Dec 15 08 11:49a 900-000-0000 pel CEA MONTGOMERY COUNTY EDUCATION ASSOCIATION 60 Wieet Gude Drive « Rocce, Maryland 20850 » 301-794 MGEA + Fax 401-508-2569 ‘ncmeeanesiorg - helodosiémoea jea.o0 Bonnie Cuz, President Thomas vad, Ecutive Director Montgomery County Delegation to the General Assembly Public Hearing Proposal for Split Property Tax Rate Authority in Montgomery County MC906-09 December 11, 2008 Testimony of Bonnie Cullison, MCEA President vening, My name is Bonnie Cullison, {am president of the Montgomery County ion Association, representing the 12,000 teachers and other non-supervisory professional educators working in our schools every day to help our students learn and grow L wish to submit our testimony in support of House Bill MC906-09. The MCEA Board of Directors has voted — unanimously ~ to support this initiative. As educators, we are aeutely aware of the challenges our communities — and our elected officials ng the resoure ary to support our schools and other public servic, Everyone wants even better schools for our children, but not everyone is willing to accept the responsibility to pay for them, Our elected officials are in the eye of the storm of the ongoing dchates over taxes versus serv face in rai nee, Weare all aware of the recent passage of Question B ~ the so-called Ficker Amendment, Let's be clear: out of nearly one million residents in Montgomery County, Question B passed by a mere 613 votes. This is hardly a mandate or a tax revolt, But it does evidence the growing concern among homeowners about the inereasing property tax burden, We believe that 906-09 is about tax fairness, We believe that 906-09 is the right thing to do t0 censure that our schools will continue to have the revenue bases they need “‘s taxes. I[there are constituencies testifying against this bil! because they don’: want to pay higher taxes ~ they are missing the mark. You do not set property tay rates ~ the County Couneil does. Every spring, the Couneil sets property tax rates, and this bill doesn’t change that, The County Council is the foram where the needs of competing constituencies are balanced and decisions are made This bill does not rai bods Teachers Working For Quality EducationDec 15 08 11:49a 900-000-0000 pee conn linked Fhaase ve any arguments for why they Sill biked _ Think of this in reverse. Supposs you yre an, elected official in northern Virginia or the District of Columbia (-sbere residential an commercial rates are not inked) and special interest groups canie tw you to propose that they be linked ~ that residencal and commercial properties be taxed at the same rates. What would be rationale for that? There is none that | can think of. The residential and como:crcial property markets are completely different. Montgomery County already has different assessment appeal processes for residential and commercial rates. Nobody likes to pay higher taxes. But this bill doesn’t raise taxes. The question before you is whether to give the County Council the flexibility to delink residential and commercial property tax rates, nthese two different kinds of property should he treated identically. sno re This is about education funding, Nothing in this bill changes Montgomery County's new, strict cap on increases in total property tax rev: But passage of Question B doesn’t end the debates in the county about the property tax burden on homeowners. In the coming years, debates over the property tax burden will ~ for the most part ~ be about property tax rates under that cap. By providing the County. with the flexibility to set different tax rates for commercial and residential property, the C ability to raise more revenue for education and other public services, without increasing residential property t ‘much When homeowners call out for property tax relief, current law requires that the Council cut the rate for large commercial property owners if they want to cut it for retirees on fixed income. And the result is that our schools get less money. With the authority granted in this bill, the Council could provide targeted property tax relief to homeowners, without as great a loss in overall revenue for our schools. This bill may also make it easier for the County Council to exceed the property tax cap when it cessary, Getting a unanimous vote of nine Council members to exceed the cap will never be easy. _When we are faced with dire circumstances, Therefore, we believe that passage of 906-09 will establish a fairer property tax system that will do a better job of providing funding for our schools and other essential public services.