Thread:
The #BPW on Wed. will consider a proposal to flat fund the county Disparity Grant program. Unlike other state grants and "aid," the disparity grant is designed to promote equity across jurisdictions to overcome disparate tax bases. #MDpolitics (1/8)
The #BPW on Wed. will consider a proposal to flat fund the county Disparity Grant program. Unlike other state grants and "aid," the disparity grant is designed to promote equity across jurisdictions to overcome disparate tax bases. #MDpolitics (1/8)
The program promotes fiscal equity by providing noncategorical state aid to less affluent counties with proven local income tax effort. It serves to ensure that counties, who rely on LIT for substantial revenue, are able to generate sufficient yield to fund #education, (2/8)
public safety, roadway maintenance, and community services.
#Counties have made difficult tax rate decisions based on the state law governing these grants - to undermine them would be especially untoward even during times of mutual fiscal strain. (3/8)
#Counties have made difficult tax rate decisions based on the state law governing these grants - to undermine them would be especially untoward even during times of mutual fiscal strain. (3/8)
Recent years have seen State-imposed “caps” in this program that artificially lessen the effective revenue from such jurisdictions, including those who have exercised the maximum county income tax rate. (4/8)
Over the past 5 years, cap provisions have reduced state funding under the program by approx $233 million.
While counties recognize the importance of ensuring the structural soundness of the State’s budget, counties, too, are grappling with unprecedented budget shortfalls (5/8)
While counties recognize the importance of ensuring the structural soundness of the State’s budget, counties, too, are grappling with unprecedented budget shortfalls (5/8)
@MDCounties advocates for a balanced approach that would not result in shifting the tax burden onto the counties, or simply shifting from one revenue source to another. (6/8)
The State will not resolve economy-driven budget pressures by shifting costs to another level of government facing the same pressures. (7/8)
Cutting the disparity grant program will have a disproportionate effect on less affluent counties and exacerbate pressures at the local level by undermining county revenue structures and support for education, public health, public safety, and other essential services. 8/8)
