Million Surplus

The Maryland budget picture got even better yesterday as legislative analysts predicted the state will end this fiscal year with a surplus of more than $600 million.The projected surplus is in addition to the $320 million surplus the state accumulated in the last fiscal year, according to the analysis.The new figures, which were delivered to a committee of legislators and business leaders who set state spending limits, startled lawmakers who had grown seemingly accustomed to continually improving revenue statistics the past two years.

Maryland's budget situation is even rosier than previously reported, as revenues are expected to exceed forecasts by more than $200 million by the end of the month, a spokesman for Gov. Parris N. Glendening said yesterday.Legislative analysts had said last week that the surplus would top $100 million, but Glendening spokesman Michael Morrill said that figure was too conservative.Morrill said Glendening was likely to use much of the unexpected revenue on one-time needs such as building or renovating schools and working on the backlog of construction projects at state colleges.

The Maryland budget picture got even better yesterday as legislative analysts predicted the state will end this fiscal year with a surplus of more than $600 million.The projected surplus is in addition to the $320 million surplus the state accumulated in the last fiscal year, according to the analysis.The new figures, which were delivered to a committee of legislators and business leaders who set state spending limits, startled lawmakers who had grown seemingly accustomed to continually improving revenue statistics the past two years.

Faced with an $11 million deficit last winter, Baltimore school officials froze spending at schoolhouses, reduced overtime, left vacancies unfilled and begged the mayor for a bailout.The combined efforts worked so well the school system ended the year with a $2.7 million surplus, according to Roger Reese, the school's chief financial officer.But the city school board isn't dreaming of how it might spend the extra cash -- which represents only one-half of 1 percent of the budget.Most of the money will go back to schools that gave up field trips, deferred hiring teachers and cut back on library books, pencils and photocopies.

A healthy economy and a booming stock market have helped lift Maryland to a budget surplus of about $60 million, giving the Glendening administration a modest cushion as it begins putting together an election year budget.Although figures for the fiscal year that ended June 30 are not final, Maryland officials will be able to present news of the apparent surplus to the three leading bond rating agencies Tuesday as they meet to review the state's coveted AAA rating.Comptroller Louis L. Goldstein also will report to them that Maryland's economic growth, which has lagged behind the national rate in recent years, has caught up.Ray Feldmann, a spokesman for Gov. Parris N. Glendening, called the surplus "another indication that we are moving the state in the right direction."

GOV. PARRIS N. GLENDENING would be doing the wrong thing if he earmarked Maryland's $120 million surplus from the last fiscal year for new or expanded programs. That could set the stage for deficit woes down the road.Already, the governor has talked about costly initiatives funded by the surplus -- a pay raise for state workers, a multi-year plan for Prince George's County schools, enhanced health and education programs. That's not how this or any surplus should be handled.A surplus is a one-time occurrence.

The booming national economy and a rebounding local real estate market are expected to significantly increase Baltimore's tax collections and present an uncharacteristically rosy financial picture for the city this year, the chief budget analyst said yesterday.But some of the predicted $20 million surplus in revenue is being offset by overspending in several city departments.The Finance Department has ordered the Public Works, Recreation and Parks and Police departments to draft plans to curtail their spending.

An independent audit of Harford County Government shows the county in the black, with a surplus of $3.7 million at the end of fiscal year 1996.County Executive Eileen M. Rehrmann said the surplus, available to be rolled over into next year's budget, is the result of conservative planning.Among its other findings, the audit says the county has $10.1 million in a "rainy day" fund for emergencies and to protect Harford's AA bond rating, and $12.4 million earmarked for projects in next year's budget.

While leaders of neighboring jurisdictions are struggling with grim budget problems, Harford County is sitting on a $19.5 million surplus -- the result of overestimating expenses and underestimating revenue in the last fiscal year, officials said yesterday.James Jewell, county treasurer, told the County Council last night that Harford is in better shape because of its conservative management.The council members, who received an independent audit of the county's finances last night, agreed.

County Executive Robert R. Neall has left a nice housewarming present for his successor: a surplus of nearly $7 million.The finance office's annual audit for the 1994 fiscal year, which ended June 30, shows the county had $25.3 million left over. Much of that -- $18.4 million -- is spoken for in the current budget. Still, it leaves $6.9 million available."It'll be there for the next executive to use in the next budget," said Alfred Warfield, assistant financial officer. "We're trying to live within our means and keep a cushion there."

Maryland's prepaid college plan ended its fiscal year with a $52.4 million actuarial deficit, but the plan's financial outlook improved in the past six months with the help of a tuition freeze and stronger stock market returns. At the end of June, the plan had $445 million in invested assets and enough money to cover projected obligations for the next 16 years, said Joan Marshall, executive director of the College Savings Plans of Maryland, which oversees the prepaid plan. A year earlier, the plan had assets of $533 million and a $58.9 million surplus.

After renovating its fitness facilities in an attempt to compete with nearby LifeTime Fitness, the Columbia Association has posted a record number of membership sales for fiscal year 2006, helping the homeowners association reach a $5.4 million surplus. The membership revenue of $8.8 million exceeded last year's by $826,000, and that was partially because of "one-time extraordinary expenditures," including increased marketing and recent renovations, according to a report by Rob Goldman, the association's vice president for sport and fitness, that the association board received Thursday night.

In the span of just 12 months, Baltimore's city government has gone from predicting its worst financial year in decades to realizing its most prosperous stretch in recent memory. Gone are Mayor Martin O'Malley's dire 2004 warnings about deficits, tax increases and drastic service cuts. Today, as the City Council votes on the mayor's $2.32 billion budget plan for the next 12 months, his talk centers on surpluses, tax reductions and increased services. But there are also whispers: Has something else been afoot - politics, perhaps - in the city's sudden reversal of fortunes from a projected $45 million deficit for fiscal year 2005 to an expected $59 million surplus?

New DSS chief needs support to make reforms We were pleased to read in The Sun about the new director of the Baltimore City Department of Social Services "Rolling up his sleeves in new job" (April 17). The hiring of Samuel Chambers Jr. by Mayor Martin O'Malley, Gov. Robert L. Ehrlich Jr. and state Human Resources Secretary Christopher J. McCabe should bring hope to vulnerable children and adults, advocates and concerned citizens. Despite the good work of many committed and compassionate staff members over the years, DSS is in desperate need of reform.

For the first time in more than a decade, the Columbia Association failed to meet its annual budget goals because a new state law forced $1.9 million in refunds to property owners whose assessments skyrocketed last year. Despite falling $625,000 short of its budget projections, the association ended the fiscal year with a $3.8 million surplus. The General Assembly voted earlier this year to place a 10 percent limit on the association's annual revenue growth from rising property assessments.

Thanks to a late infusion of federal funds, Maryland ended one of its toughest budget years in decades with an approximately $122 million surplus -- less than half the amount it had on hand when it closed the books on the previous year. The final number on the fiscal year that ended June 30, released yesterday by the state Comptroller's Office, shows that the state would have had a $757,000 deficit if not for an infusion of $33.4 million in U.S. aid to the Medicaid program and $90.4 million in other federal money.

School board open-meetings case nearing an end After nearly three years of debate, the Circuit Court case alleging open-meetings violations by the Howard County Board of Education is nearing an end. "There is light at the end of the tunnel," said Judge James B. Dudley, who heard closing arguments in the case June 27. Allen Dyer, an Ellicott City lawyer and parent, brought the lawsuit against the school board in November 2000, claiming members continually and...

The Columbia Association closed fiscal 2003 with a $5.7 million surplus, nearly double the amount that had been estimated. The increase "significantly exceeds" the budgeted figure and is also ahead of last year's $5.3 million surplus, CA President Maggie J. Brown told the association's board of directors Thursday night. The association's $48.6 million income is essentially on target because it is less than 2 percent higher than budgeted, Rafia Siddiqui, CA's vice president for administrative services, told the board.

The Columbia Association's earnings for the first quarter, which ended July 31, indicate the homeowners association appears on track to end the 2003 fiscal year next spring with a $4.4 million surplus. That surplus would be about $1.4 million larger than budgeted - partly due to increased income and partly because of operating savings, association President Maggie J. Brown told the association's board of directors Thursday night. New construction in Town Center and higher-than-expected property reassessments are contributing to the income increase, Brown said.

The Columbia Association closed its fiscal year with a $5.2 million surplus - twice the amount that had been projected - despite losses at its four divisions. Unanticipated additional income from assessments and memberships helped push the homeowners association budget over its expected $2.6 million surplus, Columbia Association President Maggie J. Brown told the association's board of directors Thursday night. The association's total income for the fiscal year, which runs from May 1 to April 30, was $47.8 million - $735,000 more than expected.