Last Thursday, the Prince George’s County Council voted to raise property tax by 4%, generating $34 million for schools.

County Executive Mr. Rushern Baker first wanted to raise by 15.6%, however facing fierce opposition from residents, he asked about half of what he wanted.

The FY16 Budget includes the following highlights:
2% across-the-board cut in operating dollars to be placed in a contingency fund. This will slow County spending and reserve $15 million for hospital funding if Governor Hogan continues to break the state’s MOU to provide $15 million this year to the Prince George’s County Hospital.
Overall 67% reduction in the proposed 15.6% tax increase proposal to raise $34 million for the Board of Education’s PGCPS budget. This offsets the $30+ million (as of FY16) unfunded mandate of the state shifting teacher pension costs to the County and covers MOE.
$0.04 increase in the real property tax rate
$0.10 increase in the personal property tax rate
1% increase in the telecommunications tax
2% increase in the Hotel/Motel Tax to raise $3.1 million for the non-PGCPS portions of the budget (accepting the County Executive’s proposal).
Increase permit/license fee and street use permits to raise $7.16 million to assist in addressing the structural deficit and eliminate the proposed furloughs.
Address M-NCPPC shortfall with a $0.0150 increase (half of their request). This will still entail significant belt-tightening by the agency and stop some planned projects.