Anne Arundel County Executive Janet S. Owens cautioned state legislators yesterday that passing a tax cut to help the state's electric utility companies might rob the county of the equivalent of 62 teacher salaries a year.

Her comments came after the senate Budget and Taxation Committee held a hearing on a bill that would cut taxes for Baltimore Gas and Electric Co. and other utilities to help them compete with out-of-state utilities that soon will be able to sell electricity in Maryland.

The tax break could cost Anne Arundel County $2.5 million a year in local business property taxes paid by BGE's facilities in Anne Arundel County, officials said.

"BG&E; is a good neighbor to the county and we want them to stay, so I support some kind of a break for them," said Owens. "However, because of the needs of our schools, the county needs all the revenue we can get."

Catherine Kelly, the county's government relations officer, said Arundel's aging and deteriorating schools need almost $500 million worth of renovations and repairs.

Baltimore County Democratic Sen. Barbara Hoffman, sponsor of Senate Bill 344, said it's fair that counties should share the costs of tax cuts to help electric utilities with the state. She said counties should "tighten their belts" a little.

A national trend toward deregulation of the utility industry is expected to hit Maryland soon, allowing out-of-state power companies to compete with companies like BGE and sell electricity to Maryland customers, Kelly said.

Pub Date: 3/04/99