A "gentleman's disagreement" between the state retirement system and the Baltimore Metropolitan Council has landed in the House of Delegates Appropriations Committee.
On one side, the Maryland State Retirement and Pension System says the council owes the agency about $650,000 to help make up a shortfall in contributions to the system dating to before 1992.
But the council, which was formed from the Baltimore Regional Council of Governments in 1992, says the legislation that created it absolved the nonprofit group from the debts of its predecessor.
"It was not our intention to pass these costs on to the council," said Del. Richard N. Dixon yesterday in support of his bill that is aimed at clarifying the pension issue.
"There was no mention in the fiscal note of these costs," said Mr. Dixon, a Westminster Democrat.
The current council is a regional planning group that shares information to solve common problems. In addition, the group -- which comprises Anne Arundel, Baltimore, Carroll, Harford and Howard counties and Baltimore City -- puts out joint bids for some services.
"This is a gentleman's disagreement about whether the council is responsible for the costs," said Howard Pleines from the state pension system. "So, we come to you to ask for a decision.
"The bill in 1992 says the council is not responsible for the obligations of the Regional Council of Governments. But then it doesn't talk about pensions."
While the former organization performed the same services, its money came from the state, said Paul Farragut, executive director of the Baltimore Metropolitan Council.
The newer organization gets its money from the six participating jurisdictions when they pay for specific services, he said. Mr. Farragut was unable to say how much of the shortfall would be attributed to any one jurisdiction.
"It would just have to be part of our budget," he said.
Further confusion arose in 1993 when 17 employees of the old council who had continued in their jobs successfully petitioned the General Assembly to continue in the state retirement program.
Pension officials said that action made the current council responsible for any costs incurred by the former organization. The council argues that it simply made them responsible for any money due after 1992.
"To us, it's as if you bought a house and then were told that the former tenant didn't pay the electric bill for several years, so you have to pay it," Mr. Farragut said. "We will pay the money owed since the council was started, but we don't think we owe anything before that."