Dear Governor Martin O’Malley,

This letter is sent on behalf of the more than 9,000 educators represented by the Prince George's County Educators' Association (PGCEA). After careful examination of your proposal to pass one-half of the state's contribution to the Maryland State Retirement and Pension System down to the counties, this organization stands in opposition to this initiative in its current form.

First, the maintenance of an adequate retirement plan for teachers is in the best interest of the state as a whole; and as such, it is a responsibility of the state legislature under Article VIII of the Constitution of Maryland. The adoption of your plan would represent a giant-step backward on the issue of statewide equity in public education. The more affluent jurisdictions will find themselves more able to absorb the cost and thereby maintain a competitive edge in hiring and retaining highly-qualified educators. Coping with the increase in retirement costs will hinder less affluent jurisdictions from offering competitive public schools.

We recognize that the plan is designed to minimize the financial impact in the first year; however, the impact on the county budget in the out years promises to be devastating. As the offsets disappear and the jurisdictions absorb more-and-more of the 50% contribution, this line item alone is soon going to exceed $60 million in Prince George's County. In the coming years, this hit to the local budget will hinder our ability to deliver resources to the classroom. It will likely adversely affect our capacity to meet the required set asides for GASBE and, ultimately, could endanger health care for our active and retired employees.

PGCEA believes that this plan would ultimately prove harmful to both children and public employees. It is for these reasons that we stand in opposition to this provision of the proposed Budget Reconciliation & Finance Act.