With jurisdictions throughout the state facing projected budget deficits, county leaders are preparing union leaders for grim budget deliberations next year, which could include renegotiating salary increases.
But budget solutions could be stalled by unions not ready to forgo pay raises promised when counties had more money available.
In Montgomery County, schools Superintendent Jerry D. Weast has alerted principals that the system cannot afford the 5.3 percent pay raises due its 22,000 employees next year. Montgomery County Executive Isiah Leggett (D) and County Council members have met with union leaders about the county's budget as well. Next fiscal year, which begins July 1, the county is expecting a deficit of $250 million.
In Montgomery County, 80 percent of the budget is spent on salaries and benefits for county employees. Statewide the average is between 70 percent and 75 percent, according to the Maryland Association of Counties.
To trim costs across the state, county leaders have implemented savings plans ranging from cutting the county's cable channel in Howard County, restricting take-home vehicles in Carroll County and freezing hiring in Baltimore city.
With so much of the budget spent on personnel costs, county leaders are looking to cut salaries, specifically cost-of-living adjustments.
"If the numbers warrant us to discuss [renegotiating COLAs], the numbers are going to drive that conversation," said Gino Renne, president of Local 1994 MCGEO, Montgomery County's largest union representing 5,000 county employees.
Contracts with the unions provide compounded salary increases ranging from 26 percent to 29 percent over three years, according to council staff. Cost-of-living increases, approved by the council in May, range from 4 percent to 5 percent for union members. Each percentage point increase in COLAs equates to $23 million.
Would unions be in favor of renegotiating contracts? Not without more concrete budget numbers.
"Right now, we don't have any intention of reopening any contracts that we have negotiated," said Nicole Francis-Williams, counsel administrator of the American Federation of State, County and Municipal Employees.
Across the state, AFSCME represents more than 20,000 employees. The union has branches in each of Maryland's 23 counties and Baltimore city.
"If we get to the table and the management team says up front there are problems with the budget, we can work it out. But we don't want to give any of our members false hope. We're all adults. We know there is trouble," Francis-Williams said.
But how much trouble is constantly changing. For this reason, unions are waiting until more figures become available.
"Everybody is looking at budgets right now. We're six months ahead [of the county executive's proposed budget in March]. If the council fully indicates its intention not to fully fund contracts, the parties can renegotiate," said Walt Bader, chief negotiator and past president of Montgomery County's 1,100-member police union. "We try to avoid going outside the law because that invites chaos. If everybody saw it in their best interest, there could be renegotiating for the best circumstance. … It's a simple process. It's about following the rules."
Teachers in Anne Arundel County are in a different situation, union president Timothy Mennuti said.
"We don't have a contract for next year yet. We are just starting negotiations this month and have no idea what the board of education will present," he said.
The Teachers Association of Anne Arundel County represents 6,200 members. For years, the union signed one-year contracts with the county. Two years ago, under Mennuti's leadership, a three-year contract was negotiated with 6 percent increases the first two years and 5 percent the last year.
"We are already contending with low [base] salaries for our teachers and other counties and industries with better pay competing for them," Mennuti said. "None of this is cheap, and you've got to pay the piper to face these challenges."