Tuesday, May 22, 2007

The Leopold Budget Problem

So I missed most of the upfront debate about County Executive John Leopold's Fiscal 2008 budget . But there are a few things that I need to note:
  • Any budget that has an increase in spending of nearly $155 million in a tough fiscal environment is not a fiscally conservative, fiscally responsible budget. As expected, John Leopold was unable to live up to his promise to tighten the fiscal ship of Anne Arundel County. Some may argue that not to be the case, but it would be hypocritical for fiscal conservatives to assail Governor O'Malley's budget increase when proportionally Leopold is proposing a much larger 6.5% overall budget hike.

  • It is incomprehensible as to why Leopold was so insistent about the need for the car rental tax. Existing revenues are projected at $150 million higher than in FY 2007. Why do we need additional revenue sources when revenues are up? To fund more of Leopold's discretionary spending?

  • I am glad that Leopold did not give the Board of Education the entire 19-percent budget hike that Maxwell, Peterson et. al. believe they should receive. However, it is fiscally irresponsible to allocated a $60 million increase in Board of Ed spending when Maxwell and Board leaders seem to be incapable of putting into words what the hell this increase is actually going to accomplish. As I noted in February, 80 percent of the budget is spent on personnel; is that where the increase is going, because nearly half of the $60 million increase is going to salaries? Is it going into classrooms? Who knows, because the unelected Board of Education refuses to specify why thy need all of this additional money.

  • The one bright spot I noted is that spending in the Office of the County Executive was reduced. While Leopold may be trying to put on a charade that he is spending responsibly, at least he is reducing spending within his own office.

  • I am very disappointed in Leopold's handling of grants. He has taken a lot of flack for dramatically slashing the amount of grants that the office gives out. And he should take flack...for leaving them there at all. The fact of the matter is that the Anne Arundel County Government is not a bank from which private organizations get to withdraw funds sans penalty. The concept of government redistributing money from private citizens to private organizations is a very statist idea; something that a true fiscal conservative would not get into. All of the money should be cut.

  • Particularly disturbing is a $92,000 grant to the Broadneck HS Athletic Booster Club. The organization did not receive funding in the FY2007, and there is a history of Broadneck receiving money from the Department of Recreations and Parks for the installation of FieldTurf during Dennis Callahan's time as Director. It seems odd, given that the Booster Club needed to raise the majority of the money and that Callahan is now Leopold's Chief Administrative Officer.
The fact of the matter is that Leopold's budget is extremely disappointing to fiscal conservatives. Of course, I expected nothing less given Leopold's proud record of supporting big government and liberal positions. Leopold's budget seems like one produced by a County Executive looking to move up in 2010. If not, and with his spending policies and attempts to raise taxes, Leopold is extremely vulnerable to a challenger in that year's Republican primary.

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4 Comments:

Blogger Greg Kline said...

I think that is a bit extreme. The fact is that without a tax increase, leaving the car rental tax for the moment, and spending within revenue, John Leopold will not be vulnerable to a Republican challenge.

If you look at the budget, much of the education increase goes to teacher salary increases, previously negotiated, and ever rising costs for special ed, which the county is somewhat bound to spend.

Is there still fat? Yes. Could Leopold have been more fiscally conservative? Yes.

But to say this budget was a major disappointment and leaves him vulnerable politically to the right, my friend, is wishful thinking.

If he can say in 2010 that he held the line on taxes, no one will beat him, period.

10:36 AM  
Blogger David K. Kyle said...

There is no doubt that he could have done better but at least he moved in the right direction in areas that have no business recieving tax dollars

7:20 PM  
Blogger McCainiacNYC said...

Except now of course, they "found" money to give the nonprofits.

7:22 PM  
Blogger David K. Kyle said...

That only proves that if you whine and cry enough you will get a handout. It is unfortunate that the general public doesn’t complain like all those other people.

2:37 PM  

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