The state school board denied school funding waivers for Montgomery, Prince George's and Wicomico counties, leaving local officials to revise their budgets to include the funding, which they have said could lead to deeper cuts in county services and employee layoffs.

The counties had sought waivers of the maintenance of effort law that requires jurisdictions to maintain per-pupil spending from year to year. Montgomery County had sought a waiver of about $80 million; Prince George's County sought a $23.6 million waiver and Wicomico County sought a $2 million waiver.

County leaders had argued that the housing and employment slumps had left their coffers with less revenue than expected.

But, in all the cases, the state board found that the counties had not met the burden of proof in showing that revenue losses would prevent the counties from meeting the required funding amounts.

The counties can appeal the school board's decision in their own Circuit Court. As of Friday afternoon, it was unknown if they would.

In a statement Friday, County Executive Isiah Leggett (D) and Council President Philip M. Andrews called the board's decision "totally unjustified."

Of a $2.1 billion school system budget, Montgomery County supplies $1.5 billion.

"This is a classic example of state bureaucrats second-guessing an agreement reached on the local level by Montgomery County and the Montgomery County Public Schools to fully fund County school programs," the two said.

The decisions came down like legal opinions, with a majority of members signing onto majority decisions. One member, Kate Walsh of Catonsville, was absent.

Eleven of the 12 members denied the waiver for Wicomico County. Ten of the 12 denied Prince George's request. One member, Charlene Dukes, abstained because she lives in Glenndale.

Nine of the 12 denied Montgomery's request and two supported — Blair G. Ewing of Silver Spring and Donna Hill Staton of Clarksville.

"The schools aren't harmed and the local government is helped," said Ewing, a former Montgomery County school board member and current vice president of the state school board.

Montgomery schools system officials had no comment Friday.

"I think it puts the county in a tough situation," said Bonnie Cullison, president of the Montgomery County teachers union. "There are going to be many, many difficult decisions to work through now."

Montgomery County is facing a $550 million shortfall of revenues over projected spending. To close the gap, Leggett's spending plan eliminates 400 employee positions, reduces the county reserves by 1 percent, and cuts county programs.

Members of the county and school system's employee unions also agreed to forgo cost-of-living raises next year, but employees will still receive incremental step increases. Leggett has warned of possible furloughs, but to date has not implemented any.

Montgomery County Councilwoman Valerie Ervin was not surprised by the state's decision.

"If you're measuring the other counties and the state — whose employees have taken furloughs and have given up their step [increases] — they appear to have gone deeper than we have," said Ervin (D-Dist. 5) of Silver Spring, chairwoman of the council's Education Committee.

Montgomery County officials were meeting Friday to determine where to find the $80 million. The County Council is scheduled to vote on the budget next week.

Originally eight counties applied for a school funding waiver. Five, however, pulled out facing pressure from school boards, union officials the state teachers union.

Montgomery County was the county in which school and county leaders agreed on the waiver request.

In Prince George's County the disagreement played out publicly as officials from both sides argued that the other should raid their reserve funds to pay for education funding.

County Executive Jack B. Johnson (D) had warned that losing the waiver would result in 365 job cuts on top of the 307 projected in the current budget. On Friday, he and other county officials were "surprised" by the ruling, spokesman John E. Erzen said.

County officials had sought to cut their share, $609.5 million, of the school's $1 billion budget to close a $113 million deficit caused by the declining economy.

School officials, including Superintendent William R. Hite Jr., who opposed the waiver, celebrated the decision Friday.

"We're excited that the state board considered the work that we're attempting to do with our young people and factored the number of schools in school improvement and considered that in the request," said Hite, who warned of larger class sizes, job cuts and employee furloughs if the waiver had been approved.

Wicomico County officials were seeking the waiver to cut from its share of about $51 million of local funding for the school system.

The state board ruled that the county's fiscal hardships were no different from that of other counties and did not warrant a waiver.

"We at least have the stimulus money from the federal government coming in," said Clara B. Floyd, president of the state teachers union on Friday. "We'll work with the school systems to make sure they get out of the economic situation they are in right now."

Read the decisions at gazette.net/links