Jan 27

Jan 27 County Investments And Forecasts In Growth Pattern

Office of Management and Budget Director, Stanley Earley (left) and Prince George’s County Chief Administrative Officer Major Riddick present the county’s fiscal status. PHOTO: Prince George’s Office Of Communications, John Edmunds.

Indicators Show Prince George’s Continues To Solidify Economic Ground

By Raoul Dennis // Photos By John Edmunds, Prince George’s Office of Communications

Prince George’s County continues to strengthen its economic base and expand revenue streams as demonstrated most recently at a Jan. 21 County Council retreat. The county continues to lead the state in job creation and growth, specifically outpacing neighboring Montgomery County in that category.

County leaders shared a financial overview and, in a presentation from the Office of Finance, a glimpse of the county’s investment portfolio.

The county is currently expecting a $53.9 million surplus from FY2019, according to a financial overview provided at the retreat held at The Hotel at College Park.

In FY2020, revenues and expenditures are estimated to be $20.6 million above the approved budget.

CS17848 CRA_Prince Georges Suite_300x300px_A.jpg

In the second quarter of 2019, Prince George’s averaged a net gain of 5,583 jobs – a 1.7% gain over the same period in 2018.

The average median home sales price increased to $306.7 in 2019 from 286.5 in 2019. Sales volume increased by 1.0% during the same period, according to reporting by the Metropolitan Regional Information System.

The county’s financial portfolio is growing as well. County investments as of December 2019 stand at $1.68 billion. Interest income on investments currently stand at $25 million – more than three times what they were in 2015 ($3.3 million).

Fifty percent of the county funds earned through the county investment policy must be deposited in either a county-based, minority and/or small banking institutions. Industrial Bank, one of the few banks eligible under CB-75-2016, has been selected for $5MM CD.

Over the next six years, the county does foresee a considerable growing budget gap. Between FY2021 and FY2026, county managers believe that there will be an annual budget gap between $13.7 and $272 million. County leaders must prepare for this by developing more revenue streams over coming years.