Bond questions on November ballot, an explainer

This November, Prince George’s County is asking voters to approve various bond bill items.

State and local governments generally pay for their day-to-day spending — called operating or general spending — with tax revenue. The general operating budget includes things like salaries, utilities, and supplies. For larger projects — called capital projects — they often take out debt in the form of municipal bonds. They pay for that debt out of tax revenue in payments known as debt service, which include both principal and interest, but they can stretch out the payment period over 10, 20, or even 30 years, much like a household mortgage.

Before Prince George’s County can take out this type of municipal bonds, the county usually has to get permission from the county council and then the voters. This takes the form of bond issue questions. This year, voters are asked to approve five groups of bond issues — county buildings, library facilities, community college facilities, public works and transportation facilities, and public safety facilities — totaling $660 million.

Each of these categories has a corresponding county council resolution that provides greater detail about what projects are included, and the projects are further outlined in the 2025-2030 Capital Improvement Program.

Budget context

This year’s bond questions come after the county council approved a fiscal year 2025 budget with a $171 million operating deficit. Council Chair Jolene Ivey (D-District 5) said, “The budget, this year and over the next few years, is going to be the biggest challenge facing our county,” in a press article posted on the county council website. The county is budgeted to spend $184.3 million on debt service out of the general fund in FY 2025, a 5.6% increase from the prior year. According to the county’s most recent audited financials, it had $435 million in general obligation debt as of June 30, 2023. FY 2024’s audited financials are not due until after the election.

County Executive Angela Alsobrooks, who is running for the Senate, proposed a FY 2025 budget with hiring freezes and other budget cuts. While voters are asked to approve new general obligation debt, the projects were already approved by the county council as part of the annual capital improvement plan process. Alsobrooks is one of several county leaders to express concerns about paying for Blueprint for Maryland’s Future, a landmark education funding bill passed in 2021 after then-Governor Larry Hogan’s veto. The state is also projecting future budget challenges in paying for Blueprint with current tax levels. 

Public works and transportation — $311.9 million

The largest project group is for public works and transportation facilities, which includes routine road and bridge replacement and repair. The county plans to spend $147.5 million on “curb and road rehabilitation” for FY 2025 through 2030, all funded with general obligation municipal bonds. Currently, the county has also budgeted $6.8 million on transit-oriented development infrastructure during the same time period, though it also says it intends to take out $20.8 million in bonds for that purpose. Pedestrian safety improvements have a $59.7 million budget, with $55.7 million in bonds.

Community college facilities — $194.4 million

The second largest group is community college facilities, including $72.2 million between FY 2025 and FY 2030 for various improvements and renovations at the main campus in Largo and $1.5 million in new debt for a feasibility study on opening another community college campus in southern Prince George’s County. All of the required debt for the six year plan may not be included in the individual bond questions, because the county can submit new bond questions to the voters every two years during general elections.

County buildings, public safety facilities, and library facilities — $154.2 million

The remaining funds are split between county buildings ($96.7 million), public safety facilities ($40.2 million), and library facilities ($17.3 million). The county buildings portion includes four shelters and renovations to the main county administration building in Upper Marlboro, which was built in 1977. Public safety facilities include capital projects for the police, jails, and fire/emergency medical services. Library facilities projects include a new branch in Langley Park and replacing the Hillcrest Heights branch building.