Capital Projects

The Capital Debt Affordability Committee, dominated by appointees of Gov. Martin O'Malley, raised the state's debt limit by $150 million Monday over the dissent of Comptroller Peter Franchot. The move increases the state's capacity to borrow money for such projects as roads and school construction from $925 million to $1.075 billion. The committee's action in effect borrows lending capacity from the future, saying the extra spending during the coming budget year should be repaid in 2017.

Local government is truly where the rubber meets the road. As Baltimore County executive, I proudly oversaw capital projects ranging from the restoration of the Randallstown Library after a fire to the expansion of Cromwell Valley Park. We rebuilt Essex Elementary School and constructed a new interchange at I-795 and Dolfield Road in Owings Mills. We were able to pay for these and dozens of other projects - which improved the everyday lives of thousands of people - with the help of tax-exempt municipal bonds.

The Hayden administration has temporarily frozen spending for any new capital projects as part of Baltimore County's effort to save money and get through the recession.County Administrative Officer Merreen E. Kelley issued the order on Oct. 30, but County Executive Roger B. Hayden today said he will review all pending capital projects by Nov. 30 and will approve funding for any that have a large impact.Budget Director Fred Homan said the move came after he determined that county departments are already under contract to spend $46 million to $48 million on capital projects.

The state has a long list of public-works projects but little money. The private sector is willing to invest but has been starved for work. From that simple equation comes a business model called public-private partnerships — or P3s — that Maryland hopes will help alleviate its backlog of transportation and other infrastructure needs. The O'Malley administration is expected to unveil legislation this week that would offer a channel for tapping into a reservoir of corporate money and expertise.

Harford County ventured into the bond market Tuesday for the first time in eight years to raise money for capital projects.The countyborrowed a total of $22 million: $13.1 million for eight capital projects, including two new public schools, and $8.9 million to pay for water and sewer system improvements.For eight years, the county used available cash to pay for capital projects, such as schools or building renovations, instead of borrowing money for those projects.The county did borrow money during those eight years for water and sewer projects, but those bonds did not increase the county's long-term debt because they are being paid off with user fees.

The county executive has proposed killing five capital building or improvement projects to save more than $720,000.The largest project County Executive Eileen M. Rehrmann has proposed cutting is a new animal shelter for the county Humane Society -- one of the last capital building projects approved by the former council.If the County Council approves killing that project it would savean estimated $500,000.The savings are needed because the county must end the fiscal year, June 30, with a minimum of $4.5 million in its coffers to protect the coveted AA bond rating awarded the county by Moody's and Standard & Poor's, two bond rating houses.

Carroll commissioners may have to consider raising the piggyback tax to pay for essential capital projects such as roads and schools, Planning Commission members said yesterday.The budget has been cut to the "bare bones," member Dennis P. Bowman said."We even took the marrow from the bones," member Louis J. Pecoraro added.The Planning Commission recommended yesterday that the county spend $11 million in local money on capital projects in fiscal 1994 -- $2.5 more than is available.In addition to the county money, the budget includes $15.6 million in state, federal and other revenue -- from such things as impact fees -- for capital projects.

The Carroll County government will have to unload its obligations supporting enterprise fund debts to clear the way for bond sales to build roads, bridges and schools, the county finance director advised the commissioners yesterday."

The Columbia Council agreed last night to spend up to $25,000 to hire a consultant to evaluate the Columbia Association's procedures in awarding contracts for capital projects.The nonprofit association is not subject to competitive bidding laws that apply to government but has its own internal policies for soliciting bids and hiring contractors for construction projects.Councilwoman Norma Rose, who made the proposal last night, said in an interview Wednesday that it's "not all that clear" how contracts for design or construction work are awarded and that "there is a sense that procedures need revision."

Department heads have told Howard County Executive Charles I. Ecker they want $108 million in capital projects -- $14 million more than they asked for last year and $34.7 million more than what they were actually granted.Their requests for fiscal 1994 were forwarded to the Planning Board on Monday for its perusal. The board will conduct a public hearing on the requests Feb. 18.A majority of projects, $67 million worth, would be financed through the sale of general obligation bonds.The county's bond affordability committee, which recommends ceilings on bond sales, has yet to issue a report for the coming fiscal year.

Anyone who believes that political stalemate over raising taxes or a preference for deferring hard choices were problems unique to Congress has probably never been to Annapolis. Even when one party dominates both chambers, as the Democrats do in the Maryland State House, lawmakers are all too frequently loath to stick their necks out for anything controversial if there's any possibility it might be postponed. Witness last week's debate over Maryland's transportation finances and the possibility of raising the gas tax. Everyone seems to recognize that the status quo is wholly unacceptable.

When Marylanders cast their ballots on Election Day, they said "yes, you can" to same-sex couples who want to get married, to young people whose families immigrated here illegally and who hope to receive in-state tuition, and to casino operators who want to expand their operations here. Now, as we move forward from this election, it's time to say "yes, you can" to another group of Marylanders who are no less deserving of affirmation: public school students from underserved communities.

Baltimore County is bracing for another tough budget year, delaying new construction and improvements to infrastructure while looking for other ways to save. But County Council members and County Executive Kevin Kamenetz's administration say they don't plan to raise taxes to bring in more revenue. The county has not raised property taxes for 23 years, said Kamenetz's chief of staff, Don Mohler. Its income taxes haven't risen for 19. Kamenetz hopes to continue that run, Mohler said.

Columbia Association board members heard requests from residents and village board members, ranging from security improvements to upgrades to aging infrastructure, at a public hearing on how to spend the homeowner group's nearly $60 million annual budget for the next two years. Many of the representatives of the 10 villages that make up Columbia expressed interest in additional security at village offices, while others want funding for upgrades to facilities. Many asked for lake dredging to remain a top priority.

Gov. Martin O'Malley wants to spend nearly $23 million to improve Maryland's often-maligned state parks, proposing widespread renovations for a system that critics say has been deteriorating for more than a decade. The money would go toward highly visible projects at some of the state's most visited public spaces. Among other improvements, it would renovate shabby bathhouses at Assateague State Park near Ocean City , repair the lighthouse complex and parking lots at Point Lookout in Southern Maryland, and replace a fishing pier at North Point State Park that was severely damaged by Tropical Storm Isabel in 2003.

The Capital Debt Affordability Committee, dominated by appointees of Gov. Martin O'Malley, raised the state's debt limit by $150 million Monday over the dissent of Comptroller Peter Franchot. The move increases the state's capacity to borrow money for such projects as roads and school construction from $925 million to $1.075 billion. The committee's action in effect borrows lending capacity from the future, saying the extra spending during the coming budget year should be repaid in 2017.

Carroll's Planning Commission will recommend next week that the county spend about $11 million on capital projects in the next fiscal year -- about $2.5 million more than is available.The panel will also recommend to the county commissioners on Tuesday that the county pay for 29 projects totaling $6.5 million if other money becomes available."You're basically fighting to keep your head above water at this point," commission chairwoman Barbara Jean Dixon said.At a work session yesterday, Planning Director Edmund R. Cueman suggested the county sell more general obligation bonds to increase the amount of money available for capital projects.

Unless town department heads are willing to slash their wish lists for equipment and programs, residents are likely to pay more taxes next year as the battle of the budget looms.During a workshop session before the regular Town Council meeting Monday night, officials discussed 1991-1992 revenue and a proposed 5-cent property tax increase."We looked over the tax audits for the last three years, took into consideration the economy, and stayed with a conservative budget," said Town Manager James L. Schumacher, who drafted the budget proposal with Clerk-Treasurer Vincent J. Diffenbaugh.

Anne Arundel County government has saved $38 million in contracting costs for construction projects in the past year, officials announced Monday. The six percent in savings on $615 million in capital projects, through decreases in “change orders,” was achieved through several measures, including revisions to the negotiation process between the county's Department of Public Works and design consultants. The county also hired, with the approval of the County Council, two project control specialists, whose job is to scrutinize change order requests.

The Maryland General Assembly's chief budget analyst, Warren Deschenaux, made headlines last week by advocating that the state not seek to increase its debt limit for fear that such a move could prompt one or more of the major credit ratings agencies to strip the state of its long-held AAA rating. Such a downgrade would force Maryland to pay higher interest rates on its debt and exacerbate its existing budget problems. Mr. Deschenaux is absolutely right about that, but his comments should not be misconstrued.