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Montgomery Co. Council agrees to 7 percent energy tax reduction

Purple Line rendering via MTAThe Montgomery County Council on Thursday agreed to a 7 percent reduction in the county’s energy tax and a six-year capital budget that includes $95 million for a rebuilt Capital Crescent Trail.

After two months of worksessions and Committee work, the Council’s planned straw vote on the FY 15 operating budget and FY 15-20 Capital Improvements Program was delayed for a few hours Thursday morning. When the session started at noon, Councilmember Roger Berliner moved for a 10 percent reduction in the county’s energy/fuel tax, but was met by resistance.

Upon introducing the 100 percent energy tax increase in 2010, County Executive Isiah Leggett said his intention was to let the increase sunset in 2013. That full reduction never happened. Councilmembers Nancy Navarro, Cherri Branson, Marc Elrich, Craig Rice and Hans Riemer voted against Berliner’s proposed 10 percent reduction.

Navarro and Elrich indicated someone threatened not to vote for the budget over the energy tax divide.

“I would not vote against a budget in order to get the number I wanted,” Elrich said. “I want to be clear on that. Some of us would not do that.”

The two didn’t name Berliner, but after the Council unanimously agreed on a 7 percent reduction (Navarro said she sought a 5 percent reduction) Berliner seemed to answer the criticism.

“While I have strong views on the energy tax, I for one am not prepared to vote against a budget that doesn’t reflect 100 percent my priorities,” Berliner said. “This is a good budget. I’m voting for this budget.”

Berliner’s proposal would have used about $3.5 million in excess permitting payments to the county to make up for the revenue lost by reducing the energy tax by an extra 3 percent.

Most of the changes approved Thursday in the capital budget involved shifting funding. The roughly $95 million for rebuilding the Capital Crescent Trail along the Purple Line was added. The county will be responsible for funding the 12-foot-wide hard surface trail from Elm Street Park to Silver Spring.

The $95 million is the latest estimate from the Maryland Transit Administration. The budget makes it clear the costs could change as MTA and a private concessionaire progress in the Purple Line design and building process.

The completion of wider shoulders for bicycle use along MacArthur Boulevard wasn’t in Leggett’s original capital budget recommendation. It was recommended in Committee, but in the final approval, construction was moved from FY 17 to FY 21. The project, which will provide for 2-3 foot shoulders along MacArthur Boulevard from the Beltway to the D.C. line, won’t be completed until 2021 or 2022.

Other changes include slight delays to the Elmhirst Parkway Bridge project. Production delays mean construction will start next spring instead of this summer.

Don’t Settle for Student Loans to Pay for Online Education

Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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