Monthly Archives: October 2020

Adam Pagnucco, Economy, Unemployment

Instability Continues at WorkSource Montgomery

By Adam Pagnucco.

WorkSource Montgomery (WSM) is a non-profit designated by the county government as its workforce development organization. WSM helps match job seekers with employers through its job centers and a range of other services designed to enhance the functioning of the county’s labor market. It is funded with a combination of federal, state, county and private money. But at a time of the greatest need for its services – a devastating recession – WSM is in a leadership crisis that the county council is blaming on County Executive Marc Elrich.

The council’s dissatisfaction with WSM peaked last year after a number of revelations suggested that the organization was struggling to fulfill its mission. The council responded by passing legislation enabling – but not mandating – the designation of a “public educational institution” as the county’s workforce development organization, thereby potentially revoking WSM’s portfolio. The public educational institution the council had in mind was Montgomery College, but to date, my sources tell me that the college has not taken over WSM’s work. WSM survived but its CEO announced her resignation in August 2019.

Eventually, WSM landed Leonard Howie as its interim CEO. Howie is a well-regarded former state labor secretary who also held senior positions in the U.S. Department of Labor. The council enthusiastically supported him and told the executive branch that they wanted Howie hired as the full-time CEO. Technically, the CEO reports to WSM’s board but informally the county executive has influence over the hiring process. Furthermore, WSM’s relationship with the executive branch is critical to its ability to operate. The council was optimistic that Howie could get WSM to a better place.

But something went wrong and Howie is leaving. Multiple sources report that Elrich wanted another candidate to be considered but that person withdrew. According to the council, when WSM offered the full-time job to Howie, he also withdrew. Now WSM is back to square one.

Three council members – Sidney Katz (the current council president), Craig Rice (the education and culture committee chair) and Hans Riemer (the planning and economic development chair) – wrote a blistering letter to Elrich accusing him of fumbling the ball. This quote from the letter conveys its tone:

As the County’s highest elected official, you are directly chartered with great responsibility for our workforce programming by the Federal and State government. To be here at this point, without a permanent CEO for Worksource Montgomery, with a skeletal staff and few if any programs in place during a period of unprecedented workforce change and high unemployment is causing tremendous distress for county residents, and is unacceptable.

Wherever the responsibility lies, the tumult within the agency is a huge problem for the county. According to the U.S. Bureau of Labor Statistics, MoCo’s unemployment rate was 6.8% in August – lower than the 9.0% reported in May but still double the county’s pre-COVID rates. Nearly 39,000 county residents are unemployed and seeking work. WSM’s functions are more badly needed than ever. In the wake of this incident, what highly qualified applicants will be interested in leading WSM now? That’s a question that has to weigh heavily on the county’s leaders.

The letter from Katz, Rice and Riemer to Elrich is reprinted below.

October 6, 2020

County Executive Marc Elrich
Executive Office Building
101 Monroe Street, 2nd Floor
Rockville, MD 20850

Dear County Executive Elrich:

As the Council President and Chairs of the Council Committees charged with overseeing workforce development policy in Montgomery County, we were disturbed to learn that Leonard Howie, former Maryland Secretary of Labor and presently the Interim CEO of WorkSource Montgomery (WSM), recently declined the organization’s offer to be named full-time CEO.

Since Mr. Howie was first announced as Interim CEO, Councilmembers have repeatedly and publicly expressed great confidence in his leadership. We have stated our belief that he has the ability to get our workforce programming back on track from the debilitating crisis of the past year and a half. Not only have Council members noted Mr. Howie’s capabilities, but when we were consulted in July about how we wanted to participate in a hiring process for the position, the Council communicated to your office and WSM’s chair our strong support for hiring Mr. Howie rather than reopening a hiring process.

Since learning about his planned departure, Councilmembers have heard conflicting information about the search process and reason for Mr. Howie’s decision. To discuss this issue and your process to ensure the County’s workforce development system is well-positioned for our residents as we seek to recover from COVID-19, a joint Planning, Housing, and Economic Development (PHED) and Education and Culture (E&C) committee session is tentatively scheduled for 1:30pm on Wednesday, October 28.

As the County’s highest elected official, you are directly chartered with great responsibility for our workforce programming by the Federal and State government. To be here at this point, without a permanent CEO for Worksource Montgomery, with a skeletal staff and few if any programs in place during a period of unprecedented workforce change and high unemployment is causing tremendous distress for county residents, and is unacceptable.

Below are questions that we ask you and your staff to answer in preparation for the upcoming meeting.

Please provide written responses before the meeting, so we can include them in the public record.

The Council has been actively and deeply involved in enhancing and improving our workforce development system. The second section of the memorandum details our more recent work for your reference.

Questions regarding WSM’s CEO search and future direction

● Can you provide a list of the actions your administration took to address the deficiencies in the County’s workforce development system from the announcement of Dr. Giles resignation as the WSM CEO to the announcement of Mr. Howie’s decision not to accept the position?

● What instructions did you or your staff provide to the Workforce Development Board regarding the CEO position for the organization?

● What were the reason(s) that Mr. Howie shared for his decision to not accept the board’s offer to be CEO of WSM?

● Does the Workforce Development Board have any additional vetted candidates for the CEO position?

● If there are no additional vetted candidates for the CEO position, what is the anticipated timeline and approach for the new CEO search?

● If a new CEO search must be conducted, what is your administration’s strategy and approach to ensure continuity in the organization’s mission and obligations?

● What is the status of the “combined” Workforce Development Board and the WorkSource Montgomery Board?

● What is your administration’s strategy and approach, generally, to the County’s workforce development system?

A recent history on the Council’s efforts to enhance the County’s workforce development system

The Council and its committees have conducted several discussions and worksessions on this topic since the new Council was elected in 2018. Below is an abbreviated history of the major items that were before the Council or its committees. This list does not include the numerous meetings between you and individual Councilmembers and our staff about this topic.

● The Council discussed the workforce development continuum on March 5, 2019. Many Councilmembers communicated their disappointment at the quality of the efforts of WSM since its inception in 2015. The Council indicated its support of reconstituting the Workforce Development Board as an immediate action by your administration to “right the ship.”

● To strengthen the Correctional Facility job center, the Council added resources to the Department of Corrections and Rehabilitation (DOCR) budget in the FY20 Operating Budget. Following the March 5, 2019 discussion and subsequent follow up by WSM, the Council was not satisfied with WSM’s efforts with the Correctional Facility’s job center and provided these critical resources to DOCR.

● The Council adopted legislation to expand its options to designate the County’s Workforce Development Entity in October 2019. The Council continued to be dismayed at the lack of urgency from your administration and WSM’s leadership to address the issues plaguing the County’s workforce development system. This legislation provided an option to change the designation of the workforce entity to a new organization should Council action be required.

● The joint committees (PHED and E&C) discussed an update with WSM and Mr. Fletcher, Assistant County Administrative Officer, on November 19, 2019. After nine months of engagement, it was unacceptable to learn from Mr. Fletcher that the executive branch lacked a detailed vision and that efforts to reconstitute the Workforce Development Board were still in process.

● The Council in various resolutions appointed your designated members to the Workforce Development Board in April and May 2020.

● The joint committees (PHED and E&C) received an update from WSM and Montgomery College about the County’s workforce development efforts, with particular focus on issues due to COVID-19 on June 18, 2020. The committees were thrilled with Mr. Howie’s efforts to orient the reconstituted Workforce Development Board and address the many of the previous deficiencies of WSM. The joint committees, and subsequently the Council, voiced their support for Mr. Howie to become the full-time CEO for the organization believing he would generate the workforce development product our County sorely needed.

Sincerely,

Sidney Katz
Council President

Hans Riemer
Chair
Planning, Housing and Economic Development Committee

Craig Rice
Chair
Education and Culture Committee

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Ike Leggett, taxes

Leggett Responds to Seventh State on Question B and School Funding

By Adam Pagnucco.

Former County Executive Ike Leggett sent us the following statement about this morning’s post on Question B and school funding.

*****

Thanks to Seventh State for providing a public service by describing the state maintenance of effort law on school funding (“Would Question B Harm Schools?”). You accurately conclude: “… the bottom line is that Question B would do far less to hurt MCPS than the rest of county government.” Trust me, no one understands that point more than I do. As County Executive, I had to make deep cuts to county government to get us through the great recession of a decade ago. The fact that Question B would harm the county government more than it would harm the schools does not make the case that Question B would not harm the schools. Your article confirms the point that Bruce Adams and I have made that Robin Ficker’s Question B could harm our schools and public services. I urge Montgomery voters to vote against Question B.

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Montgomery County Council, Republicans

New Video Blasts Republicans for Nine Districts Charter Amendment

By Adam Pagnucco.

Residents for More Representation, a ballot issue committee co-chaired by Marilyn Balcombe and Michelle Graham, has released a video blasting Republicans for being behind Question D, the nine council district charter amendment. The video is consistent with facts I have previously written about on Seventh State, including the participation of many prominent Republicans in helping the nine districts effort due to their belief that it could lead to a Republican getting elected to the county council. County Republicans are even fundraising for Nine Districts. Residents for More Representation supports Question C, which would add two district council members, and opposes Question D. Their video appears below.

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Adam Pagnucco, budget, MCPS, taxes

Would Question B Harm Schools?

By Adam Pagnucco.

One of the key claims made by some opponents of Question B (Robin Ficker’s latest charter amendment on taxes) is that it will harm schools by limiting growth in property tax revenues. For example, former County Council Member Bruce Adams wrote on Maryland Matters: “Ficker’s amendment would not let even a unanimous council act to preserve our quality schools and services.” Former County Executive Ike Leggett also told MCM in an interview that it could “certainly impact schools.”

Is that true?

First, let’s remember what Question B would actually do. Right now, the county charter limits annual growth in property tax receipts to the rate of inflation (with a few exceptions) unless the county council unanimously votes to go over the limit. The last time that happened was in 2016, when the council voted to increase property taxes by 8.7%. Question B would remove the ability of the council to exceed the limit, thereby imposing an absolute cap on property tax revenue growth at the rate of inflation. (Question A, a competing tax limit charter amendment authored by Council Member Andrew Friedson, would raise far more revenue than Question B over time.) Because of Question B’s limit on revenue growth, some opponents criticize it for potentially damaging many different kinds of county services, including schools.

But school funding is different from most other kinds of funding when it comes to charter limits. The reason for that lies in a fight between the counties and the state back in 2012. At that time, the counties were struggling with the budgetary effects of the Great Recession and several of them had cut local per pupil school funding below the floor established by the state. The state responded by passing SB 848, which made a number of changes to the state’s maintenance of effort law on school funding. One of them allowed counties to circumvent their charter limits to fund school budgets. (State law preempts county charters.) The exact language of this part of the bill, which is now contained in Md. Education Code Ann. § 5-104(d)(1), reads:

Notwithstanding any provision of a county charter that places a limit on that county’s property tax rate or revenues and subject to paragraph (2) of this subsection, a county governing body may set a property tax rate that is higher than the rate authorized under the county’s charter or collect more property tax revenues than the revenues authorized under the county’s charter for the sole purpose of funding the approved budget of the county board.

That means that a county can exceed its charter limit for the purpose of funding its school budget. A majority of county council votes are all that is required to raise property taxes for MCPS’s operating budget regardless of what MoCo voters put in the charter.

Five counties in Maryland have charter limits on property taxes: Anne Arundel, Montgomery, Prince George’s, Talbot and Wicomico. Since the maintenance of effort law was changed in 2012, three of them – Anne Arundel, Prince George’s and Talbot – took advantage of their new authority under state law to circumvent their charter limits and raise taxes for schools. (Talbot did it three times.) Montgomery County Executive Marc Elrich proposed doing the same in his FY21 recommended budget, but the council rejected his tax hike. (It’s not a coincidence that then-budget director and current Chief Administrative Officer Rich Madaleno was one of the architects of the school funding exemption when he was in the State Senate.)

There are two ways in which Question B would indirectly affect MCPS. First, property taxes are a major source of revenue to pay off debt service, which is required to finance bonds issued for school construction. If reduced growth in property taxes impacts debt service, MCPS’s capital budget could become tighter. Property taxes also generate cash that goes into some school capital spending (like technology modernization). Second, county departments outside MCPS contribute ancillary services that benefit the schools. Examples include health and human services (school health nurses, health room technicians, childhood wellness, linkages to learning), police (crossing guards and school resource officers), libraries (research and internet resources) and recreation (sports academies). These services are not inside MCPS’s local appropriation and would be impacted by Question B.

Over time, Question B if passed would probably result in two pots of property tax money – one exclusively for the MCPS operating budget requiring a majority of council votes to increase, and another for everything else with growth capped at inflation. Smart people like Madaleno and the county’s budget analysts can figure out how to move money around to avoid the worst effects of this. Question B would still be a challenge to the county’s finances, a distortion to its budget process and an impediment to funding police, fire service, parks, libraries, road maintenance and more. That’s reason enough to vote against it. But the bottom line is that Question B would do far less to hurt MCPS than the rest of county government.

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Child Care, COVID-19

MoCo Not Moving to Phase 3 for Child Care

By Adam Pagnucco.

Montgomery County Government has announced that it will not be moving to phase 3 for child care. Governor Larry Hogan announced last week that the state’s phase 3 plan now included expanded teacher-child ratios for child care providers but MoCo will not be proceeding in that direction for now. The county’s press release appears below.

Montgomery County Will Not Be Moving to Phase 3 for Child Care Programs
For Immediate Release: Tuesday, Oct. 6, 2020

Montgomery County Health Officer Dr. Travis Gayles reminded child care providers that Montgomery County is not moving to Phase 3 for child care programs. On Thursday Oct. 1, Governor Larry Hogan and Superintendent for the Maryland State Department of Education (MSDE) Karen Salmon announced updated guidelines for child care programs allowing programs to serve up to 20 three- and four-year-old children in a room with a ratio of one teacher to 10 students and up to 30 school-age students with a ratio of one teacher to 15 students.

Montgomery County will not make this change and will continue to review the recent updates to provide more thorough guidance to child care providers that are affected. Montgomery County made the decision not to proceed based on the data that show sustained levels of community transmission and a continued high percentage of new cases in the zero to 19-year-old age group. This means that child care centers, family providers, letter of compliance programs and other entities licensed under the MSDE Office of Child Care, including school-age care in the county will remain at the levels currently in place.

Child care providers are reminded that they must continue to adhere to the State and local requirements for the wearing of face coverings, physical distancing of six feet, and sanitizing of hands, shared equipment and facilities. These precautions are critical as the County works to reduce the spread of COVID-19.

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Andrew Friedson, Ike Leggett, Judicial Elections, MCEA, MCPS, Montgomery County Council, police, Robin Ficker, taxes, washington post

Top Seventh State Stories, September 2020

By Adam Pagnucco.

These were the top stories on Seventh State in September ranked by page views.

1. Free-For-All
2. Why Montgomery County Ballot Questions B and D Are Truly Bad Ideas You Should Vote Against
3. Harris Blasts MCEA Over School Reopening
4. Harris Apologizes for Comments on School Reopening
5. Progressive-Backed Judge Candidate Courted, Donated to Republicans
6. Changing the Reopening Timeline: A Recipe for Confusion and Anxiety
7. Ballot Question Committee Scorecard
8. Post Editorial: Vote Against All Charter Amendments
9. Judge Candidate on Floyd Cops: “Lock Em Up”
10. Why Progressives Should Support the Friedson Amendment

Free-For-All, which called into question the county’s strategy for dealing with the police department, was the runaway leader this month. That suggests that there is considerable unease about the county’s approach to MCPD which goes far beyond the groups the county hears from regularly. School board candidate Lynne Harris’s criticism of MCEA, for which she later apologized, produced a flood of site traffic. The two posts about circuit court judge candidate Marylin Pierre were circulated by her opponents on the sitting judge slate. The rest of the posts were mostly about MoCo’s charter amendments, on which voting has already begun.

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Adam Pagnucco, campaign finance

Will the Council Make Public Financing More Expensive for Taxpayers?

By Adam Pagnucco.

As MoCo faces a crippling financial shortfall projected at $190 million this year and a billion dollars over the next six years, the county council will be considering increased spending in legislation tomorrow – on political campaigns. The issue at hand is a change in public financing matching formulas that would send more taxpayer dollars into politicians’ campaign funds.

As currently written, the county’s public campaign finance law sends matching funds to participating campaigns for individual contributions made by county residents up to $150. The current formulas appear below.

County Executive candidate

First $50 of individual contribution: matched by 6 public dollars for each dollar collected from a resident.
Second $50 of individual contribution: matched by 4 public dollars for each dollar collected from a resident.
Third $50 of individual contribution: matched by 2 public dollars for each dollar collected from a resident.

County Council candidate

First $50 of individual contribution: matched by 4 public dollars for each dollar collected from a resident.
Second $50 of individual contribution: matched by 3 public dollars for each dollar collected from a resident.
Third $50 of individual contribution: matched by 2 public dollars for each dollar collected from a resident.

In the current system, individual contributions are capped at $150 so no matching funds are made available for contributions greater than that amount. Individuals from outside the county may contribute up to $150 each but such donations are not eligible for matching funds. Contributions from entities other than individuals (like businesses and PACs) are prohibited for candidates in public financing. Self-funding of up to $12,000 from a candidate and spouse combined is permitted. Future contribution limits will be updated in future election cycles for inflation.

Bill 31-20, a package of changes to the public financing law, is on the council’s agenda for action tomorrow morning. For the most part, the bill makes a series of benign tweaks to the law. But it does one thing that increases the cost of public financing: it raises eligible individual contributions from $150 to $250 and creates a dollar-for-dollar public match to the hundred dollar increase. So for a candidate accepting a maximum individual contribution, the matching funds formula would be:

County Executive candidate

Old system: $150 individual contribution, $600 public matching funds, $750 total.
New system: $250 individual contribution, $700 public matching funds, $950 total.

County Council candidate

Old system: $150 individual contribution, $450 public matching funds, $600 total.
New system: $250 individual contribution, $550 public matching funds, $800 total.

How much more would this cost the taxpayers? That’s hard to estimate. The bill’s fiscal note assumes that everyone who gave the maximum $150 contribution in 2018 would give a $250 contribution if allowed and uses the 2018 election as a baseline. (Those are big assumptions, but the fiscal note is what it is!) Using those criteria, the fiscal note estimates that matching funds for $250 contributions would have generated an extra $487,034 in taxpayer costs in 2018, or a 9% increase.

Now let’s not set that number in stone. First, 2018 saw a genuinely contested county executive general election, a very rare event in MoCo politics. Second, there is no guarantee that 2022 will see as many candidates as last time primarily because there may be only one open at-large seat following three open at-large seats in 2018. Third, if Question C (which adds two district seats) passes, there will be more open seats, more candidates and more costs. So if passed, the bill’s extra costs could be higher or lower than the fiscal note’s estimate. But there will be extra costs compared to the current regime.

Why does the bill increase both the maximum individual contribution and the matching funds? There is no reason to believe that public financing levels are inadequate. Six of the nine sitting council members and the county executive used public financing two years ago. All of them faced opponents using traditional financing and still won. The winning candidate for county executive, Marc Elrich, raised $1.9 million in public financing combining the primary and general elections. Four council at-large candidates in public financing (Will Jawando, Evan Glass, Hans Riemer and Bill Conway) raised more than $300,000 each, which is comparable to past totals of leading candidates in the traditional system. Two more (Gabe Albornoz and Hoan Dang) raised more than $250,000. Jawando raised more than $400,000. Again, there is no shortage of money here.

As part of its process in considering the bill, the council surveyed eleven candidates who used public financing in 2018 on their views of necessary changes. Just three candidates recommended increasing the public matching amount and only two candidates recommended increasing the maximum donation. There was little demand for this cost increase. Nevertheless, it somehow made it into the bill. All three members of the Government Operations Committee supported raising the maximum donation from $150 to $250. Sidney Katz and Nancy Navarro voted in favor of a dollar-for-dollar match for the difference between $150 and $250 while Andrew Friedson voted against a funding match for the new hundred dollar increment.

Arranging for what could be a substantial cost increase in public financing – an increase that would be even larger if Question C passes – while at the same time adding council staff, refusing to fund collective bargaining agreements and perhaps making program cuts in the near future would not be a good look for the county council. The council is also being closely watched by advocates of Question B (which would cap property tax growth) and Question D (nine council districts), all of whom will use spending increases for politics to bolster their messages. Raising the contribution limit is one thing; it costs taxpayers nothing. But the council should hold off on changing funding formulas to spend more taxpayer money on their political campaigns.

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Board of Education, COVID-19, MCEA, MCPS

Teachers Repond to Lynne Harris

Guest blog by Grace Lovelace, David Stein and Kerrin Torres-Meriwether.

Classroom educators in MCPS, such as ourselves, were disappointed by Board of Education candidate Lynne Harris’s comments to the Blair High School newspaper, Silver Chips. A potential Board of Education member should refrain from comments that add to a nation-wide, slanderous campaign against teachers’ unions. While we found her comments to be false and accusatory of her fellow educators and our Association being obstructionist, we appreciate Ms. Harris’s apology.

As we reflect on Ms. Harris’s comments and apology, it is important to clarify the following:

Montgomery County Board of Education members oversee a school system with over 160,000 students and a budget of more than two billion dollars. Board members must choose their public words carefully; they do not have the luxury of speaking off the cuff, even when they are tired.

The Montgomery County Education Association (MCEA) and our colleagues across the country have been the most vital voice for guaranteeing safety for staff members and students before returning to schools and worksites.

MCEA and its educators are not to blame for schools being closed, given that we do not make the decision to reopen. In fact, over the last several months, MCEA staff and members have been hard at work advocating and collaborating on the robust virtual program staff members, students, and parents deserve in addition to safe and structured reopening proposals. We have presented MCPS with innovative proposals, including requests for personal protective equipment and adequate sanitation supplies; training for staff members, students, and parents on proper COVID-19 protocols and precautions; and a district matching program for donated resources with equitable distribution to highly impacted schools. MCEA has played a constructive role in ensuring educator seats at the table, as we advocate for educators, students, and their families.

We are proud of the work we and our colleagues do, not only in schools and other worksites but in the additional hours we volunteer with our Association. While they may sometimes disagree with our positions, Board of Education members customarily demonstrate respect for our union’s work. They must inspire confidence among educators and help establish transparent communication between the school district and families. They should promote the profession of educators and amplify their voices; Ms. Harris, in both her original comments and in her apology, failed in this fundamental obligation.

Grace Lovelace is a second-grade teacher at Brown Station Elementary School.
David Stein is a math teacher at Montgomery Blair High School.
Kerrin Torres-Meriwether is a staff development teacher at Watkins Mill High School.

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Andy Harris, Republicans

Harris Won’t Condemn QAnon

U.S. Rep. Andy Harris (MD 1) was among the 18 representatives who didn’t support a resolution condemning QAnon, a dangerous whackadoodle pro-Trump conspiracy theory. As the Washington Post explains:

QAnon, which took root on anonymous message boards in 2017, holds that Trump is battling a cabal of deep-state saboteurs who worship Satan and traffic children for sex.

The baseless worldview has been identified by the FBI as among the extremist views “very likely” to motivate violence. Its adherents, according to law enforcement, have been arrested in numerous incidents, including two murders, a kidnapping, vandalism of a church and a heavily armed standoff near the Hoover Dam.

Harris didn’t vote no, but instead chose to vote “present.” This makes him different but no less absolutely bonkers.

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Media, unions

WAMU Staff Forming a Union

By Adam Pagnucco.

The content staff at WAMU has announced on Twitter that they are forming a union. Their petition to management is reprinted below.

WAMU Union

We, the undersigned WAMU employees, have come together to form our union.

As public media professionals, we are committed not just to reporting the news and creating entertaining and enriching content, but to building and serving a community that trusts us and values the work we do. Our audience expects transparency and integrity from us as content staff. We are committed to meeting that high standard.

At WAMU, we are grappling with deeply ingrained internal racism, high turnover among women of color, disparities in compensation, a reliance on temporary staff who lack job security, and allegations of sexual harassment by a former staff member. Indeed, we have exposed some of these issues in our reporting and in internal discussions that have resulted in positive actions. We are organizing to ensure that our colleagues are compensated fairly and transparently for all the hours they work. We must honor our mission statement to be a respected and trusted voice by eliminating these injustices and inequalities. Together we seek to establish an inclusive workplace that our audience will enthusiastically support for years to come.

We know that as a union, with a seat at the table with management, we can work to ensure that all employees – especially those who have historically endured systemic oppression – feel empowered, valued and safe where they work.

We are proud to unite as a community and form our union.

We therefore choose SAG-AFTRA as our union for the purposes of collectively negotiating our pay, benefits and working conditions.

We request that you recognize this petition as a demonstration that SAG-AFTRA represents a majority of employees in a unit appropriate for collective bargaining, and that you meet and confer with us in good faith to begin the collective bargaining process.

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