University of Maryland College Park                                           Office of Executive Programs

Newswire Week 14 (12/30-01/05)

 

LOCAL

Delegation To Push State To Deliver on School Funds

The Washington Post _ January 02, 2003, Thursday

http://www.washingtonpost.com/wp-dyn/articles/A64688-2003Jan1.html

 

Prince George's agenda for the upcoming Maryland General Assembly can be summed up in one word: education.

The county will be fighting hard to hold the state to promises made during the two-term administration of outgoing Gov. Parris Glendening (D). Those include $35 million a year for new school construction and $36.9 million -- above and beyond state aid the county already receives -- under the so-called Thornton Commission for equity in education. If fully funded, the Thornton sums would jump to $108.7 million the following year, $176.7 million the year after, and $763.2 million over the final two of the six-year commitment.

Both capital and Thornton funds are considered vital for the state's second-largest system -- with 135,000 students, surpassed only by Montgomery County -- and the second-lowest test scores, after Baltimore City. But the state schools capital improvement office has already slashed the county's allotment for new school construction to $4.7 million.

Moreover, with the incoming governor, Republican Robert L. Ehrlich Jr., facing a $1.75 billion budget shortfall, Thornton funding could also be vulnerable.

St. Mary's Asks Go-Ahead To Borrow $24.5 Million

The Washington Post _ January 02, 2003, Thursday

http://www.washingtonpost.com/wp-dyn/articles/A56724-2002Dec30.html

 

School construction has top billing on St. Mary's County's list of legislative priorities for the upcoming General Assembly session. However, with dim prospects for full funding from the state, county commissioners are banking more on public facilities bonds to fund their key projects.

Commissioners are requesting authority from the General Assembly to borrow up to $24.5 million to construct, improve and develop public facilities during fiscal 2004 and 2005.

The money would be designated to cover the county's share of funding for projects already underway, including Board of Education projects such as the $23.6 million renovation of the James A. Forrest Career and Technology Center in Leonardtown and the $23.4 million renovation and addition to Margaret Brent Middle School in Helen.

But the bond request, formulated under the previous Board of County Commissioners, has raised some questions from the state delegation about whether the spending priorities of the county warrant the significant increase in debt. The bonds also would pay for various park, highway and county building projects.

Transfer Tax Could Rise to Aid Howard Schools

The Washington Post _ January 03, 2003, Friday

http://www.washingtonpost.com/wp-dyn/articles/A3963-2003Jan2.html

 

Faced with burgeoning student enrollment, escalating school construction costs and a cash-strapped state government, Howard County Executive James N. Robey (D) is considering asking the state legislature to increase the county's transfer tax.

If approved, the measure would increase the tax a half-percent to 1.5 percent and generate an additional $ 10 million a year for school construction, according to a draft of Robey's proposal. It comes as his administration is considering the board of education's largest-ever capital spending plan, an $ 86.3 million request for next fiscal year, which is about $ 31 million more than the school system received last year. The transfer tax is imposed every time a property is sold. Currently the revenue it generates -- about $ 20 million a year -- is divided among various county departments, including education. But money raised through the increase would be dedicated solely for school construction.

 

NATIONAL

Rate of new construction surprises U.S. analysts: Record-setting November

Financial Post _ January 4, 2003 Saturday

http://www.nationalpost.com/financialpost

 

U.S. spending on new construction rose in November, boosted by continued gains in residential housing and greater outlays for road and school construction.
The Commerce Department yesterday said construction outlays rose a stronger-than-expected 0.3% to a US$843.2-billion annual rate. The pace of residential construction, at US$421.1-billion, set a record. November's surprise gain came on the heels of an upwardly revised October figure and may lead some economists to slightly boost estimates for economic growth in fourth quarter 2002. October construction spending gained 1%, up from a previously reported 0.3%.

ACROSS THE NATION

Connecticut

In budget crunch, Rowland would pay less for school projects

The Associated Press State & Local Wire _ January 01, 2003, Wednesday

http://wire.ap.org/public_pages/WirePortal.pcgi/us_portal.html

 

Gov. John G. Rowland wants the state to pay a smaller share of municipal school-construction projects, a move that would save the state hundreds of millions of dollars. The change would push more of the school construction costs on cities and towns. As part of a plan to lower the state's bonded debt, Rowland is asking the General Assembly to reduce reimbursement rates on new school projects by 10 percentage points for three years, from 2004 to 2006. The Republican governor's plan also would postpone hundreds of millions of dollars of approved school projects.

In addition, the governor is seeking cancellation of $111 million in non-school projects slated to be built in the next few years, including $9.5 million earmarked for an access road to promote development of Rentschler Field in East Hartford.

State law requires the governor and General Assembly to limit borrowing when tax revenues drop. As the economy has weakened, the cap on bonding has forced officials to scale back, delay or cancel many projects.

 

Articles compiled by Sujin Bae

Graduate assistant for the School Construction Funding Project

Van Munching Hall University of Maryland, College Park, MD 20742-1821

poissone@wam.umd.edu