Presentation on theme: "Baltimore’s children are being threatened And BUILD will answer the call."— Presentation transcript:
Baltimore’s children are being threatened And BUILD will answer the call
How do we fund schools in Baltimore?
Why the disparity?
What are the proposed cuts to Baltimore City Public Schools? 1.Cut the Geographic Cost of Education Index (GCEI) in half. 2.Eliminate the Inflation Factor (which automatically increases funding each year) for 2015 and cap it in future years. 3.Give less money through the state funding formula to Baltimore City because of a “wealth increase” in Baltimore.
What is the GCEI Cut? $11.5 million
What is the Inflation Factor Cut? $10.2 million
Who can change those two cuts? Governor Larry Hogan He can be impacted by our legislators working together
The third cut: Baltimore’s “wealth increase” - $13.7 million The State calculates how much money it will give each year based on a county’s wealth. Wealth is mostly based on the value of property in a given place. By the funding formula, Baltimore’s wealth has increased significantly as compared to the rest of the state. So whose wealth has really increased?
What’s a subsidy? Subsidies are designed by the government to encourage development in areas that would not otherwise be developed. They allow developers to not pay property taxes as their property value increases. However, subsidies are not always used responsibly…
How has BUILD used subsidies? BUILD uses subsidy! Subsidies have allowed us to rebuild Oliver
How has the City used subsidy?
Harbor East Marriott Waterfront Hotel Value: $155 million Subsidy: Pay $1/year in taxes from Cost to City Schools: $1.4 million in state aid next year
Lockwood Place Value: $58 million Subsidy: Tax break of up to $1.5 million/year Cost to City Schools: “hundreds of thousands” in state aid
Zenith Luxury Apartments Cost: $40 million Subsidy: Pay 15% of property taxes Cost to City Schools: “hundreds of thousands” in state aid
Who Continues to give out new subsidies? The Mayor, Stephanie Rawlings-Blake.
Who’s Responsible for the $35 million in cuts?
What about the $60 million deficit? Three main drivers: – Salary pressures created with 2010 performance- based teachers contract. – School board policy to return approximately $27 million to “rainy day” fund – Additional $13 million to support school construction
New CEO pledges to fix the deficit One thing is clear – now is not the time to add state cuts. Our children cannot afford it!
Where do we go from here? Join BUILD as we: Unite the Baltimore City Delegation – 8:30am tomorrow, leaving Baltimore at 7:30am – March 6, 8:30am, leaving Baltimore at 7:30am Target the Governor – Board of Public Works meeting – March 4, 10am; March 18, 10am Annapolis Urge the Mayor to convene developers to keep funding for Baltimore City children whole