Speech reveals nothing new other than the promise of more new taxes
During her first annual address to the members of the 71st Baltimore City Council, Mayor Stephanie Rawlings-Blake promised to work together with her council colleagues for the “greater good of Baltimore’s people”. Yet, many council members remained skeptical of such promises, even pointing to obvious words of contention during her speech – which this year was not provided in advance, even to the council, before today’s afternoon address.
“That is her job to be the cheerleader for the City, however I am not sure that we can fix the city’s problems by the means in which she has laid out here today,” said 4th district councilman Bill Henry Jr., who says he is set to introduce two resolutions at the next city council meeting (2/27/2012) which will address how the city should apply future slots revenue to school construction and property tax relief efforts - without the city having to raise more taxes during a time of economic uncertainty for many Baltimoreans. “I believe there are other funding sources out there that we have yet to uncover, or address; therefore, before we commit to raising the taxes on our city’s hard working constituents, who mind you are already taxed enough, it is our job as a council to ensure we have left no stone unturned in search of needed revenue to fill the current budget gaps,” said the northeast councilman.
The first resolution calls on Mayor Stephanie Rawlings-Blake to commit to an equal division of the expected revenue from the City’s proposed slots facility between school construction and property tax reduction. Mayor Rawlings-Blake has proposed that 10% of the revenue go to funding school construction, while holding 90% back for reducing property taxes. “This is about getting the most bang for our buck,” said Henry. “Half of the slots revenue will leverage over $150 million in needed school construction and renovation, while the 90% the Mayor wants to use for property tax reduction will provide less than a three-cent reduction of our tax rate. What the Mayor is offering for schools isn’t enough to take care of the needs of our kids. 10% is the cut you give your agent for getting you a good deal - I think our kids deserve more than a cut.”
However, despite raising over 60-taxes and fees in her first two years in office – which rates as the most taxes/fees implemented on a local level within that time period – Mayor Rawlings-Blake addressed the need for even more tax increases, while addressing ‘three new funding streams’ which she says in her speech is “the largest City increase ever proposed in Baltimore’s modern times.” Speaking to the needs of a ‘Better Schools Initiative’, the Mayor again laid out her promise to increase the existing ‘bottle tax’ by three-cents, which she says will add $23-million annually to the school construction budget. Yet, Councilman Carl Stokes, Chairman of the Taxation, Finance and Economic Development Committee - which this, and every other tax initiative would have to come before – says he isn’t sure that increasing a local tax that has already disproportionately hurt Baltimore businesses is the answer to addressing our school construction needs.
“What we need is an aggressive strategy to grow our economy by addressing the real problems of this city, such as unfair tax breaks to big business, while homeowners and small business owners don’t share those same amenities,” says the 12th district councilman, who decided against a run for Rawlings-Blake seat last year. “Right now, the city immediately offers tax incentivizes to people wanting to do business in the city, such as Exelon and Harbor Point; however, if we lowered the city’s tax rate to be more competitive statewide, than we would better suited to negotiate, extending a much needed tax break across the board.” And while Stokes’ championed the issue of decreasing the property tax rate in Baltimore, which remains the highest in the state; Mayor Rawlings-Blake provided details today of her own plans at addressing this rate – while taking unneeded pot-shots at Stokes and other skeptical critics.
“This is a big problem that requires shared sacrifice, and it can’t be fixed with accounting gimmicks…So, rather than standing around and talking about what can’t be done, I need your support to pass this cut now, so that homeowners know the city is moving in the right direction,” stated the Mayor. She rolled out her ‘realistic plan’ to reduce the effective tax rate for city homeowners 20-cents by 2020, which she says is built in to the budget she’ll be submitting to the council next month. This targeted tax cut plan is said to see average owner-occupied homes valued at $200,000 receive $40 in cuts right away, which will increase to $200 the following year and ramp up to a $400 cut by 2020. However, this plan goes contrary to the proposed idea the Mayor had for property tax reductions last year, while Councilman Stokes believes the city could reduce the property tax in half within the same period – which he is rumored to introduce in the next couple of weeks.
Yet, pointing to an all-time low in crime and homicides – which two local reporters said was due to the city having “no one left to kill, as Baltimore remains the only major city on the East Coast to have lost citizenry over the past decade, instead of gaining population” – the Mayor addressed the city’s ‘stubborn homicide rate’ which reached its lowest level since 1977. And while many council members attributed that success more to the Dixon administrations implementation of a ‘people first’ strategy, one person who remained consistent in this reduction is the city’s police commissioner Fred Bealefeld. “I want to thank Commissioner Bealefeld for his strong focus, leadership and the ongoing stability he’s brought to the department,” said Mayor Rawlings-Blake, speaking to his leadership, which not one council member disputed.
Nor did any member of the City Council challenge the assertion made by City School Czar, Dr. Andres Alonzo, who has recently come under fire for proposing that the city and state combine for a $1-billion bond proposal to address the city’s school construction needs. Yet, while many council members were supportive of the school superintendent’s innovative thinking, the Mayor blasted his proposal in her address today, stating that “it’s false to say we can borrow a billion dollars, but that we won’t have to pay it back one way or another…if we’ve learned anything from the global crisis that nearly destroyed our financial system, it’s that over-leveraging has serious risks that we must guard against. However, when speaking to Dr. Alonso after the State of the City address, he believed that the Mayor was very interested in working together to fix the problems that exist in the Baltimore City School System – regardless of whose proposal was more fiscally sound. “How we get there is not important, so long as we get there,” said Dr. Alonso.
The Mayor also set an ambiguous goal of growing the city by 10,000 families over the next decade, by building on what she calls the “Pillars of Growth”, which she says consists of ‘improved education, further reductions in crime, the rebuilding of our communities with vacant properties and providing effective property tax relief to homeowners.’ This resolution was assigned to newly elected member Councilman Nick Mosby (D-7th), who defeated incumbent Councilwoman Belinda Conaway this fall, with the assistance of the Mayor and other community leaders. Joined by his beautiful wife and daughters, the 32-year old councilman says that while growing the city may be a monumental task, the fact that he and the Mayor both share the visionary leadership to at least try to make this tall task a reality, will help the city in the long run.
“While I remain undecided on specific tax increase proposals, until I am presented with an actual bill at least; one thing remains certain, I love my district dearly, and believe its potential, like the rest of the city, remains ripe for investment opportunities and has plenty of room for growth – and I personally plan to take full advantage of every opportunity afforded to me, to assist in its possibilities,” said the exciting new wild card member, who many will be watching to see which side he gravitates - the Mayor’s M&T Bank Stadium Club or the President’s Clubhouse. However, thus far Mosby, along with the majority of the nine black members of the Baltimore City Council, have yet to receive an invitation to the ‘M&T Bank Club’; and while the Mayor speaks about being “thoughtful and willing to work together” with those on the council, I highly doubt the Council President ‘Jack’ Young feels the love – especially after his attendance in the publically funded Skybox during the Ravens only home playoff game in over 5-years was rejected.
“The Council President has moved on from that unfortunate incident and plans to work with the Mayor, as well as with each and every member of the Baltimore City Council, to ensure the success of a prosperous and robust city,” said Lester Davis, communications director for Council President Young.
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