Strike one against Montgomery's spendthrift strategy has been the reduction in the relative share of Federal government workers as a proportion of the Washington area's total workforce. For more than a decade private sector job growth has outstripped government, especially Federal government, jobs. Even though many private jobs are associated with government contracts, the increase in private jobs is leading to greater sensitivity to business climate considerations.
Strike two has been the movement of private sector jobs away from Montgomery County because of the county and state's hostile business climate. In just a very short time since 2007, Maryland has dropped to the fourth worst business climate in the country, according to the Tax Foundation. Fairfax County and the rest of Northern Virginia have consistently outpaced us in attracting private business jobs. Since the top income tax rate in Montgomery is 64% higher than it is in Fairfax, (9.45% compared with 5.75%), the decision of Northrup Grumman to relocate its headquarters to Northern Virginia came as little surprise to anyone.
It will also come as little surprise to Montgomery County residents commuting across the American Legion Bridge to work, that although Fairfax has only 60,000 more residents than Montgomery, Fairfax has 200,000 more jobs. Montgomery County's "job gap" is one of the major reasons we have among the highest average commuting times in the country.
Strike three has been the decline in the relative "value" of county services.
The Fairfax County public schools have long been competitive with Montgomery's. However we have fallen behind Fairfax County's average College Board scores. Within the state of Maryland, Howard County's public schools regularly outperform our county based on many measures of performance. In the most recent year for which numbers are available 12 of the county's 38 middle schools failed to meet all of their performance targets under the No Child Left Behind law. That compares with five schools the year before.
Yet Montgomery spends about 18% more per pupil and pays teachers 15% more than Fairfax. In fact, as a result of our higher teacher salaries, although Montgomery spends more per pupil, our class sizes are larger.[1]
In other service metrics the decline in our county's performance is even more striking. Montgomery County's rate of violent crime is three times that of Fairfax - 235 per 100,000 as compared with 78 per 100,000.
It is against this backdrop that the Montgomery County considered the 2011 budget.
Despite the compelling evidence of that their "business" model of high taxes for expensive services does not work; the Council opted to double down with their strategy of failure.
The Council voted to raise the energy tax by more than 80%. According to the Washington Post: "A resident who uses 2,500 kilowatt hours of electricity would see the monthly bill rise $20. The average annual residential energy tax bill would rise from $99 to $251. For nonresidential users, the average bill would increase from $2,619 to $4,042."
Council members increased cell phone taxes by 75% from $2.00 per line per month to $3.50 per line. They also passed a new ambulance fee. They voted a new carbon tax that will directly affect only a single taxpayer with a $15 million annual tab.
The arrogance of the Council is captured on YouTube, as Council Member George Leventhal attacked his constituents opposing these tax increases as "right-wing, grassroots Astroturf people who don't know anything. Then they add in anti-immigration wackos."[2]
Speaking on behalf of the "grass roots Astroturf people who don't know anything" that Council Memeber Leventhal has such contempt for, we know is that the Montgomery County government is already expensive, and getting more expensive, but it is not providing "value" in the form of services. It is time for a change in direction.
Mark Uncapher
Montgomery County Republican Chairman
[1] The Fairfax County Schools have a $2.2 billion budget, and 172,000 students for a $12,790 average. Montgomery spends $2.1 billion on 139,000 students for a $15,100 average per student.
[2]See: http://www.youtube.com/watch?v=Z7iyT9HEDZs "First Ever Carbon Tax in Us - Politicians Gone Wild" Special thanks to AFPMaryland for capturing it on tape.
MCGOP CONVENTION!