Senate offers compromise on taxes, pension shift to lift budget stalemate with House

The stalemate on the $35 billion budget between the House of Delegates and Senate shifted somewhat on Thursday evening, as senators offered a compromise on taxes and the teacher pension shift to the counties. This compromise leaves rates alone for people making less than $100,000, and has steeper increases for people in higher income brackets.

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Senate budget plan includes tax hikes for all, pension shift to counties

The Senate Budget and Tax Committee on Thursday sent a $35 billion budget to the full Senate that includes income tax increases for almost everyone and $600 million in ongoing spending cuts.

This fiscal 2013 spending plan includes a shift of teacher pension costs to county school boards, along with new requirements for county governments to fund public schools, allowing them to even disregard local property tax caps to do so.

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Teacher pension shift would cost counties $500 million over next four years

In the Senate’s proposed budget plan, some of the costs of teacher retirement would be shifted to county school boards over the next four years, not to the county governments next year, as Gov. Martin O’Malley had proposed. But the approved proposal would ultimately force counties to give their school boards $500 million more over the next four years.

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