Income Tax Revenues

The happy coincidence of an economic boon this election year has enabled Anne Arundel County Executive John G. Gary to propose a 2-cent property tax cut and $59 million in new spending, including increased school and police funding and $12 million more for construction projects.But Gary said yesterday that his plan is not an election-year gift to taxpayers. Now is simply the time that income tax revenues have increased.His rival for the county executive seat, Councilwoman Diane Evans, however, cautioned against over-ambition: "We don't want to overextend ourselves," the Arnold Democrat said after Gary's budget address.

CA to study lowering assessment rate as much as 20 cents The Columbia Association will begin studying the economic effects of lowering the assessment rate as much as 20 cents, to 53 cents, to ease homeowners' burdens from sharply rising home values. The annual assessment charge, which is based on property values, is 73 cents per $100 of valuation assessed on 50 percent of the fair market value. On Sept. 25, the association staff told the association board that if the rate was lowered to 71 cents, the association probably would be debt-free by 2015.

The weather outside may be cold, but county officials maintain that Howard's economic outlook is warm and rosy. Office vacancies are down sharply, job growth is predicted to be strong and unemployment is low, and Howard's coveted AAA bond rating was recently reaffirmed by three New York bond rating houses. That means the county's bonds can attract the lowest interest rates - under 4 percent - and have the lowest risk factor. Fewer than 20 counties of 3,000 nationally have the top rating.

One year after dire economic forecasts forced local governments to rein in spending, city and county leaders in the Baltimore area are finding themselves suddenly -- and unexpectedly -- flush with cash. With multimillion-dollar budget surpluses cushioning government treasuries, the region's county executives and Baltimore Mayor Martin O'Malley are planning for construction projects, replacing aging equipment or adding money to programs designed to spur economic development. "This is an unusual, short-term opportunity for us, and we are not alone," said Ted Zaleski, director of management and budget for Carroll County, which is expecting a $21 million surplus.

Howard County could see a slight revenue shortfall this fiscal year instead of the $12 million surplus predicted a year ago, but the worst news may yet be coming, officials say. With state budget cuts looming amid a struggling economy, county budget director Raymond S. Wacks described an uncertain revenue picture to the County Council in a briefing this week. "It's been a roller coaster of a summer," Wacks said. "Who knows how many more bumps in the road are facing us?" Wacks spoke to the council Tuesday morning - its last meeting in the George Howard Building before renovations prompt relocation to rented space in a Columbia office building.

Western County Councilman Allan H. Kittleman's words brought a red-faced Howard County Executive James N. Robey out of his seat on the stage of Bushy Park Elementary school's auditorium Monday night. "We lost $40 million [in future income tax revenues]. Where did that go?" Kittleman, a Republican who voted against higher income taxes, asked the more than 150 parents there to debate their crowded, 27-year- old school's future. Amid partisan bickering over the county's continued budget woes and the big income tax increase championed by Democrat Robey, the executive is trimming government spending to get through yet another leaner-than-expected year, he said.

Baltimore County's new executive, council and court officials will be sworn into office tomorrow with high hopes but empty pockets, as lower than expected income tax revenues eat holes in the county's budget.The incoming executive, C. A. Dutch Ruppersberger III, and seven councilmen will take the oath of office on the fountain plaza between old and new Towson courthouses at 11 a.m., weather permitting.In the event of rain, the swearing-in will take place in the ceremonial courtroom in the old courthouse.

County officials expect a drop-off in income tax revenue from this fiscal year to next, something that's happened only once since the county began collecting the tax in 1964. News of the possible decline in income tax revenue, the second-largest portion of general fund revenue, was delivered by county budget director Raymond S. Wacks last week during a meeting of state legislators and Ulman administration officials. County leaders are still awaiting word on whether another round of state budget cuts to local governments will materialize as Gov. Martin O'Malley works to solve the looming shortfall.

Maryland's state government raked in 5.8 percent more money in personal and corporate income taxes during the fiscal year that ended June 30, Comptroller Louis L. Goldstein reported yesterday.He said the increase over fiscal 1993 -- driven by a 31.4 percent jump in corporate income taxes -- is proof that Maryland is shaking off the after-effects of the recession. The total was slightly higher than state projections.But the announcement met with skepticism from economists, who said the rebound in corporate tax receipts was so sharp only because the recession was so deep here.

Despite faint signs of an economic recovery, the state's 1991 budget woes continue with the latest bad news coming from a projected shortfall of more than $20 million in income tax revenues.Based on the latest review of income tax reports, Schaefer administration budget analysts now say the state may not get the full $2.97 billion they had counted on from taxes on wages and other earnings.While $20 million-plus in an overall $11.6 billion state budget would be less significant in healthier economic times, the unexpected shortfall could pose serious new threats to the fiscal 1991 spending plan, which Gov. William Donald Schaefer already has cut by about $554 million to keep the budget balanced.