Department cuts, higher telecom tax: What's in Prince George's budget proposal

Prince George's County faces a massive budget deficit that's only expected to increase in the coming years.

Acting County Executive Tara Jackson outlined her budget plan Thursday, attempting to close a $170 million projected shortfall.

The proposal includes a telecommunications tax that would raise millions of dollars and cuts to most departments. Jackson also warned of uncertainty ahead because of state budget cuts and the elimination of federal jobs and programs under President Donald Trump’s administration.

“This is the most difficult budget that I have faced,” Jackson said during the budget presentation.

The telecommunications tax on cellphones would be an additional $2.50 per month, making it a total of $3.50 for each phone line. The tax increase would generate $37 million annually.

The proposal also includes reductions to stormwater and litter collection programs, cuts to most departments excluding public safety, and the elimination of CTV — the county's cable television station.

“Residents will feel these cuts, but they will help us maintain the fiscal responsibility that’s needed to protect our community,” Jackson said at Thursday's presentation.

Jackson said the county faces uncertainty as Maryland grapples with billions of dollars in cuts and a projected shortfall. With the Trump administration’s cuts to the federal workforce and programs, there's fear the county budget will take more hits.

More than 70,000 county residents work for the federal government, and the county receives about $260 million in federal grants.

“We must be extremely careful because of the unexpected,” Jackson said.

Jackson also spoke about the challenges of funding state-mandated increases to education called Blueprint funding. The county is looking at a possible $45 million increase depending on what the state legislature approves this session.

“We are committed to providing high-quality education for our children, but we also maintain our position that the program costs are not sustainable long term,” Jackson said.

She said she was careful not to take too much from the county's reserves, only using about $10 million for one-time expenses.

“We do know that in times like this, you tighten up and you don't spend what you don't have,” Jackson said.

She told reporters her budget would also delay implementation of a senior tax credit if the Prince George’s County Council passes it. The council’s vice chair, Ed Burroughs III, championed the legislation, which could cost the county $13 million.

“I'm not going to support you continuing to give developers who don't live here tax breaks but deny the seniors who built this county tax breaks, and so we have to make sure that we’re being consistent and fair,” Burroughs said.

The county currently has a hiring freeze, and the phone tax increase must be approved by the council.