Growth in population doesn’t pay for itself
Population growth and related sprawling development has long been recognized as a major impediment to Chesapeake Bay restoration. In 1900 there were 4 million people in the bay watershed. By 1950, population doubled to 8 million and is 19 million today.
Increased pollution loads from more people have been exacerbated by development patterns with urban flight to rural and suburban areas with larger lots and even more destruction of forests. Urban areas such as Baltimore are crippled by these destructive patterns.
Since 1950, Baltimore lost 39% of its population losing 374,124 people many of whom moving to the surrounding counties causing more forest loss and infrastructure needs. Many other municipalities have lost population. Such sprawl resulted in a 41% increase in impervious surfaces to accommodate an 8% population increase from 1990 to 2010.
The bay watershed was once 95% forested, now reduced by 40%. Two-thirds of our wetlands have been lost. Forests and wetlands are crucial for water and air quality and wildlife habitat.
Besides the environmental destruction wrought by these forces, state and local taxes keep increasing to fund a growing, spread-out population as our quality of life deteriorates. This is linked to the most abused power in the U.S. — the authority over land use given to local governments through planning and zoning powers. Too many local officials have been blinded by greed, including for campaign contributions, and in rarer cases by bribes. Many local officials still persist in promoting development at any cost.
States have abetted this land abuse system through delegation of most land-use decisions to local governments. The problem has been exacerbated through a system in which the state and federal governments are paying for much of the governmental costs linked to such sprawling development allowed by local governments.
This illogical system makes it easier for county executives, mayors, council members, staffers, and some citizens to take a permissive stance on land development while not having to pay for much of the costs by increasing local taxes, especially the property tax.
State aid to local government absorbs 36% of the state general fund budget — $7.3 billion. Anne Arundel County receives $587 million of this largesse from state taxes, 34% of its operating budget.
These funds help cover costs of local operations including public schools and teacher pensions; community colleges; libraries; police, fire, and rescue services, local 911 systems; local roads; local health departments; elderly and disabled transportation costs; and wastewater treatment plant costs. State funding of public schools has risen by 35% in the last decade to $6.6 billion.
More state dollars flow to local governments from the state capital budget where bonds are issued and paid back with interest. This seemingly “free money” for county and city governments totals more than $1 billion and helps isolate local government recipients from increasing taxes for such items as: $833 million for new public school construction and expansions as well as community college buildings; new local jails, court facilities, police and fire stations; new libraries; septic tank upgrades; waterway improvements including dredging and boat ramps; funding for recreation facilities and land acquisition; and Rural Legacy and Agricultural Preservation grants to buy easements.
The flow of state monies also includes millions of dollars each year in special bond bills sponsored by local legislators eager to bring home the bacon for local projects. These included 2020 bonds for county projects for: American Legion and Elks Lodge halls; Downtown Annapolis Mural Project; PlayEastport; and the Linthicum Veterans Memorial.
All of these state funds are in addition to federal grants to local governments in the hundreds of million dollars annually.
When existing property owners started barking about increasing property taxes, counties realized that new land development did not pay for itself even with this state welfare largesse. The myth that the only way to expand the tax base was for local governments to approve more and more development still persists despite documentation that most development does not pay for itself.
Thirty-five years ago, counties began gaining state approval to impose development impact fees. Fifteen counties collected more than $200 million in 2019 from such fees for new residential and commercial construction.
Anne Arundel County charges $14,022 for a new 2,000 square foot home to help pay for schools, roads, and public safety. Montgomery County charges $50,697. This is in addition to fees of $17,000 for hook-ups to water and sewer in Anne Arundel. The political decision was made to tax new homeowners and businesses rather than existing residents and voters.
In 1994, disgruntled Anne Arundel taxpayers forced a ballot measure that placed a cap on increases on owner-occupied residential property taxes that still exists today.
Nearly all state and federal local officials, liberal and conservative alike, act like heat-seeking missiles to gain federal and state monies for their local jurisdictions, bragging over their triumphs in shaking the public money tree.
If local officials insist on fostering more forest-destroying sprawl development and destabilizing existing urban areas, they should be forced to pay for the costs. Unless the entire land abuse system is radically changed to protect the taxpayer and the environment, the downward spiral will continue.