and allow the IG’s office to come to fruition. The council’s non-independent Office of Audits and Investigations, which was originally established in 1970, and the recently created Office of Ethics and Accountability, established as a compromise in 2012, should both be folded into and replaced by an independent IG’s office. The IG should serve a four-year term that overlaps with the council and county executive’s terms, such that the IG’s term expires at the midpoint of each council term and continues to the midpoint of the succeeding council’s term.
2. Eliminate Council Review of Individual Development Applications. The courts may well take care of this item themselves, but if they don’t, the council should immediately extricate itself from the administrative review process relating to individual development applications. Any administrative appeals from the Planning Board’s decisions should be heard by the Board of Appeals, and any further review should take place in the courts. The council should confine itself to setting the general ground rules, as reflected in the Zoning and Subdivision ordinances, and then leave the administration of those rules to M–NCPPC.

   

   Image from Patrick Gensel on Flickr

3. Establish a Public Financing System for Local Elections. Thanks to a recent amendment to state campaign finance law, counties may now establish a voluntary public financing system for local elections. Prince George’s should definitely do this, as Montgomery County has recently done. U.S. Supreme Court precedent prevents the imposition of a mandatory public campaign finance system, so it’s not a panacea. Nevertheless, such a system can help to reduce the influence of special interest money—particularly from developer interests—that has so tainted Prince George’s politics.
4. Restructure the Council to Include At-Large Seats. Currently, the Prince George’s county council has 9 members, each of whom represents a single district of the county. Through informal features such as “council courtesy,” where council members often blindly defer to the wishes of the council member whose district is most impacted by a particular decision, council members each tend to be rulers of their own individual fiefs. There is no member of the legislature who is electorally accountable for being concerned with countywide interests. That can make it hard for the council to make hard policy choices that may be good for the whole county in the long term, but may appear to disadvantage a particular district’s parochial interests (such as preventing unconstrained sprawl development away from transit). To address this issue, Prince George’s should follow Montgomery County’s example and restructure its council so that it has 4 at-large seats and 5 district seats.

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These suggested structural reforms will take hard work and political sacrifice to implement successfully—but over time, they will help to restore the public’s faith and trust in the Prince George’s County government. That, in turn, will foster more robust commercial investment and development in the county—thereby enabling it to bring in more revenue without raising taxes.

In the third and final segment in this #PGTaxes series of posts, I will discuss another, more concrete, strategy that the county can implement to raise more revenues over the long term without raising taxes.