Day: August 27, 2014

District 38 Senate: Mathias vs. McDermott

A few weeks ago I promised to start once again looking into where our candidates get their money.

The first race I wanted to delve into on the financial end was the District 38 Senate race between incumbent Democrat Jim Mathias and challenger Republican Delegate Mike McDermott. As you’ll see in the link, Mathias has the clear financial advantage.

This file is something I composed as a composite which includes all four financial reports due since the beginning of 2014 – the 2013 annual, the two pre-primary reports, and now the first pre-general report.

So we can see that, in this race, incumbent Democrat Jim Mathias has raised a lot of money compared to his opponent, who is also an incumbent in the House of Delegates. Mike McDermott was more or less forced to run for a different office thanks to being squeezed into a single-member district with fellow Delegate Charles Otto by Democratic gerrymandering.

Where did the money come from? More than most others whose financial forms I’ve studied, Mathias gets a lot of donations from ticket sales, presumably to his relatively frequent fundraisers both in the Ocean City area and occasionally across the bridge. Almost 2/3 of his income came that way, with most of the rest being PAC contributions. Having looked as well at the records of his fellow Democrat incumbent Delegate Norm Conway, it’s apparent that PACs are very happy to give plenty of money to Democratic incumbents, but not so much to Republicans because Mike McDermott has negligible PAC money compared to Jim Mathias.

Moreover, there are a lot of big-money donors from Ocean City (and beyond) who have opened up their wallets for Jim Mathias, while only a handful are supporting McDermott. Given the huge disparity in money allotted to fundraising – for every dollar McDermott has spent on fundraising, Mathias has forked over $17.30 – it’s small wonder there’s a big gap in cash on hand.

It’s also worth mentioning that nearly half of Mathias’s total spending has gone to one entity – Rice Consulting of Bel Air, a frequent client of Maryland Democrats. Whether directly or as a pass-thru to other entities, Mathias gave $37,320.16 to Rice Consulting out of $78,388.97 spent.

McDermott has used a pair of outside consultants: Campaign On out of Owings Mills for $3,087 and Scott and Associates of Annapolis for $5,000. That represents about 40% of McDermott’s spending, but it’s going to media rather than fundraising and “strategic incumbency protection,” which are Rice Consulting’s specialties. Personally, I’d prefer strategic taxpayer and citizen protections.

It’s also worth pointing out that several current and former Annapolis and Baltimore Democratic elected officials have chipped in for Mathias from their campaign accounts:

  • retired Delegate Ann Marie Doory: $100
  • District 6 Delegate and State Senate candidate John Olszewski, Jr.: $150
  • District 11 Delegate Dan Morhaim: $250
  • retiring Baltimore County Councilman John Olszewski, Sr.: $450
  • retiring Delegate Brian McHale: $1,000
  • District 40 State Senator Catherine Pugh: $1,000
  • retiring Delegate James Hubbard: $2,000
  • retired Senator (and onetime Congressional candidate) Rob Garagiola: $2,250
  • District 13 Delegate and State Senate candidate Guy Guzzone: $6,000

The only elected official contributing to McDermott’s side thus far is Wicomico County Republican Central Committee-elect member Greg Belcher, who donated $154.18 in closing his election account.

So it’s very obvious that Maryland Democrats and their patrons are throwing the kitchen sink into keeping this seat. Mathias has a war chest which will likely land him some television time and allow him to once again carpetbomb the district with full-color mailings which obfuscate his real record.

But it’s also a fact that Mathias only won one of the three counties in the 38th District last time, winning in Worcester County by just enough to overcome his deficits in Somerset and Wicomico counties. He outspent Republican opponent Michael James $300,835.32 to $225,556.44 in the process, so indications are he will be able to spend the same amount (or more) this time.

Next up will be a look at the Senate race in District 37. My plan is to do each local district on a Tuesday or Wednesday, so look for the other Senate race after Labor Day.

EPA slow-walks unpopular mandate – again

It may not have been such a bad idea at the time, but the thought of adding corn-based ethanol to automotive fuel to stretch the oil supply seems rather silly in retrospect given our recent prowess in finding new supplies of black gold. In 2005, under the George W. Bush administration and a Republican Congress, the EPA was given the first Renewable Fuels Standard (RFS) mandate to include ethanol in motor fuel. It was at a time when many still believed in the theory of “peak oil” and determined we had to look past this resource in order to meet our growing needs.

Fast-forward to the present day and we find that, because of issues with decreased consumption of gasoline combined with increasing statutory requirements for the inclusion of ethanol in automotive fuel, the EPA took the unprecedented step of reducing its mandated amount of ethanol for this year; meanwhile, the RFS which was supposed to come out in November of last year is still on the EPA drawing board.

In reading a summary of energy news I receive daily from the American Petroleum Institute, it was revealed that retailers and other petroleum marketers have their own concerns about the prospect of E15 fuel being approved for use in order to achieve the mandated amount of ethanol required for these increasing RFS numbers.

Naturally, this is from the perspective of what’s derided as Big Oil – on the other side, you have officials in corn-producing states beseeching Barack Obama to stand firm on these standards, while desperately attempting to secure infrastructure to provide the even higher E85 blend for flexfuel vehicles, such as the “I-75 Green Corridor” which has a lot of gaps.

The whole flexfuel idea was popularized a few years ago by a group I gave some pixels to during the $4 a gallon price surge called NozzleRage, which was the brainchild of another group called the Center for Security Policy – their goal in creating yet a third group called Citizens for Energy Freedom was to mandate cars be equipped as flexfuel vehicles. Even though it’s essentially a free option, there are few takers for flexfuel cars as they occupy a tiny proportion of the market – about 1 in 20 cars sold are flexfuel cars (although that number is higher for government vehicles.)

Obviously the hope for ethanol proponents is to expand the number of facilities where E85 can be purchased in order to eliminate the need to go to an unpopular E15 blend while simultaneously being able to ratchet up the RFS figures. If even 15 percent of the cars can run on E85 and the price is competitive, then corn growers would be happy. (Never mind the folly of using food for fuel.)

Personally, though, I’m hoping they scrap the RFS altogether. It was an idea which may have had merit (and a lot of Congressional backing from farm states) a half-decade ago, but we can do better because our oil supplies are much more plentiful thanks to new technology. That’s not to say that technology can’t eventually be in place to use another source for ethanol (like the sugar cane Brazil uses for its much more prevalent ethanol market) but how about letting the market decide?

And while it’s unrelated to ethanol, I thought it was worth devoting a paragraph or two to note that North Carolina – hardly a conservative state – is getting closer to finishing the rulemaking process for fracking in the state. Most noteworthy to me in my cursory reading of the rules is that North Carolina is looking at a fairly sane setback distance from various impediments – nothing more than 650 feet. They also seem to lean heavily on industry standards.

On the other hand, Maryland was looking to set rules which would require a completely arbitrary 2,000 foot setback and require plans for all wells proposed by a drilling company, rather than single wells. In short, we would do to fracking in Maryland what Barack Obama is doing to the coal industry nationwide – strangle it with unneeded and capricious regulations. That should not stand in either case.

It’s been my philosophy that an area which doesn’t grow will die. It may take a while, but killing growth will sooner or later kill the economic viability of a city, county, region, state, or nation. Putting silly regulations in place because a minority believes the debunked hype about a safe process is a surefire way to kill a vital region in the state, not to mention impede the possibility of prosperity elsewhere. We can do much better when common sense prevails.