Maryland's alms for the rich

Originally published in the Daily Record

Thomas A. Firey Nov 18, 2015

Maryland politicians claim to be a progressive lot, concerned about income equality and the working class. But once they’re inside the halls of government, they work to deliver money and other goodies to the wealthiest parts of the state, at the expense of lower-income areas. To hide this regressive redistribution, the politicians disguise their machinations behind clever names and cover stories.

One of those efforts geared up in Annapolis this month, when state lawmakers and local leaders from some of Maryland wealthiest areas renewed efforts to get $68 million in special state subsidies for their schools. The clever name for this regressive scheme is the “Geographic Cost of Education Index” (GCEI). Adopted in 2002 as part of an overhaul of Maryland’s school funding system, the GCEI supposedly helps high-cost jurisdictions with their education expenses. However, it is engineered to award most of its money to the highest-earning parts of the state, and those subsidies grow as that wealth increases. Country club memberships and golf course fees are expensive after all, so the miserable rich need help from state taxpayers.

Last spring, Maryland faced a quickly developing budget deficit along with the chronic problem of the state’s long-underfunded pension system for teachers and other public workers. Using a provision in the education funding law, Gov. Larry Hogan diverted $68 million in GCEI money to those problems instead of to the rich counties.

Fortunately, the state’s finances have improved over the past several months, and now the rich areas’ politicians want their handout. “Give the money back to the kids,” growled State Senate President Thomas “Mike” Miller of Calvert County, which would get $1.1 million even though its annual median household income is $95,477, nearly double the national median of about $53,046.

“Make sure the resources are there for every child in the state of Maryland,” demanded House of Delegates President Michael Busch of Anne Arundel County, which would get $4.8 million and has a median income of $87,430.

“The time is now to release education funding,” pleaded Frederick County Executive Jan Garder, whose county would get $3.3 million and has a median income of $84,570.

However, the real winners of the GCEI bonanza are Prince George’s and Montgomery counties, which would receive $20.3 million and $17.7 million despite median incomes of $73,623 and $98,221, respectively.

In fairness, not all GCEI recipients are undeserving. Baltimore City has a median income of only $41,385 and faces heavy school costs because of the city’s density and other factors. Baltimore can certainly use the $11.7 million it would receive from GCEI. But other poor Maryland jurisdictions like Somerset ($38,447), Allegany ($39,293), Garrett ($45,208) and Dorchester ($46,361) get squadoosh.

Meanwhile, aside from Baltimore, it’s hard to find a GCEI jurisdiction that appears deserving. Most of the school systems that receive the subsidies are literally among the wealthiest political subdivisions in the world and would appear to be more than capable of providing for their schools. They needn’t go to Annapolis, hat in hand, groveling, “Brother, can you spare a dime?”

In the name of economic fairness, the regressive GCEI should be ended, save for help for Baltimore City. But instead of that, Maryland’s leaders — with Hogan’s acquiescence — have passed legislation making the regressive subsidy mandatory. That legislation didn’t cover 2015, however, which is why politicians from the rich jurisdictions are now rallying for that money.

And they’ll likely get it, because the state’s wealthy jurisdictions are also the most politically powerful. That’s the way things work in ostensibly progressive Maryland, where the rich need help educating their children. Perhaps their next initiative will be chateaubriand in every pot and a Lexus in every garage.

Thomas A. Firey is a senior fellow of the Maryland Public Policy Institute.