Prince George’s County could be on the hook for nearly $100 million annually in a decade under Maryland Gov. Martin O’Malley’s proposal to shift half the cost of teacher pensions onto local jurisdictions, according to the county’s estimates.
The county’s government pension contributions would rise faster than Social Security costs, now the responsibility of the Prince George’s County school board, in 10 years, according to data from County Executive Rushern Baker’s office.
Assuming that pension contribution rates rise 5 percent a year, the split remains at 50-50 and the county’s expenses for teacher salaries will rise with new hires and pay raises, the county government would be responsible for $97.6 million in pension costs by 2022, estimates show.
| Teacher pension costs (in millions) | |||||
| Year | Total cost | State share | County government share | Shool board share | |
| 2013 | $204.4 | $102.2 | $34.1 | $68.1 | |
| 2014 | $218.6 | $109.3 | $38.8 | $70.5 | |
| 2015 | $233.9 | $116.9 | $44.0 | $73.0 | |
| 2016 | $250.4 | $125.2 | $49.7 | $75.5 | |
| 2017 | $268.2 | $134.1 | $55.9 | $78.2 | |
| 2018 | $287.4 | $143.7 | $62.8 | $80.9 | |
| 2019 | $308.2 | $154.1 | $70.4 | $83.7 | |
| 2020 | $330.6 | $165.3 | $78.6 | $86.7 | |
| 2021 | $354.8 | $177.4 | $87.7 | $89.7 | |
| 2022 | $380.9 | $190.5 | $97.6 | $92.8 | |
| Source: Prince George’s County Executive’s Office | |||||
“It’s definitely going to be a significant challenge for us, especially given that type of projected growth,” said Thomas Himler, the county’s deputy chief administrator for budget, finance and administration. “We’ll be challenged to have revenues that match that type of growth. We’re going to continue to do everything we can in Annapolis to resist this.”
O’Malley has proposed shifting half the state’s $900 million pension tab onto counties next fiscal year to help close Maryland’s $1.1 billion budget shortfall in fiscal 2013.
But for a county with understaffed agencies that are already being told to prepare for budget cuts thanks to its own $126 million budget gap, the effects of shifting teacher pension costs could be dire, Baker warned Prince George’s County state senators last week.
Prince George’s is struggling to close the gap as is. The foreclosure crisis in the county — Prince George’s has the highest foreclosure rate in the state — has decimated property values, the county’s main source of local revenue.
